PEPSICO INC (PEP) Fundamental Analysis & Valuation
NASDAQ:PEP • US7134481081
Current stock price
157.67 USD
0 (0%)
Last:
This PEP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. PEP Profitability Analysis
1.1 Basic Checks
- In the past year PEP was profitable.
- In the past year PEP had a positive cash flow from operations.
- In the past 5 years PEP has always been profitable.
- PEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.89%, PEP is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 40.84%, PEP belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
- PEP's Return On Invested Capital of 16.11% is amongst the best of the industry. PEP outperforms 84.85% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PEP is above the industry average of 11.89%.
- The 3 year average ROIC (15.94%) for PEP is below the current ROIC(16.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 40.84% | ||
| ROIC | 16.11% |
ROA(3y)8.78%
ROA(5y)8.85%
ROE(3y)47.5%
ROE(5y)48.39%
ROIC(3y)15.94%
ROIC(5y)15.39%
1.3 Margins
- PEP has a Profit Margin of 9.15%. This is in the better half of the industry: PEP outperforms 60.61% of its industry peers.
- PEP's Profit Margin has declined in the last couple of years.
- PEP has a Operating Margin of 15.92%. This is in the better half of the industry: PEP outperforms 66.67% of its industry peers.
- PEP's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 54.38%, PEP is doing good in the industry, outperforming 69.70% 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 | 15.92% | ||
| PM (TTM) | 9.15% | ||
| GM | 54.38% |
OM growth 3Y3.16%
OM growth 5Y1.06%
PM growth 3Y-5.25%
PM growth 5Y-2.81%
GM growth 3Y0.62%
GM growth 5Y-0.16%
2. PEP Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PEP is creating value.
- Compared to 1 year ago, PEP has less shares outstanding
- PEP has less shares outstanding than it did 5 years ago.
- PEP has a worse debt/assets ratio than last year.
2.2 Solvency
- PEP has an Altman-Z score of 3.65. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
- PEP's Altman-Z score of 3.65 is fine compared to the rest of the industry. PEP outperforms 69.70% of its industry peers.
- The Debt to FCF ratio of PEP is 5.96, which is a neutral value as it means it would take PEP, 5.96 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 5.96, PEP is doing good in the industry, outperforming 60.61% of the companies in the same industry.
- A Debt/Equity ratio of 1.99 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 1.99, PEP is doing worse than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 3.65 |
ROIC/WACC2.05
WACC7.85%
2.3 Liquidity
- PEP has a Current Ratio of 0.90. 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 (0.90) than 72.73% of its industry peers.
- PEP has a Quick Ratio of 0.90. 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 Quick ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.72 |
3. PEP Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 3.11% over the past year.
- PEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.10% yearly.
- Looking at the last year, PEP shows a small growth in Revenue. The Revenue has grown by 4.29% in the last year.
- PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.
EPS 1Y (TTM)3.11%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%8.78%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%8.5%
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 4.96% on average per year.
- Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y6.9%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
EPS Next 5Y4.96%
Revenue Next Year5.3%
Revenue Next 2Y4.25%
Revenue Next 3Y4.1%
Revenue Next 5Y3.63%
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. PEP Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.04, which indicates a rather expensive current valuation of PEP.
- PEP's Price/Earnings ratio is in line with the industry average.
- PEP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.89, which is the current average of the S&P500 Index.
- PEP is valuated correctly with a Price/Forward Earnings ratio of 16.96.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP is on the same level as its industry peers.
- PEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
- PEP's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.38 | ||
| EV/EBITDA | 13.74 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)2.35
EPS Next 2Y6.79%
EPS Next 3Y6.87%
5. PEP Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.61%, PEP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.67, PEP pays a better dividend. On top of this PEP pays more dividend than 87.88% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
- On average, the dividend of PEP grows each year by 7.00%, which is quite nice.
- PEP has been paying a dividend for at least 10 years, so it has a reliable track record.
- PEP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 88.42% of the earnings are spent on dividend by PEP. This is not a sustainable payout ratio.
- PEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP88.42%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
PEP Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:PEP (4/20/2026, 10:16:08 AM)
157.67
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)04-16 2026-04-16/bmo
Earnings (Next)07-15 2026-07-15/bmo
Inst Owners79.74%
Inst Owner Change-4.53%
Ins Owners0.19%
Ins Owner Change6.06%
Market Cap215.53B
Revenue(TTM)95.45B
Net Income(TTM)8.73B
Analysts70.34
Price Target173.42 (9.99%)
Short Float %1.5%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP88.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06 2026-03-06 (1.4225)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.41%
Min EPS beat(2)0.01%
Max EPS beat(2)2.81%
EPS beat(4)4
Avg EPS beat(4)1.67%
Min EPS beat(4)0.01%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.22%
EPS beat(12)9
Avg EPS beat(12)2.17%
EPS beat(16)13
Avg EPS beat(16)2.82%
Revenue beat(2)2
Avg Revenue beat(2)0.96%
Min Revenue beat(2)0.28%
Max Revenue beat(2)1.64%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.4%
Revenue beat(12)4
Avg Revenue beat(12)-0.43%
Revenue beat(16)8
Avg Revenue beat(16)0.48%
PT rev (1m)0.23%
PT rev (3m)6.82%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 16.96 | ||
| P/S | 2.26 | ||
| P/FCF | 24.38 | ||
| P/OCF | 16.45 | ||
| P/B | 10.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.74 |
EPS(TTM)8.28
EY5.25%
EPS(NY)9.29
Fwd EY5.89%
FCF(TTM)6.47
FCFY4.1%
OCF(TTM)9.58
OCFY6.08%
SpS69.83
BVpS15.64
TBVpS-9.35
PEG (NY)2.76
PEG (5Y)2.35
Graham Number53.9841 (-65.76%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 40.84% | ||
| ROCE | 19.95% | ||
| ROIC | 16.11% | ||
| ROICexc | 18.78% | ||
| ROICexgc | 39.37% | ||
| OM | 15.92% | ||
| PM (TTM) | 9.15% | ||
| GM | 54.38% | ||
| FCFM | 9.26% |
ROA(3y)8.78%
ROA(5y)8.85%
ROE(3y)47.5%
ROE(5y)48.39%
ROIC(3y)15.94%
ROIC(5y)15.39%
ROICexc(3y)18.34%
ROICexc(5y)17.38%
ROICexgc(3y)38.14%
ROICexgc(5y)38.28%
ROCE(3y)20.53%
ROCE(5y)19.57%
ROICexgc growth 3Y-2.23%
ROICexgc growth 5Y-1.52%
ROICexc growth 3Y1.99%
ROICexc growth 5Y4.59%
OM growth 3Y3.16%
OM growth 5Y1.06%
PM growth 3Y-5.25%
PM growth 5Y-2.81%
GM growth 3Y0.62%
GM growth 5Y-0.16%
F-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 5.96 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 121.37% | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.05% | ||
| Profit Quality | 101.25% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.65 |
F-Score6
WACC7.85%
ROIC/WACC2.05
Cap/Depr(3y)161.13%
Cap/Depr(5y)168.5%
Cap/Sales(3y)5.51%
Cap/Sales(5y)5.67%
Profit Quality(3y)85.16%
Profit Quality(5y)82.03%
High Growth Momentum
Growth
EPS 1Y (TTM)3.11%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%8.78%
EPS Next Y6.9%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
EPS Next 5Y4.96%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%8.5%
Revenue Next Year5.3%
Revenue Next 2Y4.25%
Revenue Next 3Y4.1%
Revenue Next 5Y3.63%
EBIT growth 1Y4.27%
EBIT growth 3Y6.08%
EBIT growth 5Y7.07%
EBIT Next Year33.67%
EBIT Next 3Y13.94%
EBIT Next 5Y9.35%
FCF growth 1Y22.09%
FCF growth 3Y11.04%
FCF growth 5Y3.78%
OCF growth 1Y2.41%
OCF growth 3Y3.79%
OCF growth 5Y2.64%
PEPSICO INC / PEP Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for PEPSICO INC?
ChartMill assigns a fundamental rating of 5 / 10 to PEP.
Can you provide the valuation status for PEPSICO INC?
ChartMill assigns a valuation rating of 4 / 10 to PEPSICO INC (PEP). This can be considered as Fairly Valued.
What is the profitability of PEP stock?
PEPSICO INC (PEP) has a profitability rating of 7 / 10.
Can you provide the financial health for PEP stock?
The financial health rating of PEPSICO INC (PEP) is 4 / 10.
Is the dividend of PEPSICO INC sustainable?
The dividend rating of PEPSICO INC (PEP) is 6 / 10 and the dividend payout ratio is 88.42%.