Equity Brief · Consumer Defensive2026-09-16
KDP·Consumer Defensive

Last results 26 Oct 2026

Keurig Dr Pepper Inc.

I · AI Analysis

The brief

Keurig Dr Pepper owns and distributes a portfolio of beverage brands including Dr Pepper, Canada Dry, Snapple, and 7UP, alongside single-serve coffee systems and K-Cup pods under brands like Green Mountain Coffee Roasters and partnerships with Starbucks and Dunkin' [Yahoo Finance]. The company operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International, selling to retailers ranging from supermarkets to convenience stores and direct to consumers [Yahoo Finance].

Keurig Dr Pepper manufactures and distributes beverages — including Dr Pepper, Canada Dry, Snapple, and K-Cup coffee pods — across the United States and internationally [Yahoo Finance]. The company completed the acquisition of JDE Peet's and announced plans to split into two separate publicly traded businesses by early 2027, one focused on beverages and one on coffee [Seeking Alpha]. It recently sold its stake in Chobani and related assets for $925 million to fund this transformation [Insider Monkey].

Trailing-twelve-month revenue through 30 June 2026 stands at $20.1 billion, but a one-off charge depressed net income to $1.4 billion — $1.9 billion below operating income — making the trailing P/E of 31.8x overstated and net margin of 7.1% understated [Yahoo Finance] [Sentinellis calculation].

The brief AI analysisConfidence 7/10

Sentinellis health

Moderate concerns

4.8/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

14% of score10.0/10
Net margin+7.1%Gross margin+51.0%

Returns on capital

14% of score0.0/10
ROIC+4.5%· need > 10%Return on equity+5.4%· need > 12%

Growth & momentum

19% of score5.0/10
Revenue growth+75.6%Operating margin trend-13.0pp YoY· need not down > 3pp YoY

Balance sheet

29% of score3.3/10
Current ratio0.5x· need > 1.2xNet debt / EBITDA6.9x· need < 2.5xInterest coverage4.4xDebt / equity1.00

Cash generation

14% of score10.0/10
Free cash flow$2.0BCash vs reported profit$2.5B vs $1.3B

Value creation

10% of score0.0/10
ROIC vs cost of capital+0.0pp· need ROIC above WACC

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

$42.9B

Revenue (TTM)

$20.1B

Explainers

How we read these numbers

Plain-English guides · no account needed

II · Recent news

What moved

6 stories · ranked by relevance

  • Company2026-09-11

    Can KDP's International Business Sustain Double-Digit Sales Growth?

    Zacks

  • Company2026-09-15

    Keurig Dr Pepper Bought Size With JDE Peet's, But Split Will Create Value

    Seeking Alpha

  • Company2026-09-15

    Keurig Dr Pepper (KDP) Stock May Look Rich On A $925 Million Asset Sale

    Simply Wall St.

  • Company2026-09-15

    Bank of America Reveals What Keurig Dr Pepper Split Could Unlock - TradingView

    TradingView

  • Company2026-09-15

    Keurig Dr Pepper breakup could reveal the stronger business

    Etf Alerts

  • Company2026-09-11

    Keurig Dr Pepper is Cashing Out of Chobani, is the $925 Million Exit a Smart Reset?

    Insider Monkey

Premium · Free with any account

Operating margin in the latest quarter fell 13 percentage points year over year — from 21.6% to 8.6% — even as revenue surged, indicating rising costs are eroding profitability faster than sales are growing [Sentinellis calculation].

1 of 4 risks in this report

Risks

4

Opportunities

5

Red flags

2

Leadership

10

10 more findings in the full report — free with any account.

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III · Related

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Produced 16 Sept 2026, 09:05 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated