PEPSICO INC (PEP.DE) Stock Fundamental Analysis
FRA:PEP - Deutsche Boerse Ag - US7134481081 - Common Stock - Currency: EUR
Taking everything into account, PEP scores 5 out of 10 in our fundamental rating. PEP was compared to 24 industry peers in the Beverages industry. PEP has an excellent profitability rating, but there are concerns on its financial health. PEP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PEP had positive earnings in the past year.
In the past year PEP had a positive cash flow from operations.
Each year in the past 5 years PEP has been profitable.
Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
PEP has a Return On Assets of 9.21%. This is amongst the best in the industry. PEP outperforms 87.50% of its industry peers.
PEP's Return On Equity of 50.95% is amongst the best of the industry. PEP outperforms 95.83% of its industry peers.
PEP's Return On Invested Capital of 16.68% is amongst the best of the industry. PEP outperforms 95.83% of its industry peers.
PEP had an Average Return On Invested Capital over the past 3 years of 15.79%. This is significantly above the industry average of 8.12%.
The 3 year average ROIC (15.79%) for PEP is below the current ROIC(16.68%), indicating increased profibility in the last year.
| 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
The Profit Margin of PEP (10.24%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
The Operating Margin of PEP (15.92%) is comparable to the rest of the industry.
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 (55.13%) 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 | 15.92% | ||
| 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
PEP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for PEP remains at a similar level compared to 1 year ago.
The number of shares outstanding for PEP has been reduced compared to 5 years ago.
The debt/assets ratio for PEP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.60 indicates that PEP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.60, PEP is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Debt to FCF ratio of PEP is 6.68, which is on the high side as it means it would take PEP, 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, PEP is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 2.14 is on the high side and indicates that PEP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.14, PEP is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 3.6 |
ROIC/WACC2.15
WACC7.74%
2.3 Liquidity
A Current Ratio of 0.83 indicates that PEP may have some problems paying its short term obligations.
The Current ratio of PEP (0.83) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.65 indicates that PEP may have some problems paying its short term obligations.
The Quick ratio of PEP (0.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PEP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.88%.
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.
Looking at the last year, PEP shows a decrease in Revenue. The Revenue has decreased by -0.38% in the last year.
PEP 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
PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.18% yearly.
Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y2.36%
EPS Next 2Y4.31%
EPS Next 3Y5%
EPS Next 5Y5.18%
Revenue Next Year-0.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.42%
Revenue Next 5Y4%
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 16.53, which indicates a correct valuation of PEP.
Based on the Price/Earnings ratio, PEP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PEP to the average of the S&P500 Index (23.99), we can say PEP is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.95, which indicates a correct valuation of PEP.
PEP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PEP is cheaper than 62.50% of the companies in the same industry.
PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than PEP, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as PEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.04 | ||
| EV/EBITDA | 11.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PEP may justify a higher PE ratio.
PEG (NY)7.01
PEG (5Y)2.03
EPS Next 2Y4.31%
EPS Next 3Y5%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 4.06%, which is a nice return.
Compared to an average industry Dividend Yield of 2.88, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 78.38% 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.
DP78.38%
EPS Next 2Y4.31%
EPS Next 3Y5%
FRA:PEP (5/8/2025, 2:37:03 PM)
116.85
+1.47 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.71%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap160.21B
Analysts67.14
Price Target143.23 (22.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend4.64
Dividend Growth(5Y)6.8%
DP78.38%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.81%
Min EPS beat(2)-1.54%
Max EPS beat(2)-0.08%
EPS beat(4)1
Avg EPS beat(4)0.73%
Min EPS beat(4)-1.54%
Max EPS beat(4)4.63%
EPS beat(8)5
Avg EPS beat(8)2.41%
EPS beat(12)9
Avg EPS beat(12)3.19%
EPS beat(16)12
Avg EPS beat(16)3.44%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)-0.14%
Revenue beat(8)1
Avg Revenue beat(8)-0.94%
Revenue beat(12)5
Avg Revenue beat(12)0.45%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-5.95%
PT rev (3m)-15.3%
EPS NQ rev (1m)-11.82%
EPS NQ rev (3m)-14.05%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-3.27%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 14.95 | ||
| P/S | 1.99 | ||
| P/FCF | 25.04 | ||
| P/OCF | 14.47 | ||
| P/B | 9.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.89 |
EPS(TTM)7.07
EY6.05%
EPS(NY)7.82
Fwd EY6.69%
FCF(TTM)4.67
FCFY3.99%
OCF(TTM)8.07
OCFY6.91%
SpS58.76
BVpS11.81
TBVpS-9.85
PEG (NY)7.01
PEG (5Y)2.03
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 | 3.6 |
F-Score6
WACC7.74%
ROIC/WACC2.15
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 Y2.36%
EPS Next 2Y4.31%
EPS Next 3Y5%
EPS Next 5Y5.18%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-1.81%
Revenue Next Year-0.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.42%
Revenue Next 5Y4%
EBIT growth 1Y4.95%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year23.96%
EBIT Next 3Y11.41%
EBIT Next 5Y8.71%
FCF growth 1Y36.44%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y18.71%
OCF growth 3Y2.49%
OCF growth 5Y5.33%