Dr Pepper Snapple Group Inc.

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DPS : NYSE : Consumer Non-Durables
$118.0 -0.4 | -0.34%
Today's Range: 117.74 - 118.42
Avg. Daily Volume: 2395600.0
03/21/18 - 4:02 PM ET

Financial Analysis

DR PEPPER SNAPPLE GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DR PEPPER SNAPPLE GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.64 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 14.85% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1643.01578.0
EBITDA ($mil)395.0388.0
EBIT ($mil)344.0339.0
Net Income ($mil)508.0165.0

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)79.01787.0
Total Assets ($mil)10022.09791.0
Total Debt ($mil)4479.04478.0
Equity ($mil)2451.02134.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin61.1761.79
EBITDA Margin24.0424.58
Operating Margin20.9421.48
Sales Turnover0.670.66
Return on Assets10.738.65
Return on Equity43.939.69
Debt Q4 FY17 Q4 FY16
Current Ratio0.92.6
Interest Expense40.043.0
Interest Coverage8.67.88

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)179.74183.12
Div / share0.580.53
Book value / share13.6411.65
Institutional Own % n/a n/a
Avg Daily Volume2468378.01256228.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 51.78 for the Beverages industry and a discount compared to the S&P 500 average of 25.66. Conducting a second comparison, its price-to-book ratio of 8.60 indicates a significant premium versus the S&P 500 average of 3.28 and a premium versus the industry average of 7.56. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, DR PEPPER SNAPPLE GROUP INC seems to be trading at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DPS 19.88 Peers 51.78   DPS 20.31 Peers 19.47

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DPS is trading at a significant discount to its peers.


Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DPS is trading at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DPS 20.63 Peers 23.13   DPS NM Peers 0.83

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DPS is trading at a valuation on par with its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DPS's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DPS 8.60 Peers 7.56   DPS 29.95 Peers 139.00

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DPS is trading at a premium to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DPS is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DPS 3.15 Peers 4.61   DPS 3.88 Peers 12.63

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DPS is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DPS significantly trails its peers on the basis of sales growth



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