KDPKeurig Dr Pepper
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (1.0×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KDP?
Keurig Dr Pepper earns 5.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.7 points below what the capital costs: growth destroys value
- Operating margin
- 16%
Operating margin · Beverages - Non-Alcoholic median 17% · 12 months to Q2 2026
- Cash conversion
- 1.02×
Cash conversion · 1.05× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.12%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 23% |
| FY2022 | 19% |
| FY2023 | 22% |
| FY2024 | 17% |
| FY2025 | 22% |
Details›
- Gross margin12 months to Q2 2026
- 49%
- Operating margin12 months to Q2 2026
- 16%
- Net margin12 months to Q2 2026
- 7.1%
- Free cash flow margin
- 9.8%
- Revenue, trailing twelve months
- $20.1B
- Free cash flow, trailing twelve months
- $1.97B
- Net income, trailing twelve months
- $1.43B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Beverages, Non-Alcoholic
The closest names by size in the same industry