PEPSICO INC (PEP) Fundamental Analysis & Valuation

NASDAQ:PEP • US7134481081

159.43 USD
-1.27 (-0.79%)
At close: Mar 6, 2026
158.524 USD
-0.91 (-0.57%)
After Hours: 3/6/2026, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This PEP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall PEP gets a fundamental rating of 4 out of 10. We evaluated PEP against 33 industry peers in the Beverages industry. PEP has an excellent profitability rating, but there are concerns on its financial health. PEP has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

7

1. PEP Profitability Analysis

1.1 Basic Checks

  • In the past year PEP was profitable.
  • PEP had a positive operating cash flow in the past year.
  • Each year in the past 5 years PEP has been profitable.
  • In the past 5 years PEP always reported a positive cash flow from operatings.
PEP Yearly Net Income VS EBIT VS OCF VS FCFPEP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.67%, PEP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • PEP's Return On Equity of 40.38% is amongst the best of the industry. PEP outperforms 93.94% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 16.14%, PEP belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
  • PEP had an Average Return On Invested Capital over the past 3 years of 15.94%. This is above the industry average of 11.62%.
  • The 3 year average ROIC (15.94%) for PEP is below the current ROIC(16.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.67%
ROE 40.38%
ROIC 16.14%
ROA(3y)8.78%
ROA(5y)8.85%
ROE(3y)47.5%
ROE(5y)48.39%
ROIC(3y)15.94%
ROIC(5y)15.39%
PEP Yearly ROA, ROE, ROICPEP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • The Profit Margin of PEP (8.77%) is better than 60.61% of its industry peers.
  • PEP's Profit Margin has declined in the last couple of years.
  • With a decent Operating Margin value of 15.87%, PEP is doing good in the industry, outperforming 69.70% of the companies in the same industry.
  • In the last couple of years the Operating Margin of PEP has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 54.46%, PEP is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
  • In the last couple of years the Gross Margin of PEP has remained more or less at the same level.
Industry RankSector Rank
OM 15.87%
PM (TTM) 8.77%
GM 54.46%
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%
PEP Yearly Profit, Operating, Gross MarginsPEP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. PEP Health Analysis

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.
  • PEP has less shares outstanding than it did 1 year ago.
  • PEP has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, PEP has a worse debt to assets ratio.
PEP Yearly Shares OutstandingPEP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
PEP Yearly Total Debt VS Total AssetsPEP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • PEP has an Altman-Z score of 3.74. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of PEP (3.74) is better than 69.70% of its industry peers.
  • The Debt to FCF ratio of PEP is 6.41, which is on the high side as it means it would take PEP, 6.41 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 6.41, PEP is in line with its industry, outperforming 57.58% of the companies in the same industry.
  • PEP has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
  • PEP has a Debt to Equity ratio of 2.07. This is amonst the worse of the industry: PEP underperforms 87.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Altman-Z 3.74
ROIC/WACC2.08
WACC7.77%
PEP Yearly LT Debt VS Equity VS FCFPEP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • PEP has a Current Ratio of 0.85. 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 0.85, PEP is doing worse than 72.73% of the companies in the same industry.
  • A Quick Ratio of 0.67 indicates that PEP may have some problems paying its short term obligations.
  • PEP has a Quick ratio of 0.67. This is in the lower half of the industry: PEP underperforms 60.61% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.67
PEP Yearly Current Assets VS Current LiabilitesPEP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. PEP Growth Analysis

3.1 Past

  • PEP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.12%.
  • PEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.10% yearly.
  • PEP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.25%.
  • PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.
EPS 1Y (TTM)-0.12%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%15.31%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%5.61%

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 5.08% on average per year.
  • The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y5.95%
EPS Next 2Y5.87%
EPS Next 3Y5.24%
EPS Next 5Y5.08%
Revenue Next Year5.42%
Revenue Next 2Y4.29%
Revenue Next 3Y4.07%
Revenue Next 5Y3.77%

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.
PEP Yearly Revenue VS EstimatesPEP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
PEP Yearly EPS VS EstimatesPEP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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Find the best growth stocksShow best growing peers

3

4. PEP Valuation Analysis

4.1 Price/Earnings Ratio

  • PEP is valuated rather expensively with a Price/Earnings ratio of 19.56.
  • PEP's Price/Earnings is on the same level as the industry average.
  • PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
  • Based on the Price/Forward Earnings ratio of 18.46, the valuation of PEP can be described as rather expensive.
  • PEP's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 24.57. PEP is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 19.56
Fwd PE 18.46
PEP Price Earnings VS Forward Price EarningsPEP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEP is on the same level as its industry peers.
  • PEP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 28.4
EV/EBITDA 14.1
PEP Per share dataPEP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of PEP may justify a higher PE ratio.
PEG (NY)3.29
PEG (5Y)2.41
EPS Next 2Y5.87%
EPS Next 3Y5.24%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. PEP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.54%, PEP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.81, PEP pays a bit more dividend than its industry peers.
  • PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.54%

5.2 History

  • The dividend of PEP is nicely growing with an annual growth rate of 7.00%!
  • 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)7%
Div Incr Years34
Div Non Decr Years34
PEP Yearly Dividends per sharePEP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • PEP pays out 92.69% 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.
DP92.69%
EPS Next 2Y5.87%
EPS Next 3Y5.24%
PEP Yearly Income VS Free CF VS DividendPEP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
PEP Dividend Payout.PEP Dividend Payout, showing the Payout Ratio.PEP Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

PEP Fundamentals: All Metrics, Ratios and Statistics

PEPSICO INC

NASDAQ:PEP (3/6/2026, 8:00:00 PM)

After market: 158.524 -0.91 (-0.57%)

159.43

-1.27 (-0.79%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-03
Earnings (Next)04-22
Inst Owners79.78%
Inst Owner Change0.13%
Ins Owners0.18%
Ins Owner Change1.7%
Market Cap217.89B
Revenue(TTM)93.92B
Net Income(TTM)8.24B
Analysts70.34
Price Target173.02 (8.52%)
Short Float %2.18%
Short Ratio3.46
Dividend
Industry RankSector Rank
Dividend Yield 3.54%
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP92.69%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.22%
Min EPS beat(2)0.01%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)0.61%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.49%
EPS beat(12)9
Avg EPS beat(12)2.51%
EPS beat(16)13
Avg EPS beat(16)2.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)1%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)6.57%
PT rev (3m)7.87%
EPS NQ rev (1m)-2.43%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.97%
Valuation
Industry RankSector Rank
PE 19.56
Fwd PE 18.46
P/S 2.32
P/FCF 28.4
P/OCF 18.03
P/B 10.68
P/tB N/A
EV/EBITDA 14.1
EPS(TTM)8.15
EY5.11%
EPS(NY)8.64
Fwd EY5.42%
FCF(TTM)5.61
FCFY3.52%
OCF(TTM)8.84
OCFY5.55%
SpS68.73
BVpS14.93
TBVpS-9.93
PEG (NY)3.29
PEG (5Y)2.41
Graham Number52.33
Profitability
Industry RankSector Rank
ROA 7.67%
ROE 40.38%
ROCE 19.98%
ROIC 16.14%
ROICexc 18.5%
ROICexgc 38.69%
OM 15.87%
PM (TTM) 8.77%
GM 54.46%
FCFM 8.17%
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-Score5
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Debt/EBITDA 2.31
Cap/Depr 127.93%
Cap/Sales 4.7%
Interest Coverage 8.53
Cash Conversion 65.83%
Profit Quality 93.11%
Current Ratio 0.85
Quick Ratio 0.67
Altman-Z 3.74
F-Score5
WACC7.77%
ROIC/WACC2.08
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)-0.12%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%15.31%
EPS Next Y5.95%
EPS Next 2Y5.87%
EPS Next 3Y5.24%
EPS Next 5Y5.08%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%5.61%
Revenue Next Year5.42%
Revenue Next 2Y4.29%
Revenue Next 3Y4.07%
Revenue Next 5Y3.77%
EBIT growth 1Y1.26%
EBIT growth 3Y6.08%
EBIT growth 5Y7.07%
EBIT Next Year33.72%
EBIT Next 3Y13.97%
EBIT Next 5Y9.48%
FCF growth 1Y6.72%
FCF growth 3Y11.04%
FCF growth 5Y3.78%
OCF growth 1Y-3.36%
OCF growth 3Y3.79%
OCF growth 5Y2.64%

PEPSICO INC / PEP FAQ

Can you provide the ChartMill fundamental rating for PEPSICO INC?

ChartMill assigns a fundamental rating of 4 / 10 to PEP.


Can you provide the valuation status for PEPSICO INC?

ChartMill assigns a valuation rating of 3 / 10 to PEPSICO INC (PEP). This can be considered as Overvalued.


Can you provide the profitability details for PEPSICO INC?

PEPSICO INC (PEP) has a profitability rating of 7 / 10.


What are the PE and PB ratios of PEPSICO INC (PEP) stock?

The Price/Earnings (PE) ratio for PEPSICO INC (PEP) is 19.56 and the Price/Book (PB) ratio is 10.68.


How sustainable is the dividend of PEPSICO INC (PEP) stock?

The dividend rating of PEPSICO INC (PEP) is 6 / 10 and the dividend payout ratio is 92.69%.