PEPSICO INC (1PEP.MI) Stock Fundamental Analysis
BIT:1PEP - Euronext Milan - US7134481081 - Common Stock - Currency: EUR
Overall 1PEP gets a fundamental rating of 5 out of 10. We evaluated 1PEP against 24 industry peers in the Beverages industry. While 1PEP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1PEP is valued correctly, but it does not seem to be growing. 1PEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1PEP had positive earnings in the past year.
In the past year 1PEP had a positive cash flow from operations.
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
The Return On Assets of 1PEP (9.21%) is better than 91.67% of its industry peers.
With an excellent Return On Equity value of 50.95%, 1PEP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1PEP has a better Return On Invested Capital (16.68%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1PEP is significantly above the industry average of 7.67%.
The last Return On Invested Capital (16.68%) for 1PEP is above the 3 year average (15.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 50.95% | ||
| ROIC | 16.68% |
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
1PEP has a Profit Margin of 10.24%. This is in the better half of the industry: 1PEP outperforms 75.00% of its industry peers.
1PEP's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1PEP (15.92%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 1PEP has remained more or less at the same level.
With a Gross Margin value of 55.13%, 1PEP perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
1PEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.92% | ||
| PM (TTM) | 10.24% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PEP is creating value.
The number of shares outstanding for 1PEP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1PEP has less shares outstanding
Compared to 1 year ago, 1PEP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.58 indicates that 1PEP is not in any danger for bankruptcy at the moment.
1PEP has a Altman-Z score of 3.58. This is in the better half of the industry: 1PEP outperforms 79.17% of its industry peers.
1PEP has a debt to FCF ratio of 6.68. This is a slightly negative value and a sign of low solvency as 1PEP would need 6.68 years to pay back of all of its debts.
1PEP's Debt to FCF ratio of 6.68 is fine compared to the rest of the industry. 1PEP outperforms 66.67% of its industry peers.
1PEP has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1PEP (2.14) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 3.58 |
ROIC/WACC2.12
WACC7.86%
2.3 Liquidity
1PEP has a Current Ratio of 0.83. 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 has a worse Current ratio (0.83) than 62.50% of its industry peers.
A Quick Ratio of 0.65 indicates that 1PEP may have some problems paying its short term obligations.
1PEP's Quick ratio of 0.65 is in line compared to the rest of the industry. 1PEP outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
1PEP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.88%.
Measured over the past years, 1PEP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.13% on average per year.
Looking at the last year, 1PEP shows a decrease in Revenue. The Revenue has decreased by -0.38% 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)3.88%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-8.07%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-1.81%
3.2 Future
The Earnings Per Share is expected to grow by 5.18% on average over the next years.
1PEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y-2.24%
EPS Next 2Y1.82%
EPS Next 3Y3.59%
EPS Next 5Y5.18%
Revenue Next Year-0.27%
Revenue Next 2Y1.35%
Revenue Next 3Y2.07%
Revenue Next 5Y4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.12, the valuation of 1PEP can be described as correct.
Based on the Price/Earnings ratio, 1PEP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
1PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 15.30 indicates a correct valuation of 1PEP.
Based on the Price/Forward Earnings ratio, 1PEP is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1PEP to the average of the S&P500 Index (22.17), we can say 1PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1PEP.
1PEP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.41 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
1PEP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y1.82%
EPS Next 3Y3.59%
5. Dividend
5.1 Amount
1PEP has a Yearly Dividend Yield of 4.31%, which is a nice return.
The stock price of 1PEP dropped by -28.52% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
1PEP's Dividend Yield is rather good when compared to the industry average which is at 2.86. 1PEP pays more dividend than 83.33% of the companies in the same industry.
1PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
On average, the dividend of 1PEP grows each year by 6.80%, which is quite nice.
Dividend Growth(5Y)6.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1PEP pays out 78.38% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1PEP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.38%
EPS Next 2Y1.82%
EPS Next 3Y3.59%
BIT:1PEP (6/2/2025, 7:00:00 PM)
113.66
-1.74 (-1.51%)
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 Cap155.84B
Analysts67.14
Price Target136.46 (20.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend4.64
Dividend Growth(5Y)6.8%
DP78.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.39%
Max EPS beat(2)-0.08%
EPS beat(4)1
Avg EPS beat(4)0.77%
Min EPS beat(4)-1.39%
Max EPS beat(4)4.63%
EPS beat(8)5
Avg EPS beat(8)2.43%
EPS beat(12)9
Avg EPS beat(12)3.2%
EPS beat(16)12
Avg EPS beat(16)3.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)-0.16%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)5
Avg Revenue beat(12)0.45%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-12.38%
PT rev (3m)-18.76%
EPS NQ rev (1m)-11.74%
EPS NQ rev (3m)-11.85%
EPS NY rev (1m)-4.49%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 15.3 | ||
| P/S | 1.94 | ||
| P/FCF | 24.41 | ||
| P/OCF | 14.11 | ||
| P/B | 9.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.77 |
EPS(TTM)7.05
EY6.2%
EPS(NY)7.43
Fwd EY6.54%
FCF(TTM)4.66
FCFY4.1%
OCF(TTM)8.06
OCFY7.09%
SpS58.63
BVpS11.78
TBVpS-9.83
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 50.95% | ||
| ROCE | 20.75% | ||
| ROIC | 16.68% | ||
| ROICexc | 19% | ||
| ROICexgc | 41.96% | ||
| OM | 15.92% | ||
| PM (TTM) | 10.24% | ||
| GM | 55.13% | ||
| FCFM | 7.94% |
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-Score6
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.68 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 136.92% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.16% | ||
| Profit Quality | 77.57% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.58 |
F-Score6
WACC7.86%
ROIC/WACC2.12
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)3.88%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-8.07%
EPS Next Y-2.24%
EPS Next 2Y1.82%
EPS Next 3Y3.59%
EPS Next 5Y5.18%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-1.81%
Revenue Next Year-0.27%
Revenue Next 2Y1.35%
Revenue Next 3Y2.07%
Revenue Next 5Y4%
EBIT growth 1Y4.95%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year20.6%
EBIT Next 3Y10.35%
EBIT Next 5Y8.71%
FCF growth 1Y36.44%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y18.71%
OCF growth 3Y2.49%
OCF growth 5Y5.33%