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KDPKeurig Dr Pepper Inc.Hold5.4·$30.89-1.56%
HoldModerate Confidence
Investment thesis

The stock is trading above its analyst price target against a backdrop of negative free cash flow, an overbought technical reading carrying late-cycle distribution risk, a dividend payout ratio of 289% that appears uncovered, and a weak growth profile — the setup favors patience over new exposure.

Thesis pillars

  • Negative Free Cash Flow Quality FlagStable
  • Dividend Payout Appears UncoveredStable
  • Overbought Late Cycle DistributionImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Keurig Dr Pepper Inc. (KDP) Stock Analysis

HoldVALUE-TRAP 1/5Moderate Confidence

Consumer Defensive · Beverages - Non-Alcoholic

Hold if already holding. Not a fresh buy at $30.89, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Weak growth.

Keurig Dr Pepper manufactures, markets, distributes, and sells hot and cold beverages and single-serve brewing systems in North America through U.S. Refreshment Beverages, U.S. Coffee, and International segments. The company sells to retailers including Walmart (approximately... Read more

$30.89+1.7% A.UpsideScore 5.4/10#10 of 13 Beverages - Non-Alcoholic
QualityF-score7 / 9FCF yield-38.87%
IncomeYield2.98%(5y avg 2.49%)Payout68.15%
Stop $28.89Target $31.45(analyst − 10%)A.R:R 0.3:1
Analyst target$34.94+13.1%17 analysts
$31.45our TP
$30.89price
$34.94mean
$28
$42

Hold if already holding. Not a fresh buy at $30.89, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.4/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news boost analyst 0.80, earnings proximity 18d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-20
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 6, 202618d to earnings· next earnings call

Thesis

Rewards
Positive news sentiment (+1.00)
Earnings estimates trending UP
Positive insider activity
Risks
Analyst target reached - limited upside remaining
Weak growth

Key Metrics

P/E (TTM)22.9
P/E (Fwd)12.2
Mkt Cap$42.1B
EV/EBITDA17.6
Profit Mgn10.8%
ROE6.3%
Rev Growth9.4%
Beta0.41
Dividend2.98%
Rating analysts23

Quality Signals

Piotroski F7/9MoatNarrow

Concentration Risks(10-K Item 1A)

  • LOWCustomerWalmart16%
    10-K Item 1: 'Our largest retailer, Walmart, represented approximately 16% of our consolidated net sales in 2025.'

Material Events(8-K, last 90d)

  • 2026-04-01Item 1.01MEDIUM
    On March 30, 2026, KDP issued 4,500,000 shares of Series A Convertible Perpetual Preferred Stock for $4.5 billion aggregate purchase price to KKR and Apollo investors to finance the acquisition of JDE Peet's N.V.
    SEC filing →
  • 2026-04-01Item 2.01MEDIUM
    KDP completed the acquisition of JDE Peet's N.V. on or around March 30, 2026, a global pure-play coffee company with Jacobs, L'OR, and Peet's brands; proceeds from the preferred stock issuance were used to fund the transaction.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.0
Revenue Growth
4.8
GatesMomentum 4.0<4.5A.R:R 0.3 < 1.5@spotInsider activity: OKNo SEC red flagsNEWS BOOST ANALYST 0.80EARNINGS PROXIMITY 18d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
35 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $29.62Resistance $33.82

Price Targets

$29
$31
A.Upside+1.7%
A.R:R0.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (1.7% upside)
! NEWS_MOD=+2: SELL_IF_HOLDING → HOLD_IF_HOLDING
! momentum at 4.0 (below the engine's 4.5 threshold)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-06 (18d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is KDP stock a buy right now?

Hold if already holding. Not a fresh buy at $30.89, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $31.45 (+1.8%), stop $28.89 (−6.9%), A.R:R 0.3:1. Score 5.4/10, moderate confidence.

What is the KDP stock price target?

Take-profit target: $31.45 (+1.7% upside). Target $31.45 (+1.8%), stop $28.89 (−6.9%), A.R:R 0.3:1. Stop-loss: $28.89.

What are the risks of investing in KDP?

Analyst target reached - limited upside remaining; Weak growth.

Is KDP overvalued or undervalued?

Keurig Dr Pepper Inc. trades at a P/E of 22.9 (forward 12.2). TrendMatrix value score: 6.2/10. Verdict: Hold.

What do analysts say about KDP?

23 analysts cover KDP with a consensus score of 3.8/5. Average price target: $35.

What does Keurig Dr Pepper Inc. do?Keurig Dr Pepper manufactures, markets, distributes, and sells hot and cold beverages and single-serve brewing systems...

Keurig Dr Pepper manufactures, markets, distributes, and sells hot and cold beverages and single-serve brewing systems in North America through U.S. Refreshment Beverages, U.S. Coffee, and International segments. The company sells to retailers including Walmart (approximately 16% of 2025 net sales), bottlers, and away-from-home channels, employing roughly 30,600 people.

Related stocks: COCO (The Vita Coco Company, Inc.) · CELH (Celsius Holdings, Inc.) · MNST (Monster Beverage Corporation) · COKE (Coca-Cola Consolidated, Inc.) · PEP (Pepsico, Inc.)
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