Keurig Dr PepperWBO:KDP +3.64%81 ROC (Joel Greenblatt) % is 21.75% as of Mar. 2026, which is 77% below its 10-year median of 95.39. GuruFocus rates WBO:KDP with a GF Score™ of 81/100 and a GF Value™ of €38.81 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 117 Beverages - Non-Alcoholic companies, Keurig Dr Pepper ranks better than 80.34% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Keurig Dr Pepper's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 21.75%.
The historical rank and industry rank for Keurig Dr Pepper's ROC (Joel Greenblatt) % or its related term are showing as below:
WBO:KDP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 46.71 Med: 95.39 Max: 124.67
Current: 46.71
During the past 13 years, Keurig Dr Pepper's highest ROC (Joel Greenblatt) % was 124.67%. The lowest was 46.71%. And the median was 95.39%.
WBO:KDP's ROC (Joel Greenblatt) % is ranked better than 80.34% of 117
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 20.27
vs WBO:KDP: 46.71
Keurig Dr Pepper's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 1.50% per year.
Keurig Dr Pepper (WBO:KDP) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Keurig Dr Pepper ROC (Joel Greenblatt) % Related Terms
Keurig Dr Pepper ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Keurig Dr Pepper's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Keurig Dr Pepper's ROC (Joel Greenblatt) % falls into.
Keurig Dr Pepper ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 21.75% mean?
Keurig Dr Pepper (WBO:KDP) has a ROC (Joel Greenblatt) % of 21.75% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Keurig Dr Pepper and its competitors. This is 77% below median its historical median of 95.39. Over the past decade, Keurig Dr Pepper's ROC (Joel Greenblatt) % has ranged from 46.71 to 124.67. According to the industry distribution chart, Keurig Dr Pepper ranks #23 out of 117 companies in the Beverages - Non-Alcoholic industry, placing it in the top 19.7%.
Is Keurig Dr Pepper's ROC (Joel Greenblatt) % too high?
Keurig Dr Pepper's current ROC (Joel Greenblatt) % of 21.75% is 77% below median its 10-year median of 95.39. Over the past 10 years, this metric has ranged from a low of 46.71 to a high of 124.67. The Beverages - Non-Alcoholic industry median ROC (Joel Greenblatt) % is 20.27. Keurig Dr Pepper's value of 21.75% is 7.3% above this industry median. Based on the distribution chart, Keurig Dr Pepper ranks #23 out of 117 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 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Keurig Dr Pepper's ROC (Joel Greenblatt) % compare to COCSF and COKE?
According to the Beverages - Non-Alcoholic industry distribution chart, Keurig Dr Pepper ranks #23 out of 117 companies for ROC (Joel Greenblatt) %. This places Keurig Dr Pepper in the top 20% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 20.27. Keurig Dr Pepper's value of 21.75% is 7.3% above this benchmark. Historically, Keurig Dr Pepper's own ROC (Joel Greenblatt) % has ranged from 46.71 to 124.67 over the past decade. While the company's 10-year median is 95.39 vs. the industry median of 20.27, 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 ROC (Joel Greenblatt) % for a Beverages - Non-Alcoholic company?
The median ROC (Joel Greenblatt) % among Beverages - Non-Alcoholic companies is 20.27, based on 117 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Keurig Dr Pepper's current ROC (Joel Greenblatt) % of 21.75% is 7.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Keurig Dr Pepper and its competitors. For the Beverages - Non-Alcoholic industry, the median ROC (Joel Greenblatt) % is 20.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Keurig Dr Pepper's current ROC (Joel Greenblatt) % is 21.75%, which is 77% below median its own 10-year median of 95.39. 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 €38.81, compared to a current price of €27.65 — trading 28.8% below its estimated fair value. The current ROC (Joel Greenblatt) % is 21.75%, which is 77% below median its 10-year median of 95.39 and 7.3% above the Beverages - Non-Alcoholic industry median of 20.27. Keurig Dr Pepper's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Keurig Dr Pepper (WBO:KDP), the current ROC (Joel Greenblatt) % is 21.75% 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 €27.65 is trading 28.8% below its estimated GF Value™ of €38.81.
GuruFocus considers Keurig Dr Pepper to be Modestly Undervalued.
Key valuation signals for WBO:KDP:
ROC (Joel Greenblatt) %: 21.75% (77% below median its 10-year median of 95.39)
GF Value™: €38.81 vs. price of €27.65 (28.8% below fair value)
Industry Position: 7.3% above the Beverages - Non-Alcoholic median (#23 of 117)
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.
81GF Score
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