NASDAQ · Consumer Defensive

Keurig Dr Pepper Inc.

KDP · Beverages - Non-Alcoholic

$30.76

▼ -0.13 (-0.42%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 52.8%

Operating Margin 19.0%

Net Income Margin 6.8%

Fin. Health

D⤢

Years to Pay Off Debt 95.2 yrs

Working Capital vs Long-Term Debt -$7.8B

Working Capital $13.1B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.66x

Cash Flow

C⤢

Free Cash Flow $163M

CapEx % of Net Income 43.7%

Owner Earnings $573M

Profitability

Gross Profit Margin 52.8%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 19.0%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 6.8%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 95.2 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$7.8B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $13.1B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $163M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 43.7%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $573M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Keurig Dr Pepper Inc.

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. The company operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. It manufactures and distributes branded concentrates, syrup, and finished beverages, as well as sales of owned brands and third-party brands; tea, cocoa, and other products; and offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products. The company offers its products under the Dr Pepper, Canada Dry, Mott's, A&W, Peñafiel, GHOST, Snapple, 7UP, Green Mountain Coffee Roasters, Clamato, Core Hydration, The Original Donut Shop, Sunkist soda, Squirt, C4 Energy, Hawaiian Punch, Electrolit, Bloom, Bai, Evian, Yoo-Hoo, Vita Coco, Big Red, RC Cola, Crush, McCafé, Tim Hortons, Van Houtte, Celestial Seasonings, Bigelow, Starbucks, Dunkin', Folgers, Peet's, 7up Energy, and Swiss Miss brands, as well as other partner and private label brands. It markets and sells its products to supermarkets, mass merchandisers, club stores, e-commerce retailers, office superstores, vending machines, fountains, grocery and drug stores, convenience stores, and other small outlets; and directly to consumers through Keurig.com website. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Frisco, Texas.

Market Data

Market Cap $41.9B

Enterprise Value $79.9B

P/E (TTM) 22.79

Dividend Yield 2.98%

Exchange NASDAQ

Key Margins

Gross Profit 52.8%

Operating Margin 19.0%

Net Margin 6.8%

Company Info

Sector Consumer Defensive

Industry Beverages - Non-Alcoholic

Employees 30600

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Keurig Dr Pepper Inc. at $30.76.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $30.76, the stock trades at a 237% premium to its Graham Number of $9.14. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	52.8%▼	53.8%•	N/A
Operating Margin %	19.0%▼	21.3%•	N/A
Net Income %	6.8%▼	7.8%•	N/A
Diluted EPS	0.20▼	0.26•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$73.1B	$55.5B	N/A
Total Debt	$25.7B▲	$16.1B•	N/A
Working Capital	$13.1B▲	-$3.0B•	N/A
Years to Pay Debt	95.21	45.73	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$163M▼	$563M•	N/A
Owner Earnings	$573M	$701M	N/A
CapEx % of Net Income	43.7%	42.2%	N/A

