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 some minor concerns on its financial health. PEP has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally PEP also has an excellent dividend rating.
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.
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
The Return On Assets of PEP (9.21%) is better than 87.50% of its industry peers.
PEP has a Return On Equity of 50.95%. This is amongst the best in the industry. PEP outperforms 95.83% of its industry peers.
The Return On Invested Capital of PEP (16.68%) is better than 95.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEP is significantly above the industry average of 7.67%.
The last Return On Invested Capital (16.68%) for PEP is above the 3 year average (15.79%), which is a sign of increasing profitability.
| 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
PEP has a better Profit Margin (10.24%) than 70.83% of its industry peers.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
Looking at the Operating Margin, with a value of 15.92%, PEP is in line with its industry, outperforming 50.00% of the companies in the same industry.
PEP's Operating Margin has been stable in the last couple of years.
PEP has a Gross Margin (55.13%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PEP has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PEP is creating some 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.
PEP has a worse debt/assets ratio than last year.
2.2 Solvency
PEP has an Altman-Z score of 3.59. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PEP (3.59) is better than 83.33% of its industry peers.
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 the better half of the industry, outperforming 62.50% 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.
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 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.79
WACC9.33%
2.3 Liquidity
A Current Ratio of 0.83 indicates that PEP may have some problems paying its short term obligations.
PEP has a worse Current ratio (0.83) than 66.67% of its industry peers.
PEP has a Quick Ratio of 0.83. This is a bad value and indicates that PEP is not financially healthy enough and could expect problems in meeting 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
The Earnings Per Share has been growing slightly by 3.88% over the past 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.
Looking at the last year, PEP shows a decrease in Revenue. The Revenue has decreased by -0.38% in the last 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)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.
PEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y-2.24%
EPS Next 2Y1.82%
EPS Next 3Y3.59%
EPS Next 5Y5.18%
Revenue Next Year-0.27%
Revenue Next 2Y1.35%
Revenue Next 3Y2.07%
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.
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
A Price/Earnings ratio of 16.23 indicates a correct valuation of PEP.
Based on the Price/Earnings ratio, PEP is valued a bit cheaper than 70.83% of the companies in the same industry.
When comparing the Price/Earnings ratio of PEP to the average of the S&P500 Index (26.52), we can say PEP is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.40 indicates a correct valuation of PEP.
PEP's Price/Forward Earnings ratio is in line with the industry average.
PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PEP.
PEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.58 | ||
| EV/EBITDA | 11.85 |
4.3 Compensation for Growth
PEP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2
EPS Next 2Y1.82%
EPS Next 3Y3.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.31%, PEP is a good candidate for dividend investing.
The stock price of PEP dropped by -20.84% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.86, PEP pays a better dividend. On top of this PEP pays more dividend than 87.50% of the companies listed in the same industry.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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 78.38% 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.
DP78.38%
EPS Next 2Y1.82%
EPS Next 3Y3.59%
FRA:PEP (6/6/2025, 7:00:00 PM)
114.08
-0.16 (-0.14%)
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 Cap156.41B
Analysts67.14
Price Target136.11 (19.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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)-0.74%
Min EPS beat(2)-1.39%
Max EPS beat(2)-0.08%
EPS beat(4)1
Avg EPS beat(4)0.77%
Min EPS beat(4)-1.39%
Max EPS beat(4)4.63%
EPS beat(8)5
Avg EPS beat(8)2.43%
EPS beat(12)9
Avg EPS beat(12)3.2%
EPS beat(16)12
Avg EPS beat(16)3.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)-0.16%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)5
Avg Revenue beat(12)0.45%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-4.97%
PT rev (3m)-19.51%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-11.89%
EPS NY rev (1m)-4.49%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 15.4 | ||
| P/S | 1.95 | ||
| P/FCF | 24.58 | ||
| P/OCF | 14.21 | ||
| P/B | 9.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.85 |
EPS(TTM)7.03
EY6.16%
EPS(NY)7.41
Fwd EY6.49%
FCF(TTM)4.64
FCFY4.07%
OCF(TTM)8.03
OCFY7.04%
SpS58.44
BVpS11.74
TBVpS-9.79
PEG (NY)N/A
PEG (5Y)2
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 | 3.59 |
F-Score6
WACC9.33%
ROIC/WACC1.79
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 Y-2.24%
EPS Next 2Y1.82%
EPS Next 3Y3.59%
EPS Next 5Y5.18%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-1.81%
Revenue Next Year-0.27%
Revenue Next 2Y1.35%
Revenue Next 3Y2.07%
Revenue Next 5Y4%
EBIT growth 1Y4.95%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year20.6%
EBIT Next 3Y10.35%
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%