PEPSICO INC (PEP) Stock Fundamental Analysis

NASDAQ:PEP • US7134481081

167.2 USD
-1.95 (-1.15%)
At close: Feb 12, 2026
167.232 USD
+0.03 (+0.02%)
After Hours: 2/12/2026, 8:09:47 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 33 industry peers in the Beverages industry. While PEP belongs to the best of the industry regarding profitability, there are concerns on its financial health. PEP does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

7

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.
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

  • PEP's Return On Assets of 7.67% is fine compared to the rest of the industry. PEP outperforms 66.67% of its industry peers.
  • PEP has a better Return On Equity (40.38%) than 93.94% of its industry peers.
  • With an excellent Return On Invested Capital value of 16.14%, PEP belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for PEP is above the industry average of 11.48%.
  • 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

  • PEP's Profit Margin of 8.77% is fine compared to the rest of the industry. PEP outperforms 63.64% of its industry peers.
  • PEP's Profit Margin has declined in the last couple of years.
  • PEP has a better Operating Margin (15.87%) than 69.70% of its industry peers.
  • PEP's Operating Margin has been stable in the last couple of years.
  • PEP's Gross Margin of 54.46% is fine compared to the rest of the industry. PEP outperforms 66.67% of its industry peers.
  • PEP's Gross Margin has been stable in the last couple of years.
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. 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 less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, PEP has less shares outstanding
  • The debt/assets ratio for PEP is higher compared to a year ago.
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 3.82. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.82, PEP is doing good in the industry, outperforming 69.70% of the companies in the same industry.
  • 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.
  • PEP has a Debt to FCF ratio of 6.41. This is comparable to the rest of the industry: PEP outperforms 57.58% of its industry peers.
  • A Debt/Equity ratio of 2.07 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 2.07, PEP is doing worse than 90.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Altman-Z 3.82
ROIC/WACC2.06
WACC7.84%
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.
  • With a Current ratio value of 0.85, PEP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.67 indicates that PEP may have some problems paying its short term obligations.
  • PEP has a Quick ratio (0.67) which is comparable to the rest of the industry.
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. Growth

3.1 Past

  • The earnings per share for PEP have decreased by -0.12% in the last year.
  • The Earnings Per Share has been growing by 8.10% on average over the past years. This is quite good.
  • Looking at the last year, PEP shows a small growth in Revenue. The Revenue has grown by 2.25% in the last year.
  • The Revenue has been growing slightly by 5.94% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 5.08% 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 3.77% yearly.
EPS Next Y5.95%
EPS Next 2Y5.87%
EPS Next 3Y5.24%
EPS Next 5Y5.08%
Revenue Next Year3.92%
Revenue Next 2Y3.58%
Revenue Next 3Y3.7%
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. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.52, 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 27.67, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 19.36, which indicates a rather expensive current valuation of PEP.
  • PEP's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (27.69), we can say PEP is valued slightly cheaper.
Industry RankSector Rank
PE 20.52
Fwd PE 19.36
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

  • PEP's Enterprise Value to EBITDA is on the same level as the industry average.
  • PEP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 29.78
EV/EBITDA 14.73
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.
  • PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.45
PEG (5Y)2.53
EPS Next 2Y5.87%
EPS Next 3Y5.24%

More info and screens

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

6

5. Dividend

5.1 Amount

  • PEP has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
  • PEP's Dividend Yield is rather good when compared to the industry average which is at 1.66. PEP pays more dividend than 84.85% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, PEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.41%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 1 2 3 4 5

5.3 Sustainability

  • 92.69% of the earnings are spent on dividend by PEP. 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

PEPSICO INC

NASDAQ:PEP (2/12/2026, 8:09:47 PM)

After market: 167.232 +0.03 (+0.02%)

167.2

-1.95 (-1.15%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-03
Earnings (Next)04-22
Inst Owners79.43%
Inst Owner Change-2.42%
Ins Owners0.18%
Ins Owner Change1.7%
Market Cap228.50B
Revenue(TTM)93.92B
Net Income(TTM)8.24B
Analysts70.34
Price Target163.12 (-2.44%)
Short Float %1.59%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield 3.41%
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP92.69%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0.47%
PT rev (3m)1.64%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.51%
Valuation
Industry RankSector Rank
PE 20.52
Fwd PE 19.36
P/S 2.43
P/FCF 29.78
P/OCF 18.9
P/B 11.2
P/tB N/A
EV/EBITDA 14.73
EPS(TTM)8.15
EY4.87%
EPS(NY)8.64
Fwd EY5.16%
FCF(TTM)5.61
FCFY3.36%
OCF(TTM)8.84
OCFY5.29%
SpS68.73
BVpS14.93
TBVpS-9.93
PEG (NY)3.45
PEG (5Y)2.53
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 3.82
F-Score5
WACC7.84%
ROIC/WACC2.06
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 Year3.92%
Revenue Next 2Y3.58%
Revenue Next 3Y3.7%
Revenue Next 5Y3.77%
EBIT growth 1Y1.26%
EBIT growth 3Y6.08%
EBIT growth 5Y7.07%
EBIT Next Year32.46%
EBIT Next 3Y13.38%
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 20.52 and the Price/Book (PB) ratio is 11.2.


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%.