Income Statement

	2026	2025	2024
Tax Rate For Calcs	0	0
Normalized EBITDA	823,000	894,000
Total Unusual Items			-720,000
Total Unusual Items Excluding Goodwill			-720,000
Net Income From Continuing Operation Net Minority Interest	270,000	353,000
Reconciled Depreciation	185,000	199,000
Reconciled Cost Of Revenue	1,878,000	2,080,000
EBITDA	823,000	894,000
EBIT	638,000	695,000
Net Interest Income	-281,000	-238,000
Interest Expense	281,000	238,000
Normalized Income	270,000	353,000
Net Income From Continuing And Discontinued Operation	270,000	353,000
Total Expenses	3,220,000	3,540,000
Total Operating Income As Reported	756,000	881,000
Diluted Average Shares	1,363,700	1,363,000
Basic Average Shares	1,359,200	1,358,600
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	270,000	353,000
Net Income Common Stockholders	270,000	353,000
Net Income	270,000	353,000
Net Income Including Noncontrolling Interests	270,000	353,000
Net Income Continuous Operations	270,000	353,000
Tax Provision	87,000	104,000
Pretax Income	357,000	457,000
Other Income Expense	-118,000	-264,000	-688,000
Other Non Operating Income Expenses	-118,000	-186,000	32,000
Special Income Charges			-720,000
Impairment Of Capital Assets			718,000
Net Non Operating Interest Income Expense	-281,000	-238,000
Interest Expense Non Operating	281,000	238,000
Operating Income	756,000	959,000
Operating Expense	1,342,000	1,460,000
Other Operating Expenses		1,000	199,000
Selling General And Administration	1,342,000	1,459,000
Gross Profit	2,098,000	2,419,000
Cost Of Revenue	1,878,000	2,080,000
Total Revenue	3,976,000	4,499,000
Operating Revenue	3,976,000	4,499,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	1,360,435	1,358,664
Share Issued	1,360,435	1,358,664
Net Debt	24,809,000	15,115,000
Total Debt	25,707,000	16,141,000
Tangible Book Value	-18,602,000	-18,456,000
Invested Capital	50,968,000	41,657,000
Working Capital	13,107,000	-3,024,000
Net Tangible Assets	-18,602,000	-18,456,000
Capital Lease Obligations			1,720,000
Common Stock Equity	25,261,000	25,516,000
Total Capitalization	46,152,000	38,552,000
Total Equity Gross Minority Interest	29,182,000	25,516,000
Minority Interest	3,921,000		0
Stockholders Equity	25,261,000	25,516,000
Gains Losses Not Affecting Retained Earnings	-116,000	102,000
Other Equity Adjustments	-116,000	102,000
Retained Earnings	5,580,000	5,622,000
Additional Paid In Capital	19,783,000	19,778,000
Capital Stock	14,000	14,000
Common Stock	14,000	14,000
Total Liabilities Net Minority Interest	43,958,000	29,943,000
Total Non Current Liabilities Net Minority Interest	33,933,000	21,653,000
Other Non Current Liabilities	3,157,000	3,091,000
Preferred Securities Outside Stock Equity	4,418,000
Derivative Product Liabilities			348,000
Employee Benefits			31,000
Non Current Pension And Other Postretirement Benefit Plans			31,000
Non Current Deferred Liabilities	5,467,000	5,526,000
Non Current Deferred Taxes Liabilities	5,467,000	5,526,000
Long Term Debt And Capital Lease Obligation	20,891,000	13,036,000
Long Term Capital Lease Obligation			1,467,000
Long Term Debt	20,891,000	13,036,000
Long Term Provisions			95,000
Current Liabilities	10,025,000	8,290,000
Other Current Liabilities	878,000	785,000
Current Debt And Capital Lease Obligation	4,816,000	3,105,000
Current Capital Lease Obligation			253,000
Current Debt	4,816,000	3,105,000
Other Current Borrowings	2,627,000	895,000
Commercial Paper	2,189,000	2,210,000
Pensionand Other Post Retirement Benefit Plans Current		0	225,000
Current Provisions			57,000
Payables And Accrued Expenses	4,331,000	4,400,000
Current Accrued Expenses	1,466,000	1,379,000
Interest Payable			107,000
Payables	2,865,000	3,021,000
Other Payable	22,000	25,000
Dividends Payable			312,000
Total Tax Payable			67,000
Income Tax Payable			67,000
Accounts Payable	2,843,000	2,996,000
Total Assets	73,140,000	55,459,000
Total Non Current Assets	50,008,000	50,193,000
Other Non Current Assets	1,176,000	1,295,000
Non Current Deferred Assets	17,000	36,000
Non Current Deferred Taxes Assets	17,000	36,000
Financial Assets			6,000
Investments And Advances	1,703,000	1,660,000
Investmentin Financial Assets			89,000
Available For Sale Securities			89,000
Long Term Equity Investment	1,703,000	1,660,000
Investments In Other Ventures Under Equity Method
Investmentsin Associatesat Cost	1,703,000	1,660,000
Goodwill And Other Intangible Assets	43,863,000	43,972,000
Other Intangible Assets	23,653,000	23,725,000
Goodwill	20,210,000	20,247,000
Net PPE	3,249,000	3,230,000
Accumulated Depreciation		-2,603,000	-2,252,000
Gross PPE	3,249,000	5,833,000
Construction In Progress		289,000	384,000
Other Properties	3,249,000	170,000
Machinery Furniture Equipment		4,405,000	3,807,000
Buildings And Improvements		912,000	825,000
Land And Improvements		57,000	58,000
Current Assets	23,132,000	5,266,000
Other Current Assets	1,048,000	484,000
Hedging Assets Current			80,000
Restricted Cash	17,818,000	18,000
Prepaid Assets		334,000	173,000
Inventory	1,829,000	1,733,000
Inventories Adjustments Allowances			-32,000
Finished Goods	1,097,000	1,019,000
Work In Process	10,000	8,000
Raw Materials	722,000	706,000
Receivables	1,539,000	1,671,000
Other Receivables			146,000
Taxes Receivable			75,000
Accounts Receivable	1,539,000	1,671,000
Allowance For Doubtful Accounts Receivable			-9,000
Gross Accounts Receivable			1,511,000
Cash Cash Equivalents And Short Term Investments	898,000	1,026,000
Cash And Cash Equivalents	898,000	1,026,000

