PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
122.74 EUR
-1.04 (-0.84%)
We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 25 industry peers in the Beverages industry. PEP scores excellent on profitability, but there are concerns on its financial health. PEP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
PEP had positive earnings in the past year.
PEP had a positive operating cash flow in the past year.
Each year in the past 5 years PEP has been profitable.
In the past 5 years PEP always reported a positive cash flow from operatings.
1.2 Ratios
PEP has a better Return On Assets (6.78%) than 88.00% of its industry peers.
PEP has a Return On Equity of 37.26%. This is amongst the best in the industry. PEP outperforms 92.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.32%, PEP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PEP is significantly above the industry average of 8.01%.
| 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 PEP (7.82%) is comparable to the rest of the industry.
PEP's Profit Margin has been stable in the last couple of years.
PEP has a Operating Margin of 15.49%. This is comparable to the rest of the industry: PEP outperforms 52.00% of its industry peers.
In the last couple of years the Operating Margin of PEP has remained more or less at the same level.
PEP has a Gross Margin (54.50%) which is in line with its industry peers.
PEP's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PEP is creating value.
The number of shares outstanding for PEP remains at a similar level compared to 1 year ago.
PEP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PEP has a worse debt to assets ratio.
2.2 Solvency
PEP has an Altman-Z score of 3.57. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
PEP has a better Altman-Z score (3.57) than 80.00% of its industry peers.
The Debt to FCF ratio of PEP is 7.49, which is on the high side as it means it would take PEP, 7.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PEP (7.49) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.28 is on the high side and indicates that PEP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.28, PEP is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.57 |
ROIC/WACC2.03
WACC7.53%
2.3 Liquidity
PEP has a Current Ratio of 0.91. This is a bad value and indicates that PEP is not financially healthy enough and could expect problems in meeting its short term obligations.
PEP has a Current ratio of 0.91. This is in the lower half of the industry: PEP underperforms 68.00% of its industry peers.
A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
The Quick ratio of PEP (0.72) is better than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
PEP 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, PEP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.13% on average per year.
The Revenue has been growing slightly by 0.49% in the past year.
Measured over the past years, PEP shows a small growth in Revenue. The Revenue has been growing by 6.46% on average per year.
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
Based on estimates for the next years, PEP will show a small growth in Earnings Per Share. The EPS will grow by 4.04% on average per year.
Based on estimates for the next years, PEP 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
Based on the Price/Earnings ratio of 18.08, the valuation of PEP can be described as rather expensive.
PEP's Price/Earnings ratio is in line with the industry average.
PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
A Price/Forward Earnings ratio of 16.40 indicates a correct valuation of PEP.
The rest of the industry has a similar Price/Forward Earnings ratio as PEP.
PEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than 64.00% of the companies in the same industry.
PEP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. PEP is more expensive than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.58 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)44.4
PEG (5Y)2.22
EPS Next 2Y2.98%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, PEP is a good candidate for dividend investing.
PEP's Dividend Yield is rather good when compared to the industry average which is at 3.20. PEP pays more dividend than 84.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
The dividend of PEP is nicely growing with an annual growth rate of 6.80%!
Dividend Growth(5Y)6.8%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
PEP pays out 104.55% of its income as dividend. This is not a sustainable payout ratio.
PEP'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%
FRA:PEP (11/10/2025, 7:00:00 PM)
122.74
-1.04 (-0.84%)
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 Cap167.83B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target138.96 (13.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend4.55
Dividend Growth(5Y)6.8%
DP104.55%
Div Incr Years6
Div Non Decr Years6
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)2.98%
PT rev (3m)6.96%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)1.04%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 16.4 | ||
| P/S | 2.1 | ||
| P/FCF | 28.58 | ||
| P/OCF | 16.51 | ||
| P/B | 10.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.44 |
EPS(TTM)6.79
EY5.53%
EPS(NY)7.49
Fwd EY6.1%
FCF(TTM)4.29
FCFY3.5%
OCF(TTM)7.44
OCFY6.06%
SpS58.43
BVpS12.26
TBVpS-9.05
PEG (NY)44.4
PEG (5Y)2.22
Graham Number43.29
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 | 3.57 |
F-Score5
WACC7.53%
ROIC/WACC2.03
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 / PEP.DE FAQ
Can you provide the ChartMill fundamental rating for PEPSICO INC?
ChartMill assigns a fundamental rating of 4 / 10 to PEP.DE.
What is the valuation status for PEP stock?
ChartMill assigns a valuation rating of 3 / 10 to PEPSICO INC (PEP.DE). This can be considered as Overvalued.
Can you provide the profitability details for PEPSICO INC?
PEPSICO INC (PEP.DE) 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 (PEP.DE) is 18.08 and the Price/Book (PB) ratio is 10.01.
Can you provide the dividend sustainability for PEP stock?
The dividend rating of PEPSICO INC (PEP.DE) is 6 / 10 and the dividend payout ratio is 104.55%.