Keurig Dr Pepper Inc. (KDP)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable brands, modest capital needs, and a price that leaves room for error. Keurig Dr Pepper has real distribution scale and owns coffee and refreshment brands plus single-serve brewing systems, but the numbers do not yet show a high-return franchise. At the close on 2026-10-26, the shares were $34.99, or 35.34 times the $0.99 EPS cited by FairStock. The Graham Number is $20.24, implying a -71.34% margin of safety, so price-based measures say the stock is not cheap. FairStock's P/B is 1.90, ROE 5.10%, ROCE 3.38%, and D/E 1.00; Altman Z-score is 0.54 and Piotroski F-score 5/9. Those are not the marks of a fortress balance sheet. The filed figures show revenue of $16.6B in FY2025, up from $15.4B in FY2024, and net income of $2.1B versus $1.4B; but FY2023 net income was $2.2B, so profit has not compounded smoothly. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $7.3B but net income only $142.0M and diluted EPS $0.04, a very thin margin. TTM free cash flow of $2.0B and a 4.1% FCF yield are positives, and the 2.97% dividend with beta 0.41 suggests defensiveness. FairStock calls it a STALWART, with 9.4% profit and 7.4% revenue growth over five years. Still, at 17.66 EV/EBITDA and a 41/100 FairStock score, I would want evidence of margin recovery and debt reduction before calling the value compelling.

In plain English: Keurig Dr Pepper makes and sells coffee, soda, and other drinks, plus single-serve brewers and pods. The business has familiar brands and steady sales, but recent profit was thin and it carries a fair amount of debt. At the recent stock price, the shares look expensive compared with the company's reported profit and the value of its assets minus debts.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer