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PEPSICO INC (1PEP.MI) Stock Fundamental Analysis

BIT:1PEP - Euronext Milan - US7134481081 - Common Stock - Currency: EUR

120.24  -3.7 (-2.99%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to 1PEP. 1PEP was compared to 26 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year 1PEP was profitable.
1PEP had a positive operating cash flow in the past year.
In the past 5 years 1PEP has always been profitable.
In the past 5 years 1PEP always reported a positive cash flow from operatings.
1PEP.MI Yearly Net Income VS EBIT VS OCF VS FCF1PEP.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

1.2 Ratios

Looking at the Return On Assets, with a value of 7.17%, 1PEP belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
With an excellent Return On Equity value of 40.99%, 1PEP belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
1PEP has a Return On Invested Capital of 16.72%. This is amongst the best in the industry. 1PEP outperforms 96.15% 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 8.63%.
The 3 year average ROIC (15.79%) for 1PEP is below the current ROIC(16.72%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.17%
ROE 40.99%
ROIC 16.72%
ROA(3y)9.44%
ROA(5y)8.85%
ROE(3y)51.36%
ROE(5y)50.9%
ROIC(3y)15.79%
ROIC(5y)14.66%
1PEP.MI Yearly ROA, ROE, ROIC1PEP.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

With a Profit Margin value of 8.23%, 1PEP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Profit Margin of 1PEP has remained more or less at the same level.
With a Operating Margin value of 15.63%, 1PEP perfoms like the industry average, outperforming 53.85% 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 of 54.92%. This is in the better half of the industry: 1PEP outperforms 61.54% of its industry peers.
1PEP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.63%
PM (TTM) 8.23%
GM 54.92%
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%
1PEP.MI Yearly Profit, Operating, Gross Margins1PEP.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
1PEP has a worse debt/assets ratio than last year.
1PEP.MI Yearly Shares Outstanding1PEP.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
1PEP.MI Yearly Total Debt VS Total Assets1PEP.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

1PEP has an Altman-Z score of 3.49. This indicates that 1PEP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.49, 1PEP is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
1PEP has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as 1PEP would need 7.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.27, 1PEP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
1PEP has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
1PEP has a worse Debt to Equity ratio (2.14) than 84.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 7.27
Altman-Z 3.49
ROIC/WACC2.16
WACC7.75%
1PEP.MI Yearly LT Debt VS Equity VS FCF1PEP.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

A Current Ratio of 0.78 indicates that 1PEP may have some problems paying its short term obligations.
1PEP has a worse Current ratio (0.78) than 65.38% of its industry peers.
1PEP has a Quick Ratio of 0.78. 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 Quick ratio of 0.60 is in line compared to the rest of the industry. 1PEP outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.78
Quick Ratio 0.6
1PEP.MI Yearly Current Assets VS Current Liabilites1PEP.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

3

3. Growth

3.1 Past

The earnings per share for 1PEP have decreased by -0.63% 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.
1PEP shows a decrease in Revenue. In the last year, the revenue decreased by -0.33%.
Measured over the past years, 1PEP shows a small growth in Revenue. The Revenue has been growing by 6.46% on average per year.
EPS 1Y (TTM)-0.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-7.02%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%1%

3.2 Future

1PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.50% yearly.
Based on estimates for the next years, 1PEP will show a small growth in Revenue. The Revenue will grow by 2.85% on average per year.
EPS Next Y-2.41%
EPS Next 2Y1.73%
EPS Next 3Y3.12%
EPS Next 5Y3.5%
Revenue Next Year-0.12%
Revenue Next 2Y1.45%
Revenue Next 3Y2.07%
Revenue Next 5Y2.85%

