Best
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Growth Stock Analysis As of 22 July 2023
NYSE: KDP (Keurig Dr Pepper Inc.)
- Keurig Dr Pepper (KDP) operates on a dual-business model that combines the strengths of two main segments: Beverage Concentrates and Packaged Beverages.
- KDP owns and licenses beverage concentrates, syrups, and powders used in the production of various beverages.
- They sell these concentrates to bottlers, distributors, and licensed partners who produce and distribute the beverages. All of these help in generating recurring revenue for the company.
- KDP also manufactures, markets, and distributes a wide range of packaged beverages, including coffee, tea, carbonated soft drinks, flavored water, juices, etc.
- KDP captures value at multiple stages of the beverage production and distribution process.
- KDP leverages its strong brands, marketing, and distribution channels to reach consumers directly through retail channels and online.
- KDP’s business model is customer-focused, with a diverse portfolio of beverages catering to various consumer preferences.
- KDP also invests in product innovation, sustainability, and expanding its distribution network to maintain its position as a leading beverage company.
- Top Shareholdings of Keurig Dr Pepper Inc. (KDP):
Holder Shares % Out Value
Vanguard Group Inc 70,578,072 5.03% 2,299,433,714
Blackrock Inc. 68,972,718 4.91% 2,247,131,278
Capital International Investors 51,595,718 3.68% 1,680,988,586
FMR, LLC 50,195,232 3.58% 1,635,360,750
Capital World Investors 40,839,377 2.91% 1,330,546,977
Wellington Management Group, LLP 39,827,389 2.84% 1,297,576,406
State Street Corporation 35,254,781 2.51% 1,148,600,829
Capital Research Global Investors 26,428,631 1.88% 861,044,846
Price (T.Rowe) Associates Inc 22,039,562 1.57% 718,048,970
Boston Partners 21,903,716 1.56% 713,623,107
What we think are PROs of Keurig Dr Pepper Inc. (KDP):
- Diversified Beverage Portfolio: KDP has various types of beverages, including coffee, tea, soft drinks, and juices, which leads to diverse consumer preferences, and increasing market presence.
- Brand Presence: KDP has well-known brands like Keurig, Dr Pepper, Snapple, and Green Mountain Coffee Roasters, KDP enjoys brand recognition and consumer loyalty.
- Dual Business Model: KDP have dual model, combining beverage concentrates and packaged beverages, creating multiple revenue streams.
- Distribution and Retail Partnerships: Strong partnerships with major retailers and distributors enable KDP products to reach a vast consumer base.
- Cost minimization: The merger of Keurig and Dr Pepper Snapple Group has resulted in cost efficiencies, improving financial performance and overall growth.
- Market Leadership: As a leading beverage company, KDP holds a significant market share and competitive advantage in North America.
What we think the RISKs are in Keurig Dr Pepper Inc. (KDP):
- Market Competition: KDP faces competition in the beverage industry, impacting market share, pricing, and profitability by its peers. Any new company can easily enter and disrupt its market share.
- Changing Consumer Preferences: Nowadays, Shifting consumer preferences toward healthier or alternative beverages may reduce demand for certain KDP products.
- Raw Material Costs: Fluctuations in commodity prices, like coffee beans and sugar, can affect KDP’s production costs and profit margins.
- Dependence on Retailers: KDP’s reliance on retail partners exposes them to risks related to changing retail strategies or negotiations.
- Mergers and Acquisitions: Integration challenges from past or potential future acquisitions could disrupt operations and financial performance.
FUNDAMENTALS:
Dividend (Yield) = 2.47%
Market Cap. = 47.735B
Beta = 0.565
P/E Ratio = 34.92
52 wk Range = 30.47 – 41.31
Revenue = 14.33B
EPS = 0.932
- Technicals:
– Changing direction from downward to upward by crossing lower low and ready to make higher high from now.
– Taking support at the past resistance zone.
– Weekly candle closes above 200 days Exponential Moving Average.
– RSI (Weekly) recovering from lower levels, currently at 44 levels.
– Bouncing from Lower support, creating higher highs.
– You can view the yellow circles of the support zone in the rectangular selected zone.
– Increasing in volume from last 1 month at its strong support levels.
Entry: Above 32.80
Target: 42.60 & 50
Stoploss: 29.80
Our Final Thought:
Keurig Dr Pepper is a leading beverage company offering hot and cold beverages together at a large scale. It has a wide beverage portfolio of iconic brands including Dr Pepper, Canada Dry, Snapple, Mott’s, and CORE, as well as the Keurig brewing system and leading-owned brands Green Mountain Coffee Roasters and The Original Donut Shop. KDP’s strong position, commitment to innovation, and strategic efforts position them as a Strong player in the dynamic beverage industry. It has good fundamentals and currently, its technical overview is also good on charts. If it hits the stop loss, you must have to exit from this trade because it may go down below our stop loss due to breaking the support zone. As of now more young people and kids are spending money on partying & drinks this leads to increase in company’s business growth and increase in stock prices. This company is involved in strategic partnerships with other businesses to increase its sales and distribution channels.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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