PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PEP - US7134481081 - Common Stock
124.64 EUR
+0.06 (+0.05%)
PEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Beverages industry. While PEP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PEP has a expensive valuation and it also scores bad on growth.
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
- With an excellent Return On Assets value of 6.78%, PEP belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- PEP has a better Return On Equity (37.26%) than 93.33% 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 96.67% 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 8.18%.
| 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 (15.49%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of PEP has remained more or less at the same level.
- PEP's Gross Margin of 54.50% is in line compared to the rest of the industry. PEP outperforms 60.00% of 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
- PEP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- PEP has about the same amout of shares outstanding than it did 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
- An Altman-Z score of 3.60 indicates that PEP is not in any danger for bankruptcy at the moment.
- PEP has a better Altman-Z score (3.60) than 83.33% of its industry peers.
- PEP has a debt to FCF ratio of 7.49. This is a slightly negative value and a sign of low solvency as PEP would need 7.49 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.49, PEP is in line with its industry, outperforming 56.67% of the companies in the same 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: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.99
WACC7.69%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that PEP may have some problems paying its short term obligations.
- PEP has a Current ratio of 0.91. This is in the lower half of the industry: PEP underperforms 63.33% of its industry peers.
- A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.72, PEP is doing good in the industry, outperforming 66.67% 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 PEP have decreased by -1.63% in the last year.
- 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.
- PEP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.49%.
- 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
- PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.75% yearly.
- The Revenue is expected to grow by 2.97% on average over the next years.
EPS Next Y0.42%
EPS Next 2Y2.84%
EPS Next 3Y3.8%
EPS Next 5Y3.75%
Revenue Next Year1.39%
Revenue Next 2Y2.56%
Revenue Next 3Y2.74%
Revenue Next 5Y2.97%
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
- PEP is valuated rather expensively with a Price/Earnings ratio of 18.63.
- Compared to the rest of the industry, the Price/Earnings ratio of PEP is on the same level as its industry peers.
- PEP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 16.94, which indicates a correct valuation of PEP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. PEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 16.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEP indicates a slightly more expensive valuation: PEP is more expensive than 66.67% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, PEP is valued a bit more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.45 | ||
| EV/EBITDA | 13.67 |
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)43.89
PEG (5Y)2.29
EPS Next 2Y2.84%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
- PEP has a Yearly Dividend Yield of 3.88%. Purely for dividend investing, there may be better candidates out there.
- PEP's Dividend Yield is rather good when compared to the industry average which is at 2.61. PEP pays more dividend than 83.33% of the companies in the same industry.
- PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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
- PEP pays out 104.55% of its income as dividend. 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 2Y2.84%
EPS Next 3Y3.8%
FRA:PEP (1/21/2026, 5:20:15 PM)
124.64
+0.06 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-09 2025-10-09/bmo
Earnings (Next)02-02 2026-02-02/amc
Inst Owners79.43%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap170.43B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts69.66
Price Target138.4 (11.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend4.53
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)0.63%
PT rev (3m)2.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 16.94 | ||
| P/S | 2.16 | ||
| P/FCF | 29.45 | ||
| P/OCF | 17 | ||
| P/B | 10.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.67 |
EPS(TTM)6.69
EY5.37%
EPS(NY)7.36
Fwd EY5.9%
FCF(TTM)4.23
FCFY3.4%
OCF(TTM)7.33
OCFY5.88%
SpS57.6
BVpS12.09
TBVpS-8.92
PEG (NY)43.89
PEG (5Y)2.29
Graham Number42.66
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 | 3.6 |
F-Score5
WACC7.69%
ROIC/WACC1.99
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 Y0.42%
EPS Next 2Y2.84%
EPS Next 3Y3.8%
EPS Next 5Y3.75%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.39%
Revenue Next 2Y2.56%
Revenue Next 3Y2.74%
Revenue Next 5Y2.97%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.82%
EBIT Next 3Y11.16%
EBIT Next 5Y8.11%
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.
Can you provide the valuation status for PEPSICO INC?
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 are the PE and PB ratios of PEPSICO INC (PEP.DE) stock?
The Price/Earnings (PE) ratio for PEPSICO INC (PEP.DE) is 18.63 and the Price/Book (PB) ratio is 10.31.
How sustainable is the dividend of PEPSICO INC (PEP.DE) stock?
The dividend rating of PEPSICO INC (PEP.DE) is 5 / 10 and the dividend payout ratio is 104.55%.