Keurig Dr PepperWBO:KDP +3.88%84 Gross Margin % is 52.77% as of Mar. 2026, which is 5% below its 10-year median of 55.29. GuruFocus rates WBO:KDP with a GF Score™ of 84/100 and a GF Value™ of €37.92 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 115 Beverages - Non-Alcoholic companies, Keurig Dr Pepper ranks better than 84.35% on this metric.
The historical rank and industry rank for Keurig Dr Pepper's Gross Margin % or its related term are showing as below:
WBO:KDP'
s Gross Margin % Range Over the Past 10 Years
Min: 52.1 Med: 55.29 Max: 59.91
Current: 53.78
During the past 13 years, the highestGross Margin % of Keurig Dr Pepper was 59.91%. The lowest was 52.10%. And the median was 55.29%.
WBO:KDP's Gross Margin % is ranked better than 84.35% of 115
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 38.43
vs WBO:KDP: 53.78
Keurig Dr Pepper had a gross margin of 52.77% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Keurig Dr Pepper was -0.20% per year.
Keurig Dr Pepper (WBO:KDP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Keurig Dr Pepper had a gross margin of 52.77% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Keurig Dr Pepper Gross Margin % Related Terms
Keurig Dr Pepper Gross Margin % Historical Data
* Premium members only.
The historical data trend for Keurig Dr Pepper's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WBO:KDP vs COCSF, COKE, PRMB: Gross Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Keurig Dr Pepper Gross Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Keurig Dr Pepper's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Keurig Dr Pepper (WBO:KDP) has a Gross Margin % of 52.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Keurig Dr Pepper and its competitors. This is near median its historical median of 55.29. Over the past decade, Keurig Dr Pepper's Gross Margin % has ranged from 52.10 to 59.91. According to the industry distribution chart, Keurig Dr Pepper ranks #18 out of 115 companies in the Beverages - Non-Alcoholic industry, placing it in the top 15.7%.
Is Keurig Dr Pepper's Gross Margin % too high?
Keurig Dr Pepper's current Gross Margin % of 52.77% is near median its 10-year median of 55.29. Over the past 10 years, this metric has ranged from a low of 52.10 to a high of 59.91. The Beverages - Non-Alcoholic industry median Gross Margin % is 38.43. Keurig Dr Pepper's value of 52.77% is 37.3% above this industry median. Based on the distribution chart, Keurig Dr Pepper ranks #18 out of 115 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Keurig Dr Pepper has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Keurig Dr Pepper's Gross Margin % compare to COCSF and COKE?
According to the Beverages - Non-Alcoholic industry distribution chart, Keurig Dr Pepper ranks #18 out of 115 companies for Gross Margin %. This places Keurig Dr Pepper in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.43. Keurig Dr Pepper's value of 52.77% is 37.3% above this benchmark. Historically, Keurig Dr Pepper's own Gross Margin % has ranged from 52.10 to 59.91 over the past decade. While the company's 10-year median is 55.29 vs. the industry median of 38.43, Keurig Dr Pepper has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Beverages - Non-Alcoholic company?
The median Gross Margin % among Beverages - Non-Alcoholic companies is 38.43, based on 115 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Keurig Dr Pepper's current Gross Margin % of 52.77% is 37.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Keurig Dr Pepper and its competitors. For the Beverages - Non-Alcoholic industry, the median Gross Margin % is 38.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Keurig Dr Pepper's current Gross Margin % is 52.77%, which is near median its own 10-year median of 55.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Keurig Dr Pepper stock overvalued right now?
Based on GuruFocus' analysis, Keurig Dr Pepper (WBO:KDP) is currently considered Modestly Undervalued. The stock's GF Value™ is €37.92, compared to a current price of €29.05 — trading 23.4% below its estimated fair value. The current Gross Margin % is 52.77%, which is near median its 10-year median of 55.29 and 37.3% above the Beverages - Non-Alcoholic industry median of 38.43. Keurig Dr Pepper's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Keurig Dr Pepper (WBO:KDP), the current Gross Margin % is 52.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Keurig Dr Pepper (WBO:KDP) Overvalued in 2026?
Based on GuruFocus' analysis, Keurig Dr Pepper stock appears to be undervalued.
The current stock price of €29.05 is trading 23.4% below its estimated GF Value™ of €37.92.
GuruFocus considers Keurig Dr Pepper to be Modestly Undervalued.
Key valuation signals for WBO:KDP:
Gross Margin %: 52.77% (near median its 10-year median of 55.29)
GF Value™: €37.92 vs. price of €29.05 (23.4% below fair value)
Industry Position: 37.3% above the Beverages - Non-Alcoholic median (#18 of 115)
No single metric tells the full story. See the WBO:KDP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Keurig Dr Pepper was established in 2018 following a merger between Keurig Green Mountain Coffee and Dr Pepper Snapple. The company manufactures and distributes coffee systems (including coffee brewers and single-serve coffee pods) under the Keurig and Green Mountain brands, as well as ready-to-drink beverages including flavored (non-cola) sparkling soft drinks under well-known brands such as Dr Pepper, Snapple, and Canada Dry. On Aug. 25, 2025, the firm announced a definitive agreement to acquire coffeemaker JDE Peet's for $18 billion in cash, with the deal now scheduled to close in April 2026. Following the merger, it plans to split into two US-listed entities to focus on refreshment beverages in North America and global coffee separately.
84GF Score
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