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 23 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally 1PEP also has an excellent dividend rating.
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 Return On Assets of 9.21%. This is amongst the best in the industry. 1PEP outperforms 91.30% of its industry peers.
Looking at the Return On Equity, with a value of 50.95%, 1PEP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.68%, 1PEP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1PEP had an Average Return On Invested Capital over the past 3 years of 15.79%. This is significantly above the industry average of 7.90%.
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
Looking at the Profit Margin, with a value of 10.24%, 1PEP is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
1PEP's Profit Margin has been stable in the last couple of years.
1PEP has a Operating Margin of 15.92%. This is comparable to the rest of the industry: 1PEP outperforms 52.17% of its industry peers.
1PEP's Operating Margin has been stable in the last couple of years.
1PEP has a Gross Margin (55.13%) 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 | 15.92% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1PEP is creating some 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
1PEP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.64 indicates that 1PEP is not in any danger for bankruptcy at the moment.
1PEP has a better Altman-Z score (3.64) than 78.26% of its industry peers.
The Debt to FCF ratio of 1PEP is 6.68, which is on the high side as it means it would take 1PEP, 6.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.68, 1PEP is in the better half of the industry, outperforming 69.57% 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 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.75
WACC9.54%
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 Current ratio of 0.83. This is in the lower half of the industry: 1PEP underperforms 60.87% of its industry peers.
1PEP has a Quick 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.
Looking at the Quick ratio, with a value of 0.65, 1PEP is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
| 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.
1PEP shows a decrease in Revenue. In the last year, the revenue decreased by -0.38%.
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
Based on estimates for the next years, 1PEP will show a small growth in Earnings Per Share. The EPS will grow by 3.50% on average per year.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y-2.38%
EPS Next 2Y1.75%
EPS Next 3Y3.2%
EPS Next 5Y3.5%
Revenue Next Year-0.27%
Revenue Next 2Y1.41%
Revenue Next 3Y2.11%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.88, which indicates a correct valuation of 1PEP.
78.26% of the companies in the same industry are more expensive than 1PEP, based on the Price/Earnings ratio.
1PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 16.04, 1PEP is valued correctly.
1PEP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, 1PEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 16.04 |
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 | 25.57 | ||
| EV/EBITDA | 12.22 |
4.3 Compensation for Growth
1PEP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y1.75%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, 1PEP is a good candidate for dividend investing.
1PEP's Dividend Yield is rather good when compared to the industry average which is at 3.04. 1PEP pays more dividend than 82.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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.
1PEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.38%
EPS Next 2Y1.75%
EPS Next 3Y3.2%
BIT:1PEP (7/1/2025, 7:00:00 PM)
115.3
+2.9 (+2.58%)
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 Cap158.09B
Analysts67.14
Price Target132.4 (14.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend4.5
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)-2.97%
PT rev (3m)-16.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.85%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-4.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 16.04 | ||
| P/S | 2.03 | ||
| P/FCF | 25.57 | ||
| P/OCF | 14.78 | ||
| P/B | 10.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.22 |
EPS(TTM)6.83
EY5.92%
EPS(NY)7.19
Fwd EY6.23%
FCF(TTM)4.51
FCFY3.91%
OCF(TTM)7.8
OCFY6.77%
SpS56.79
BVpS11.41
TBVpS-9.52
PEG (NY)N/A
PEG (5Y)2.08
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 | 3.64 |
F-Score6
WACC9.54%
ROIC/WACC1.75
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-2.38%
EPS Next 2Y1.75%
EPS Next 3Y3.2%
EPS Next 5Y3.5%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-1.81%
Revenue Next Year-0.27%
Revenue Next 2Y1.41%
Revenue Next 3Y2.11%
Revenue Next 5Y2.85%
EBIT growth 1Y4.95%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year20.6%
EBIT Next 3Y10.35%
EBIT Next 5Y7.49%
FCF growth 1Y36.44%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y18.71%
OCF growth 3Y2.49%
OCF growth 5Y5.33%