Cash Flow

	2026	2025	2024
Free Cash Flow	163,000	563,000
Repurchase Of Capital Stock		0	-5,000
Repayment Of Debt	-34,000	-533,000
Issuance Of Debt	9,629,000	0
Issuance Of Capital Stock	4,489,000
Capital Expenditure	-118,000	-149,000
Interest Paid Supplemental Data	97,000	217,000
Income Tax Paid Supplemental Data		138,000	85,000
End Cash Position	18,716,000	1,044,000
Beginning Cash Position	1,044,000	569,000
Effect Of Exchange Rate Changes	-150,000	11,000
Changes In Cash	17,822,000	464,000
Financing Cash Flow	17,639,000	-65,000
Cash Flow From Continuing Financing Activities	17,639,000	-65,000
Net Other Financing Charges	3,888,000	-38,000
Cash Dividends Paid	-312,000	-313,000
Common Stock Dividend Paid	-312,000
Net Preferred Stock Issuance	4,489,000
Preferred Stock Issuance	4,489,000
Net Common Stock Issuance		0	-5,000
Common Stock Payments		0	-5,000
Net Issuance Payments Of Debt	9,574,000	286,000
Net Short Term Debt Issuance	-21,000	819,000
Net Long Term Debt Issuance	9,595,000	-533,000
Long Term Debt Payments	-34,000	-533,000
Long Term Debt Issuance	9,629,000	0
Investing Cash Flow	-98,000	-183,000
Cash Flow From Continuing Investing Activities	-98,000	-183,000
Net Other Investing Changes	1,000	1,000
Net Business Purchase And Sale		-35,000	-915,000
Net Intangibles Purchase And Sale	-2,000	-1,000
Purchase Of Intangibles	-2,000	-1,000
Net PPE Purchase And Sale	-97,000	-148,000
Sale Of PPE	19,000	0
Purchase Of PPE	-116,000	-148,000
Operating Cash Flow	281,000	712,000
Cash Flow From Continuing Operating Activities	281,000	712,000
Change In Working Capital	-275,000	-132,000
Change In Other Working Capital	43,000	-114,000
Change In Other Current Liabilities	10,000	160,000
Change In Other Current Assets	-216,000	-33,000
Change In Payables And Accrued Expense	-129,000	-72,000
Change In Inventory	-101,000	113,000
Change In Receivables	118,000	-186,000
Changes In Account Receivables	118,000	-186,000
Other Non Cash Items	146,000	44,000
Stock Based Compensation	30,000	27,000
Provisionand Write Offof Assets	11,000	18,000
Asset Impairment Charge			720,000
Deferred Tax	4,000	84,000
Deferred Income Tax	4,000	84,000
Depreciation Amortization Depletion	185,000	199,000
Depreciation And Amortization	185,000	199,000
Amortization Cash Flow	71,000	80,000
Amortization Of Intangibles	71,000	80,000
Depreciation	114,000	119,000
Operating Gains Losses	-90,000	41,000
Earnings Losses From Equity Investments	-16,000	-73,000
Gain Loss On Investment Securities	-64,000	126,000
Net Foreign Currency Exchange Gain Loss	-20,000	-13,000
Gain Loss On Sale Of PPE	10,000	1,000
Net Income From Continuing Operations	270,000	353,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $3.6B ▲ $4.0B +9.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 54.6% ▲ 52.8% -1.8pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 20.8% ▼ 19.0% -1.8pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 14.2% ▼ 6.8% -7.4pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$4.0B/qtr (≈$15.9B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.31x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$163M

vs Positive

Operating Cash Flow

$281M

Latest quarter · Buffett's cash reality check

ROIC

0.9%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.4x

Net Assets: $29.2B

⚠️ Net margin compressed 7.4pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.

Peers & Industry

No auto-detected peers for Beverages - Non-Alcoholic. You can manually compare KDP against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

4.98%

Moderate — some alignment with shareholders

Return on Equity (ROE)

1.1%

Weak — poor returns on equity

Return on Assets (ROA)

0.4%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$9M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+59.3% YoY

Debt is growing — management is leveraging up

Leadership Team

Timothy Cofer

CEO & Director

Age 56

Pay: $3,091,518

1.145% of net income

Anthony DiSilvestro

Chief Financial Officer

Age 66

Pay: $179,486

0.066% of net income

Eric Gorli

President of U.S. Refreshment Beverages

Age 50

Pay: $1,202,399

0.445% of net income

Robert Stiller

Founder

Age 81

Pay: $12,500

0.005% of net income

Jane Gelfand

Vice President of Investor Relations & Strategic Initiatives

Top Institutional Holders

Institution	% Owned	Shares
FMR, LLC	10.35%	145,628,995
Blackrock Inc.	8.92%	125,509,512
Capital World Investors	7.04%	99,030,129
Harris Associates L.P.	6.61%	93,082,313
Vanguard Capital Management LLC	6.11%	85,965,700
State Street Corporation	4.63%	65,123,238
Vanguard Portfolio Management LLC	4.41%	62,117,319
Wellington Management Group, LLP	4.39%	61,741,393

Risk Analysis

Beta (Market Risk)

0.42

Low volatility — more stable than the market

Short Interest

5.3% of float

Moderate short interest

Debt-to-Equity

0.86x

Conservative balance sheet — low financial risk

Current Ratio

2.31x

Strong liquidity — Graham approved

52-Week Price Range

Low: $24.88 Current: $30.76 High: $35.94

Currently at 53% of 52-week range

Keurig Dr Pepper Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis