PEPSICO INC (PEP) Stock Fundamental Analysis
USA - NASDAQ:PEP - US7134481081 - Common Stock
139.885 USD
+1.04 (+0.75%)
Overall PEP gets a fundamental rating of 5 out of 10. We evaluated PEP against 33 industry peers in the Beverages industry. While PEP has a great profitability rating, there are quite some concerns on its financial health. PEP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PEP was profitable.
In the past year PEP had a positive cash flow from operations.
PEP had positive earnings in each of the past 5 years.
In the past 5 years PEP always reported a positive cash flow from operatings.
1.2 Ratios
PEP has a Return On Assets of 7.17%. This is in the better half of the industry: PEP outperforms 66.67% of its industry peers.
With an excellent Return On Equity value of 40.99%, PEP belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
PEP has a Return On Invested Capital of 16.72%. This is amongst the best in the industry. PEP outperforms 87.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEP is significantly above the industry average of 10.78%.
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's Profit Margin of 8.23% is fine compared to the rest of the industry. PEP outperforms 60.61% 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 15.63%, PEP is in the better half of the industry, outperforming 66.67% 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 of 54.92%. This is in the better half of the industry: PEP outperforms 69.70% of its industry peers.
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 | 15.63% | ||
| 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.
The number of shares outstanding for PEP remains at a similar level compared to 1 year ago.
PEP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PEP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.49 indicates that PEP is not in any danger for bankruptcy at the moment.
PEP has a Altman-Z score of 3.49. This is in the better half of the industry: PEP outperforms 66.67% of its industry peers.
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.
The Debt to FCF ratio of PEP (7.27) is comparable to the rest of the industry.
PEP has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.14, PEP is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 3.49 |
ROIC/WACC2.18
WACC7.67%
2.3 Liquidity
A Current Ratio of 0.78 indicates that PEP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, PEP is doing worse than 81.82% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that PEP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, PEP is doing worse than 75.76% 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.
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.
PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
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
The Earnings Per Share is expected to grow by 3.34% on average over the next years.
PEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
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
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
Based on the Price/Earnings ratio of 17.77, the valuation of PEP can be described as rather expensive.
Based on the Price/Earnings ratio, PEP is valued a bit cheaper than 60.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.91, PEP is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.28, the valuation of PEP can be described as correct.
PEP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.30. PEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
PEP's Enterprise Value to EBITDA ratio is in line with the industry average.
PEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.11 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
PEP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.19
EPS Next 2Y2.61%
EPS Next 3Y3.64%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 4.00%.
PEP's Dividend Yield is rather good when compared to the industry average which is at 2.98. PEP pays more dividend than 87.88% of the companies in the same industry.
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% |
5.2 History
The dividend of PEP is nicely growing with an annual growth rate of 6.80%!
PEP has paid a dividend for at least 10 years, which is a reliable track record.
PEP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.8%
Div Incr Years34
Div Non Decr Years34
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%
NASDAQ:PEP (10/9/2025, 9:43:08 AM)
139.885
+1.04 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.94%
Inst Owner Change-0.01%
Ins Owners0.17%
Ins Owner Change0.7%
Market Cap191.51B
Analysts67.86
Price Target158.25 (13.13%)
Short Float %1.47%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend5.27
Dividend Growth(5Y)6.8%
DP98.89%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)0.59%
PT rev (3m)4.18%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-4.15%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.28 | ||
| P/S | 2.09 | ||
| P/FCF | 27.11 | ||
| P/OCF | 15.71 | ||
| P/B | 10.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.74 |
EPS(TTM)7.87
EY5.63%
EPS(NY)8.59
Fwd EY6.14%
FCF(TTM)5.16
FCFY3.69%
OCF(TTM)8.9
OCFY6.36%
SpS67.01
BVpS13.45
TBVpS-11.73
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 | 3.49 |
F-Score5
WACC7.67%
ROIC/WACC2.18
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%