PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
127.18 EUR
-0.36 (-0.28%)
We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 27 industry peers in the Beverages industry. While PEP has a great profitability rating, there are some minor concerns on its financial health. PEP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PEP was profitable.
PEP had a positive operating cash flow in the past year.
In the past 5 years PEP has always been profitable.
Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.78%, PEP belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
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.
PEP had an Average Return On Invested Capital over the past 3 years of 15.79%. This is significantly above the industry average of 7.77%.
| 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
Looking at the Profit Margin, with a value of 7.82%, PEP is in line with its industry, outperforming 52.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
PEP's Operating Margin of 15.49% is in line compared 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.
The Gross Margin of PEP (54.50%) is comparable to the rest of the industry.
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
PEP 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, PEP has about the same amount of shares outstanding.
PEP has less shares outstanding than it did 5 years ago.
PEP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that PEP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.61, PEP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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.
PEP's Debt to FCF ratio of 7.49 is fine compared to the rest of the industry. PEP outperforms 64.00% of its industry peers.
PEP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PEP (2.28) is worse than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.61 |
ROIC/WACC2.03
WACC7.56%
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's Current ratio of 0.91 is on the low side compared to the rest of the industry. PEP is outperformed by 64.00% 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%.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
Looking at the last year, PEP shows a small growth in Revenue. The Revenue has grown by 0.49% in the last 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 3.34% on average over the next years.
Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y0.39%
EPS Next 2Y3.09%
EPS Next 3Y3.94%
EPS Next 5Y3.34%
Revenue Next Year1.49%
Revenue Next 2Y2.49%
Revenue Next 3Y2.7%
Revenue Next 5Y3.19%
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 18.73, the valuation of PEP can be described as rather expensive.
PEP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.11, PEP is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.94, the valuation of PEP can be described as correct.
PEP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (22.55), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 16.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, PEP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.6 | ||
| EV/EBITDA | 13.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PEP does not grow enough to justify the current Price/Earnings ratio.
PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)47.99
PEG (5Y)2.3
EPS Next 2Y3.09%
EPS Next 3Y3.94%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.86%.
Compared to an average industry Dividend Yield of 2.81, PEP pays a bit more dividend than its industry peers.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
On average, the dividend of PEP grows each year by 6.80%, which is quite nice.
Dividend Growth(5Y)6.8%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
104.55% of the earnings are spent on dividend by PEP. This is not a sustainable payout ratio.
The dividend of PEP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.55%
EPS Next 2Y3.09%
EPS Next 3Y3.94%
FRA:PEP (10/31/2025, 7:00:00 PM)
127.18
-0.36 (-0.28%)
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 Cap173.90B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts67.86
Price Target139.57 (9.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend4.56
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)3.88%
PT rev (3m)7.43%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)1.02%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 16.94 | ||
| P/S | 2.18 | ||
| P/FCF | 29.6 | ||
| P/OCF | 17.09 | ||
| P/B | 10.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.74 |
EPS(TTM)6.79
EY5.34%
EPS(NY)7.51
Fwd EY5.9%
FCF(TTM)4.3
FCFY3.38%
OCF(TTM)7.44
OCFY5.85%
SpS58.47
BVpS12.27
TBVpS-9.06
PEG (NY)47.99
PEG (5Y)2.3
Graham Number43.3
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 | 3.61 |
F-Score5
WACC7.56%
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 Y0.39%
EPS Next 2Y3.09%
EPS Next 3Y3.94%
EPS Next 5Y3.34%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.49%
Revenue Next 2Y2.49%
Revenue Next 3Y2.7%
Revenue Next 5Y3.19%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.12%
EBIT Next 3Y10.68%
EBIT Next 5Y7.49%
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 2 / 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 18.73 and the Price/Book (PB) ratio is 10.36.
Can you provide the dividend sustainability for PEP stock?
The dividend rating of PEPSICO INC (PEP.DE) is 4 / 10 and the dividend payout ratio is 104.55%.