PEPSICO INC (PEP.DE) Stock Fundamental Analysis
FRA:PEP - US7134481081 - Common Stock
121.36 EUR
-0.46 (-0.38%)
PEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 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
PEP had positive earnings in the past year.
PEP had a positive operating cash flow in the past year.
Each year in the past 5 years PEP has been profitable.
PEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PEP has a better Return On Assets (7.17%) than 87.50% of its industry peers.
The Return On Equity of PEP (40.99%) is better than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.72%, PEP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PEP is significantly above the industry average of 7.87%.
The last Return On Invested Capital (16.72%) for PEP is above the 3 year average (15.79%), which is a sign of increasing profitability.
| 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 in line with its industry peers.
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 54.17% of 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 54.92% is in line compared to the rest of the industry. PEP outperforms 58.33% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PEP is creating value.
PEP has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.53 indicates that PEP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.53, 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 7.27, which is on the high side as it means it would take PEP, 7.27 years of fcf income to pay off all of its debts.
PEP has a better Debt to FCF ratio (7.27) than 62.50% of its industry peers.
PEP has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
PEP has a Debt to Equity ratio of 2.14. This is amonst the worse of the industry: PEP underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 3.53 |
ROIC/WACC2.23
WACC7.49%
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.
PEP has a worse Current ratio (0.78) than 70.83% of its industry peers.
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.
The Quick ratio of PEP (0.60) is comparable to the rest of the 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.
PEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
Looking at the last year, PEP shows a decrease in Revenue. The Revenue has decreased by -0.33% in the last 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
Based on estimates for the next years, PEP will show a small growth in Earnings Per Share. The EPS will grow by 3.34% on average per year.
The Revenue is expected to grow by 3.19% on average over the next years.
EPS Next Y-0.7%
EPS Next 2Y2.43%
EPS Next 3Y3.58%
EPS Next 5Y3.34%
Revenue Next Year1.06%
Revenue Next 2Y2.09%
Revenue Next 3Y2.5%
Revenue Next 5Y3.19%
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 18.11 indicates a rather expensive valuation of PEP.
Compared to the rest of the industry, the Price/Earnings ratio of PEP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.03. PEP is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.65, the valuation of PEP can be described as correct.
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 22.54. PEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 16.65 |
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 62.50% of the companies listed in the same industry.
PEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.62 | ||
| EV/EBITDA | 13.05 |
4.3 Compensation for Growth
The decent profitability rating of PEP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.23
EPS Next 2Y2.43%
EPS Next 3Y3.58%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.87%.
PEP's Dividend Yield is a higher than the industry average which is at 2.88.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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 2Y2.43%
EPS Next 3Y3.58%
FRA:PEP (9/10/2025, 7:00:00 PM)
121.36
-0.46 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.76%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap166.15B
Analysts67.86
Price Target136.07 (12.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend4.5
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)4.73%
PT rev (3m)-0.03%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-6.93%
EPS NY rev (1m)1.75%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 16.65 | ||
| P/S | 2.13 | ||
| P/FCF | 27.62 | ||
| P/OCF | 16.01 | ||
| P/B | 10.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.05 |
EPS(TTM)6.7
EY5.52%
EPS(NY)7.29
Fwd EY6.01%
FCF(TTM)4.39
FCFY3.62%
OCF(TTM)7.58
OCFY6.25%
SpS57.06
BVpS11.46
TBVpS-9.99
PEG (NY)N/A
PEG (5Y)2.23
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
WACC7.49%
ROIC/WACC2.23
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-0.7%
EPS Next 2Y2.43%
EPS Next 3Y3.58%
EPS Next 5Y3.34%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%1%
Revenue Next Year1.06%
Revenue Next 2Y2.09%
Revenue Next 3Y2.5%
Revenue Next 5Y3.19%
EBIT growth 1Y0.64%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.12%
EBIT Next 3Y10.64%
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%