PEPSICO INC (1PEP.MI) Stock Fundamental Analysis
BIT:1PEP - Euronext Milan - US7134481081 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1PEP. 1PEP was compared to 24 industry peers in the Beverages industry. 1PEP has an excellent profitability rating, but there are some minor concerns on its financial health. 1PEP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1PEP had positive earnings in the past year.
1PEP had a positive operating cash flow in the past year.
In the past 5 years 1PEP has always been profitable.
1PEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1PEP has a better Return On Assets (9.63%) than 91.67% of its industry peers.
1PEP has a Return On Equity of 53.09%. This is amongst the best in the industry. 1PEP outperforms 100.00% of its industry peers.
The Return On Invested Capital of 1PEP (17.42%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PEP is significantly above the industry average of 8.12%.
The 3 year average ROIC (15.79%) for 1PEP is below the current ROIC(17.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.63% | ||
| ROE | 53.09% | ||
| ROIC | 17.42% |
ROA(3y)9.44%
ROA(5y)8.85%
ROE(3y)51.36%
ROE(5y)50.9%
ROIC(3y)15.79%
ROIC(5y)14.66%
1.3 Margins
With a decent Profit Margin value of 10.43%, 1PEP is doing good in the industry, outperforming 79.17% of the companies in the same industry.
1PEP's Profit Margin has been stable in the last couple of years.
1PEP's Operating Margin of 16.03% is in line compared to the rest of the industry. 1PEP outperforms 54.17% of its industry peers.
In the last couple of years the Operating Margin of 1PEP has remained more or less at the same level.
1PEP's Gross Margin of 55.13% is in line compared to the rest of the industry. 1PEP outperforms 54.17% of its industry peers.
1PEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.03% | ||
| PM (TTM) | 10.43% | ||
| GM | 55.13% |
OM growth 3Y3.85%
OM growth 5Y0.2%
PM growth 3Y2.85%
PM growth 5Y-0.86%
GM growth 3Y1.08%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
1PEP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1PEP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1PEP has less shares outstanding
The debt/assets ratio for 1PEP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.72 indicates that 1PEP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.72, 1PEP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of 1PEP is 6.16, which is on the high side as it means it would take 1PEP, 6.16 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.16, 1PEP is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 2.06 is on the high side and indicates that 1PEP has dependencies on debt financing.
1PEP has a Debt to Equity ratio of 2.06. This is amonst the worse of the industry: 1PEP underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 3.72 |
ROIC/WACC2.24
WACC7.79%
2.3 Liquidity
1PEP has a Current Ratio of 0.82. This is a bad value and indicates that 1PEP is not financially healthy enough and could expect problems in meeting its short term obligations.
1PEP's Current ratio of 0.82 is on the low side compared to the rest of the industry. 1PEP is outperformed by 70.83% of its industry peers.
A Quick Ratio of 0.65 indicates that 1PEP may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, 1PEP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.09% over the past year.
1PEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
Looking at the last year, 1PEP shows a small growth in Revenue. The Revenue has grown by 0.42% in the last year.
1PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)7.09%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%10.11%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-0.24%
3.2 Future
Based on estimates for the next years, 1PEP will show a small growth in Earnings Per Share. The EPS will grow by 5.18% on average per year.
1PEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y2.36%
EPS Next 2Y4.31%
EPS Next 3Y5%
EPS Next 5Y5.18%
Revenue Next Year-0.13%
Revenue Next 2Y1.74%
Revenue Next 3Y2.42%
Revenue Next 5Y4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.48, which indicates a correct valuation of 1PEP.
Based on the Price/Earnings ratio, 1PEP is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.10, 1PEP is valued a bit cheaper.
1PEP is valuated correctly with a Price/Forward Earnings ratio of 16.09.
1PEP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, 1PEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
1PEP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PEP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.64 | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PEP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1PEP may justify a higher PE ratio.
PEG (NY)6.99
PEG (5Y)2.03
EPS Next 2Y4.31%
EPS Next 3Y5%
5. Dividend
5.1 Amount
1PEP has a Yearly Dividend Yield of 3.79%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of 1PEP has falen by -22.70%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
1PEP's Dividend Yield is a higher than the industry average which is at 2.88.
