PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
119.6 EUR
-2.04 (-1.68%)
Taking everything into account, PEP scores 4 out of 10 in our fundamental rating. PEP was compared to 26 industry peers in the Beverages industry. While PEP belongs to the best of the industry regarding profitability, there are concerns on its financial health. PEP is valued expensive and it does not seem to be growing.
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.
In the past 5 years PEP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.17%, PEP belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
The Return On Equity of PEP (40.99%) is better than 88.46% of its industry peers.
PEP's Return On Invested Capital of 16.72% is amongst the best of the industry. PEP outperforms 92.31% 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 8.66%.
The 3 year average ROIC (15.79%) for PEP is below the current ROIC(16.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 40.99% | ||
| ROIC | 16.72% |
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
PEP has a Profit Margin (8.23%) which 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 15.63%. This is comparable to the rest of the industry: PEP outperforms 46.15% of its industry peers.
PEP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 54.92%, PEP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
PEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.63% | ||
| PM (TTM) | 8.23% | ||
| GM | 54.92% |
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.
The number of shares outstanding for PEP has been reduced compared to 5 years ago.
Compared to 1 year ago, PEP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.53 indicates that PEP is not in any danger for bankruptcy at the moment.
The Altman-Z score of PEP (3.53) is better than 80.77% of its industry peers.
PEP has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as PEP would need 7.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.27, PEP is in line with its industry, outperforming 53.85% of the companies in the same industry.
PEP has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
PEP's Debt to Equity ratio of 2.14 is on the low side compared to the rest of the industry. PEP is outperformed by 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 3.53 |
ROIC/WACC2.22
WACC7.54%
2.3 Liquidity
PEP has a Current Ratio of 0.78. This is a bad value and indicates that PEP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.78, PEP is doing worse than 76.92% of the companies in the same industry.
PEP has a Quick Ratio of 0.78. This is a bad value and indicates that PEP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.60, PEP is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for PEP have decreased by -0.63% 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.
The Revenue has decreased by -0.33% in the past year.
The Revenue has been growing slightly by 6.46% on average over the past years.
EPS 1Y (TTM)-0.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-7.02%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%1%
3.2 Future
PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.34% yearly.
The Revenue is expected to grow by 3.19% on average over the next years.
EPS Next Y-0.63%
EPS Next 2Y2.61%
EPS Next 3Y3.64%
EPS Next 5Y3.34%
Revenue Next Year1.04%
Revenue Next 2Y2.08%
Revenue Next 3Y2.48%
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.
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 17.82, which indicates a rather expensive current valuation of PEP.
The rest of the industry has a similar Price/Earnings ratio as PEP.
Compared to an average S&P500 Price/Earnings ratio of 27.86, PEP is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.33 indicates a correct valuation of PEP.
PEP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, PEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than the industry average as 65.38% 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 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.2 | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.19
EPS Next 2Y2.61%
EPS Next 3Y3.64%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 4.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.01, PEP pays a better dividend. On top of this PEP pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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 98.89% 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.
DP98.89%
EPS Next 2Y2.61%
EPS Next 3Y3.64%
FRA:PEP (10/6/2025, 3:55:49 PM)
119.6
-2.04 (-1.68%)
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 Cap163.74B
Analysts67.86
Price Target134.95 (12.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend4.49
Dividend Growth(5Y)6.8%
DP98.89%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.01%
Min EPS beat(2)-1.39%
Max EPS beat(2)3.41%
EPS beat(4)1
Avg EPS beat(4)0.46%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)2.18%
EPS beat(12)9
Avg EPS beat(12)2.98%
EPS beat(16)12
Avg EPS beat(16)2.97%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)1%
Revenue beat(8)1
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)0.31%
Revenue beat(16)9
Avg Revenue beat(16)0.99%
PT rev (1m)-0.82%
PT rev (3m)2.25%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-4.2%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 16.33 | ||
| P/S | 2.09 | ||
| P/FCF | 27.2 | ||
| P/OCF | 15.76 | ||
| P/B | 10.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.03 |
EPS(TTM)6.71
EY5.61%
EPS(NY)7.32
Fwd EY6.12%
FCF(TTM)4.4
FCFY3.68%
OCF(TTM)7.59
OCFY6.34%
SpS57.11
BVpS11.46
TBVpS-10
PEG (NY)N/A
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 40.99% | ||
| ROCE | 20.8% | ||
| ROIC | 16.72% | ||
| ROICexc | 18.91% | ||
| ROICexgc | 43.5% | ||
| OM | 15.63% | ||
| PM (TTM) | 8.23% | ||
| GM | 54.92% | ||
| FCFM | 7.7% |
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-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 7.27 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 129.26% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.58% | ||
| Profit Quality | 93.56% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 3.53 |
F-Score5
WACC7.54%
ROIC/WACC2.22
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)-0.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-7.02%
EPS Next Y-0.63%
EPS Next 2Y2.61%
EPS Next 3Y3.64%
EPS Next 5Y3.34%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%1%
Revenue Next Year1.04%
Revenue Next 2Y2.08%
Revenue Next 3Y2.48%
Revenue Next 5Y3.19%
EBIT growth 1Y0.64%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.12%
EBIT Next 3Y10.68%
EBIT Next 5Y7.49%
FCF growth 1Y23.32%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y11.32%
OCF growth 3Y2.49%
OCF growth 5Y5.33%