PEPSICO INC (1PEP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PEP - US7134481081 - Common Stock
124.92 EUR
-1.62 (-1.28%)
Taking everything into account, 1PEP scores 4 out of 10 in our fundamental rating. 1PEP was compared to 29 industry peers in the Beverages industry. While 1PEP has a great profitability rating, there are some minor concerns on its financial health. 1PEP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year 1PEP was profitable.
In the past year 1PEP had a positive cash flow from operations.
Each year in the past 5 years 1PEP has been profitable.
In the past 5 years 1PEP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1PEP (6.78%) is better than 86.21% of its industry peers.
Looking at the Return On Equity, with a value of 37.26%, 1PEP belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
1PEP's Return On Invested Capital of 15.32% is amongst the best of the industry. 1PEP outperforms 96.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PEP is significantly above the industry average of 7.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 37.26% | ||
| ROIC | 15.32% |
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
The Profit Margin of 1PEP (7.82%) is comparable to the rest of the industry.
1PEP's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 15.49%, 1PEP perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
1PEP's Operating Margin has been stable in the last couple of years.
1PEP has a Gross Margin (54.50%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1PEP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.49% | ||
| PM (TTM) | 7.82% | ||
| GM | 54.5% |
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.
Compared to 1 year ago, 1PEP has about the same amount of shares outstanding.
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
1PEP has an Altman-Z score of 3.60. This indicates that 1PEP is financially healthy and has little risk of bankruptcy at the moment.
1PEP has a better Altman-Z score (3.60) than 86.21% of its industry peers.
The Debt to FCF ratio of 1PEP is 7.49, which is on the high side as it means it would take 1PEP, 7.49 years of fcf income to pay off all of its debts.
1PEP has a Debt to FCF ratio (7.49) which is in line with its industry peers.
1PEP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
1PEP's Debt to Equity ratio of 2.28 is on the low side compared to the rest of the industry. 1PEP is outperformed by 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.6 |
ROIC/WACC2.02
WACC7.57%
2.3 Liquidity
A Current Ratio of 0.91 indicates that 1PEP may have some problems paying its short term obligations.
1PEP's Current ratio of 0.91 is on the low side compared to the rest of the industry. 1PEP is outperformed by 68.97% of its industry peers.
A Quick Ratio of 0.72 indicates that 1PEP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, 1PEP is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
1PEP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.63%.
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 small growth in Revenue. The Revenue has grown by 0.49% 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)-1.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-0.87%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
3.2 Future
The Earnings Per Share is expected to grow by 4.04% on average over the next years.
Based on estimates for the next years, 1PEP will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.8%
EPS Next 5Y4.04%
Revenue Next Year1.41%
Revenue Next 2Y2.39%
Revenue Next 3Y2.67%
Revenue Next 5Y3.21%
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
A Price/Earnings ratio of 18.53 indicates a rather expensive valuation of 1PEP.
1PEP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 1PEP to the average of the S&P500 Index (26.49), we can say 1PEP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.81, 1PEP is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PEP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1PEP to the average of the S&P500 Index (23.69), we can say 1PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PEP indicates a slightly more expensive valuation: 1PEP is more expensive than 72.41% of the companies listed in the same industry.
1PEP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1PEP is more expensive than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.3 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)45.52
PEG (5Y)2.28
EPS Next 2Y2.98%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.89%, 1PEP has a reasonable but not impressive dividend return.
1PEP's Dividend Yield is a higher than the industry average which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.31, 1PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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
104.55% 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.
DP104.55%
EPS Next 2Y2.98%
EPS Next 3Y3.8%
BIT:1PEP (12/5/2025, 7:00:00 PM)
124.92
-1.62 (-1.28%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.94%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap170.81B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target137.23 (9.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend4.57
Dividend Growth(5Y)6.8%
DP104.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)0.43%
Max EPS beat(2)3.41%
EPS beat(4)2
Avg EPS beat(4)0.59%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.81%
EPS beat(12)9
Avg EPS beat(12)2.53%
EPS beat(16)12
Avg EPS beat(16)2.86%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)1%
Revenue beat(8)1
Avg Revenue beat(8)-1.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)8
Avg Revenue beat(16)0.76%
PT rev (1m)1.18%
PT rev (3m)0.53%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 16.81 | ||
| P/S | 2.15 | ||
| P/FCF | 29.3 | ||
| P/OCF | 16.92 | ||
| P/B | 10.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.62 |
EPS(TTM)6.74
EY5.4%
EPS(NY)7.43
Fwd EY5.95%
FCF(TTM)4.26
FCFY3.41%
OCF(TTM)7.38
OCFY5.91%
SpS58.01
BVpS12.18
TBVpS-8.99
PEG (NY)45.52
PEG (5Y)2.28
Graham Number42.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 37.26% | ||
| ROCE | 19.06% | ||
| ROIC | 15.32% | ||
| ROICexc | 17.32% | ||
| ROICexgc | 35.16% | ||
| OM | 15.49% | ||
| PM (TTM) | 7.82% | ||
| GM | 54.5% | ||
| FCFM | 7.35% |
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%
ROICexgc growth 3Y1.22%
ROICexgc 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-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 147.96% | ||
| Cap/Sales | 5.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.56% | ||
| Profit Quality | 93.98% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.6 |
F-Score5
WACC7.57%
ROIC/WACC2.02
Cap/Depr(3y)181.31%
Cap/Depr(5y)176.2%
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)-1.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-0.87%
EPS Next Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.8%
EPS Next 5Y4.04%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.41%
Revenue Next 2Y2.39%
Revenue Next 3Y2.67%
Revenue Next 5Y3.21%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.12%
EBIT Next 3Y10.68%
EBIT Next 5Y8.59%
FCF growth 1Y-2.29%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y-3.13%
OCF growth 3Y2.49%
OCF growth 5Y5.33%
PEPSICO INC / 1PEP.MI FAQ
What is the fundamental rating for 1PEP stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1PEP.MI.
What is the valuation status for 1PEP stock?
ChartMill assigns a valuation rating of 2 / 10 to PEPSICO INC (1PEP.MI). This can be considered as Overvalued.
How profitable is PEPSICO INC (1PEP.MI) stock?
PEPSICO INC (1PEP.MI) has a profitability rating of 7 / 10.
What is the valuation of PEPSICO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PEPSICO INC (1PEP.MI) is 18.53 and the Price/Book (PB) ratio is 10.26.
How sustainable is the dividend of PEPSICO INC (1PEP.MI) stock?
The dividend rating of PEPSICO INC (1PEP.MI) is 5 / 10 and the dividend payout ratio is 104.55%.