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.
1PEP.MI Yearly Revenue VS Estimates1PEP.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
1PEP.MI Yearly EPS VS Estimates1PEP.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.63, 1PEP is valued on the expensive side.
76.92% of the companies in the same industry are more expensive than 1PEP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.91. 1PEP is valued slightly cheaper when compared to this.
1PEP is valuated correctly with a Price/Forward Earnings ratio of 16.42.
1PEP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1PEP to the average of the S&P500 Index (37.11), we can say 1PEP is valued rather cheaply.
Industry RankSector Rank
PE 17.63
Fwd PE 16.42
1PEP.MI Price Earnings VS Forward Price Earnings1PEP.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.88
EV/EBITDA 12.72
1PEP.MI Per share data1PEP.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

The excellent profitability rating of 1PEP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.17
EPS Next 2Y1.73%
EPS Next 3Y3.12%

4

5. Dividend

5.1 Amount

1PEP has a Yearly Dividend Yield of 3.91%.
1PEP's Dividend Yield is a higher than the industry average which is at 2.79.
Compared to an average S&P500 Dividend Yield of 2.32, 1PEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.91%

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 98.89% 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.
DP98.89%
EPS Next 2Y1.73%
EPS Next 3Y3.12%
1PEP.MI Yearly Income VS Free CF VS Dividend1PEP.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
1PEP.MI Dividend Payout.1PEP.MI Dividend Payout, showing the Payout Ratio.1PEP.MI Dividend Payout.PayoutRetained Earnings

PEPSICO INC

BIT:1PEP (7/21/2025, 7:00:00 PM)

120.24

-3.7 (-2.99%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)07-17 2025-07-17/bmo
Earnings (Next)10-06 2025-10-06/bmo
Inst Owners78.94%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap164.62B
Analysts67.14
Price Target129.83 (7.98%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.91%
Yearly Dividend4.49
Dividend Growth(5Y)6.8%
DP98.89%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.01%
Min EPS beat(2)-1.39%
Max EPS beat(2)3.41%
EPS beat(4)1
Avg EPS beat(4)0.46%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)2.18%
EPS beat(12)9
Avg EPS beat(12)2.98%
EPS beat(16)12
Avg EPS beat(16)2.97%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)1%
Revenue beat(8)1
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)0.31%
Revenue beat(16)9
Avg Revenue beat(16)0.99%
PT rev (1m)-1.94%
PT rev (3m)-16.63%
EPS NQ rev (1m)-4.19%
EPS NQ rev (3m)-6.88%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)1.81%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 17.63
Fwd PE 16.42
P/S 2.07
P/FCF 26.88
P/OCF 15.58
P/B 10.31
P/tB N/A
EV/EBITDA 12.72
EPS(TTM)6.82
EY5.67%
EPS(NY)7.32
Fwd EY6.09%
FCF(TTM)4.47
FCFY3.72%
OCF(TTM)7.72
OCFY6.42%
SpS58.11
BVpS11.66
TBVpS-10.17
PEG (NY)N/A
PEG (5Y)2.17
Profitability
Industry RankSector Rank
ROA 7.17%
ROE 40.99%
ROCE 20.8%
ROIC 16.72%
ROICexc 18.91%
ROICexgc 43.5%
OM 15.63%
PM (TTM) 8.23%
GM 54.92%
FCFM 7.7%
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-Score5
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF 7.27
Debt/EBITDA 2.15
Cap/Depr 129.26%
Cap/Sales 5.58%
Interest Coverage 250
Cash Conversion 66.58%
Profit Quality 93.56%
Current Ratio 0.78
Quick Ratio 0.6
Altman-Z 3.49
F-Score5
WACC7.75%
ROIC/WACC2.16
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)-0.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-7.02%
EPS Next Y-2.41%
EPS Next 2Y1.73%
EPS Next 3Y3.12%
EPS Next 5Y3.5%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%1%
Revenue Next Year-0.12%
Revenue Next 2Y1.45%
Revenue Next 3Y2.07%
Revenue Next 5Y2.85%
EBIT growth 1Y0.64%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year20.6%
EBIT Next 3Y10.35%
EBIT Next 5Y7.49%
FCF growth 1Y23.32%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y11.32%
OCF growth 3Y2.49%
OCF growth 5Y5.33%