PEPSICO INC (1PEP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PEP - US7134481081 - Common Stock
126.54 EUR
+1.5 (+1.2%)
Overall 1PEP gets a fundamental rating of 5 out of 10. We evaluated 1PEP against 27 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
1PEP had positive earnings in the past year.
1PEP had a positive operating cash flow in the past year.
1PEP had positive earnings in each of the past 5 years.
Each year in the past 5 years 1PEP had a positive operating cash flow.
1.2 Ratios
1PEP has a better Return On Assets (6.78%) than 88.46% of its industry peers.
1PEP has a Return On Equity of 37.26%. This is amongst the best in the industry. 1PEP outperforms 92.31% of its industry peers.
The Return On Invested Capital of 1PEP (15.32%) 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 7.93%.
| 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
1PEP has a Profit Margin (7.82%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 1PEP has remained more or less at the same level.
1PEP's Operating Margin of 15.49% is in line compared to the rest of the industry. 1PEP outperforms 53.85% of its industry peers.
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 54.50%, 1PEP perfoms like the industry average, outperforming 57.69% of the companies in the same 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.
The number of shares outstanding for 1PEP has been reduced compared to 5 years ago.
1PEP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.56 indicates that 1PEP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.56, 1PEP belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
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 of 7.49. This is in the better half of the industry: 1PEP outperforms 65.38% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that 1PEP has dependencies on debt financing.
1PEP has a worse Debt to Equity ratio (2.28) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.56 |
ROIC/WACC2.05
WACC7.49%
2.3 Liquidity
1PEP has a Current Ratio of 0.91. This is a bad value and indicates that 1PEP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.91, 1PEP is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that 1PEP may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.72, 1PEP is doing good in the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for 1PEP have decreased by -1.63% in the last 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.
The Revenue has been growing slightly by 0.49% in the past year.
The Revenue has been growing slightly by 6.46% on average over the past years.
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
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
A Price/Earnings ratio of 18.58 indicates a rather expensive valuation of 1PEP.
Compared to the rest of the industry, the Price/Earnings ratio of 1PEP is on the same level as its industry peers.
1PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.41.
The Price/Forward Earnings ratio is 16.84, which indicates a correct valuation of 1PEP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PEP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.40. 1PEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PEP is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PEP indicates a slightly more expensive valuation: 1PEP is more expensive than 65.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.36 | ||
| EV/EBITDA | 13.31 |
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 decent profitability rating of 1PEP may justify a higher PE ratio.
PEG (NY)45.64
PEG (5Y)2.29
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 rather good when compared to the industry average which is at 3.22. 1PEP pays more dividend than 80.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, 1PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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
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 (11/24/2025, 7:00:00 PM)
126.54
+1.5 (+1.2%)
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 Cap173.02B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target137.23 (8.45%)
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 | 18.58 | ||
| Fwd PE | 16.84 | ||
| P/S | 2.16 | ||
| P/FCF | 29.36 | ||
| P/OCF | 16.96 | ||
| P/B | 10.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.31 |
EPS(TTM)6.81
EY5.38%
EPS(NY)7.51
Fwd EY5.94%
FCF(TTM)4.31
FCFY3.41%
OCF(TTM)7.46
OCFY5.9%
SpS58.64
BVpS12.31
TBVpS-9.08
PEG (NY)45.64
PEG (5Y)2.29
Graham Number43.43
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 | 3.56 |
F-Score5
WACC7.49%
ROIC/WACC2.05
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 5 / 10 to 1PEP.MI.
What is the valuation status for 1PEP stock?
ChartMill assigns a valuation rating of 3 / 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 18.58 and the Price/Book (PB) ratio is 10.28.
How sustainable is the dividend of PEPSICO INC (1PEP.MI) stock?
The dividend rating of PEPSICO INC (1PEP.MI) is 4 / 10 and the dividend payout ratio is 104.55%.