Compared to an average S&P500 Dividend Yield of 2.43, 1PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
The dividend of 1PEP is nicely growing with an annual growth rate of 6.80%!
Dividend Growth(5Y)6.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
75.48% of the earnings are spent on dividend by 1PEP. This is not a sustainable payout ratio.
1PEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP75.48%
EPS Next 2Y4.31%
EPS Next 3Y5%
BIT:1PEP (4/28/2025, 7:00:00 PM)
118.48
-7.38 (-5.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.71%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap162.50B
Analysts68.57
Price Target155.73 (31.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend4.63
Dividend Growth(5Y)6.8%
DP75.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.08%
Min EPS beat(2)-0.08%
Max EPS beat(2)-0.08%
EPS beat(4)2
Avg EPS beat(4)2.37%
Min EPS beat(4)-0.08%
Max EPS beat(4)5.02%
EPS beat(8)6
Avg EPS beat(8)3.46%
EPS beat(12)10
Avg EPS beat(12)3.61%
EPS beat(16)13
Avg EPS beat(16)3.97%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)-0.02%
Revenue beat(8)2
Avg Revenue beat(8)-0.6%
Revenue beat(12)6
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)1.36%
PT rev (1m)-1.97%
PT rev (3m)-12.27%
EPS NQ rev (1m)-2.86%
EPS NQ rev (3m)-11.13%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-4.12%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 16.09 | ||
| P/S | 2.01 | ||
| P/FCF | 25.64 | ||
| P/OCF | 14.74 | ||
| P/B | 10.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.79 |
EPS(TTM)7.19
EY6.07%
EPS(NY)7.36
Fwd EY6.21%
FCF(TTM)4.62
FCFY3.9%
OCF(TTM)8.04
OCFY6.79%
SpS59.04
BVpS11.6
TBVpS-9.19
PEG (NY)6.99
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.63% | ||
| ROE | 53.09% | ||
| ROCE | 21.67% | ||
| ROIC | 17.42% | ||
| ROICexc | 20.18% | ||
| ROICexgc | 44.95% | ||
| OM | 16.03% | ||
| PM (TTM) | 10.43% | ||
| GM | 55.13% | ||
| FCFM | 7.83% |
ROA(3y)9.44%
ROA(5y)8.85%
ROE(3y)51.36%
ROE(5y)50.9%
ROIC(3y)15.79%
ROIC(5y)14.66%
ROICexc(3y)17.92%
ROICexc(5y)16.59%
ROICexgc(3y)38.78%
ROICexgc(5y)38.65%
ROCE(3y)20.23%
ROCE(5y)18.63%
ROICexcg growth 3Y1.22%
ROICexcg growth 5Y-0.39%
ROICexc growth 3Y8.31%
ROICexc growth 5Y3.24%
OM growth 3Y3.85%
OM growth 5Y0.2%
PM growth 3Y2.85%
PM growth 5Y-0.86%
GM growth 3Y1.08%
GM growth 5Y-0.08%
F-Score7
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 6.16 | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 139.4% | ||
| Cap/Sales | 5.79% | ||
| Interest Coverage | 9.29 | ||
| Cash Conversion | 67.46% | ||
| Profit Quality | 75.06% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.72 |
F-Score7
WACC7.79%
ROIC/WACC2.24
Cap/Depr(3y)151.67%
Cap/Depr(5y)153.05%
Cap/Sales(3y)5.95%
Cap/Sales(5y)5.94%
Profit Quality(3y)75.09%
Profit Quality(5y)81.31%
High Growth Momentum
Growth
EPS 1Y (TTM)7.09%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%10.11%
EPS Next Y2.36%
EPS Next 2Y4.31%
EPS Next 3Y5%
EPS Next 5Y5.18%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-0.24%
Revenue Next Year-0.13%
Revenue Next 2Y1.74%
Revenue Next 3Y2.42%
Revenue Next 5Y4%
EBIT growth 1Y7.31%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year23.96%
EBIT Next 3Y11.41%
EBIT Next 5Y8.71%
FCF growth 1Y-9.28%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y-6.96%
OCF growth 3Y2.49%
OCF growth 5Y5.33%