We award a narrow Morningstar economic moat rating to Keurig Dr Pepper and expect the firm to deliver excess returns aided by intangible assets and scale benefits in its soft drink portfolio and entrenched retail and brand partner relationships in its coffee systems business for the next 10 years at least.
Keurig remains the number one single-serve brewer maker in North America, with strong retail relationships and a large installed base.
Secular headwinds in carbonated soft drink demand in the US and Canada are a challenge to Keurig Dr Pepper’s long-term growth outlook.
|
Metric
|
KDP
|
KO
|
PEP
|
|---|---|---|---|
Price/Earnings (Normalized) | 17.75 | 21.90 | 22.61 |
Price/Book Value | 1.67 | 9.78 | 12.79 |
Price/Sales | 2.94 | 5.59 | 2.60 |
Price/Cash Flow | 14.14 | 20.54 | 17.29 |
|
Metric
|
KDP
|
KO
|
PEP
|
|---|---|---|---|
Quick Ratio | 0.20 | 0.72 | 0.66 |
Current Ratio | 0.38 | 1.13 | 0.85 |
Interest Coverage | 6.56 | 8.89 | 14.94 |
|
Metric
|
KDP
|
KO
|
PEP
|
|---|---|---|---|
Return on Assets (Normalized) | 4.86% | 12.05% | 10.94% |
Return on Equity (Normalized) | 9.95% | 45.69% | 59.05% |
Return on Invested Capital (Normalized) | 7.37% | 17.60% | 18.39% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
KO
| Coca-Cola Co | Mnqqjqnnw | Hjqj | $254.0 Bil | |
PEP
| PepsiCo Inc | Jndsqtltg | Kydmj | $236.8 Bil | |
NNFSF
| Nongfu Spring Co Ltd Class H Ordinary Shares | — | Vtvv | $61.8 Bil | |
MNST
| Monster Beverage Corp | Lkslzmh | Jcdrtcv | $56.0 Bil | |
CCEP
| Coca-Cola Europacific Partners PLC | Sjhmqkqk | Wbxdm | $30.5 Bil | |
COCSF
| Coca-Cola Femsa SAB de CV Series L | — | Lhdr | $18.8 Bil | |
KOF
| Coca-Cola Femsa SAB de CV ADR | Pwvsngpj | Zyr | $18.8 Bil | |
CELH
| Celsius Holdings Inc | Nhbmhkjnr | Zfq | $16.3 Bil | |
PRMW
| Primo Water Corp | Tqxcgqmnh | Xmt | $2.9 Bil |
