Keurig Dr PepperWBO:KDP 80 Operating Margin % is 19.01% as of Mar. 2026, which is 12% below its 10-year median of 21.56. GuruFocus rates WBO:KDP with a GF Score™ of 80/100 and a GF Value™ of €37.48 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 116 Beverages - Non-Alcoholic companies, Keurig Dr Pepper ranks better than 91.38% on this metric.
The historical rank and industry rank for Keurig Dr Pepper's Operating Margin % or its related term are showing as below:
WBO:KDP'
s Operating Margin % Range Over the Past 10 Years
Min: 16.62 Med: 21.56 Max: 22.82
Current: 21.29
WBO:KDP's Operating Margin % is ranked better than 91.38% of 116
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 8.975
vs WBO:KDP: 21.29
Keurig Dr Pepper's 5-Year Average Operating Margin % Growth Rate was -0.20% per year.
Keurig Dr Pepper (WBO:KDP) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Keurig Dr Pepper Operating Margin % Related Terms
Keurig Dr Pepper Operating Margin % Historical Data
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The historical data trend for Keurig Dr Pepper's Operating 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: Operating Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Keurig Dr Pepper's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Keurig Dr Pepper's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Keurig Dr Pepper (WBO:KDP) has a Operating Margin % of 19.01% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Keurig Dr Pepper and its competitors. This is 12% below median its historical median of 21.56. Over the past decade, Keurig Dr Pepper's Operating Margin % has ranged from 16.62 to 22.82. According to the industry distribution chart, Keurig Dr Pepper ranks #10 out of 116 companies in the Beverages - Non-Alcoholic industry, placing it in the top 8.6%.
Is Keurig Dr Pepper's Operating Margin % too high?
Keurig Dr Pepper's current Operating Margin % of 19.01% is 12% below median its 10-year median of 21.56. Over the past 10 years, this metric has ranged from a low of 16.62 to a high of 22.82. The Beverages - Non-Alcoholic industry median Operating Margin % is 8.98. Keurig Dr Pepper's value of 19.01% is 111.8% above this industry median. Based on the distribution chart, Keurig Dr Pepper ranks #10 out of 116 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 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Keurig Dr Pepper's Operating Margin % compare to COCSF and COKE?
According to the Beverages - Non-Alcoholic industry distribution chart, Keurig Dr Pepper ranks #10 out of 116 companies for Operating Margin %. This places Keurig Dr Pepper in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.98. Keurig Dr Pepper's value of 19.01% is 111.8% above this benchmark. Historically, Keurig Dr Pepper's own Operating Margin % has ranged from 16.62 to 22.82 over the past decade. While the company's 10-year median is 21.56 vs. the industry median of 8.98, 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 Operating Margin % for a Beverages - Non-Alcoholic company?
The median Operating Margin % among Beverages - Non-Alcoholic companies is 8.98, based on 116 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Keurig Dr Pepper's current Operating Margin % of 19.01% is 111.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Keurig Dr Pepper and its competitors. For the Beverages - Non-Alcoholic industry, the median Operating Margin % is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Keurig Dr Pepper's current Operating Margin % is 19.01%, which is 12% below median its own 10-year median of 21.56. 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 €37.48, compared to a current price of €27.96 — trading 25.4% below its estimated fair value. The current Operating Margin % is 19.01%, which is 12% below median its 10-year median of 21.56 and 111.8% above the Beverages - Non-Alcoholic industry median of 8.98. Keurig Dr Pepper's overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Keurig Dr Pepper (WBO:KDP), the current Operating Margin % is 19.01% 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 €27.96 is trading 25.4% below its estimated GF Value™ of €37.48.
GuruFocus considers Keurig Dr Pepper to be Modestly Undervalued.
Key valuation signals for WBO:KDP:
Operating Margin %: 19.01% (12% below median its 10-year median of 21.56)
GF Value™: €37.48 vs. price of €27.96 (25.4% below fair value)
Industry Position: 111.8% above the Beverages - Non-Alcoholic median (#10 of 116)
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.
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