146.32 USD
-0.25 (-0.17%)
146.033 USD
-0.29 (-0.2%)
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 is valued expensive and 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.
- In the past 5 years PEP has always been profitable.
- Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
- PEP has a better Return On Assets (6.78%) than 60.61% of its industry peers.
- Looking at the Return On Equity, with a value of 37.26%, PEP belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- PEP has a Return On Invested Capital of 15.32%. This is amongst the best in the industry. PEP outperforms 84.85% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PEP is above the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 37.26% | ||
| ROIC | 15.32% |
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 (7.82%) which is comparable to the rest of the industry.
- PEP's Profit Margin has been stable in the last couple of years.
- PEP has a Operating Margin of 15.49%. This is in the better half of the industry: PEP outperforms 69.70% of its industry peers.
- PEP's Operating Margin has been stable in the last couple of years.
- PEP has a better Gross Margin (54.50%) than 66.67% 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 | 15.49% | ||
| PM (TTM) | 7.82% | ||
| GM | 54.5% |
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 3.61 indicates that PEP is not in any danger for bankruptcy at the moment.
- The Altman-Z score of PEP (3.61) is better than 66.67% of its industry peers.
- PEP has a debt to FCF ratio of 7.49. This is a slightly negative value and a sign of low solvency as PEP would need 7.49 years to pay back of all of its debts.
- PEP's Debt to FCF ratio of 7.49 is in line compared to the rest of the industry. PEP outperforms 54.55% of its industry peers.
- A Debt/Equity ratio of 2.28 is on the high side and indicates that PEP has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.28, 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 | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.96
WACC7.8%
2.3 Liquidity
- PEP has a Current Ratio of 0.91. 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 0.91, PEP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
- With a Quick ratio value of 0.72, PEP perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for PEP have decreased by -1.63% 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.
- PEP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.49%.
- PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)-1.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-0.87%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
3.2 Future
- PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.75% yearly.
- The Revenue is expected to grow by 2.97% on average over the next years.
EPS Next Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y3.75%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y2.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.64, the valuation of PEP can be described as rather expensive.
- 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 27.47, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 16.93 indicates a correct valuation of PEP.
- 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 rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.93 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as PEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 13.71 |
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)43.33
PEG (5Y)2.29
EPS Next 2Y2.9%
EPS Next 3Y3.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.88%, PEP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.77, PEP pays a better dividend. On top of this PEP pays more dividend than 93.94% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
- On average, the dividend of PEP grows each year by 6.80%, 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)6.8%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 104.55% 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.
DP104.55%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
146.32
-0.25 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-09 2025-10-09/bmo
Earnings (Next)02-02 2026-02-02/amc
Inst Owners79.43%
Inst Owner Change-0.18%
Ins Owners0.18%
Ins Owner Change1.7%
Market Cap200.07B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts69.66
Price Target162.35 (10.96%)
Short Float %1.56%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend5.27
Dividend Growth(5Y)6.8%
DP104.55%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)0.43%
Max EPS beat(2)3.41%
EPS beat(4)2
Avg EPS beat(4)0.59%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.81%
EPS beat(12)9
Avg EPS beat(12)2.53%
EPS beat(16)12
Avg EPS beat(16)2.86%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)1%
Revenue beat(8)1
Avg Revenue beat(8)-1.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)8
Avg Revenue beat(16)0.76%
PT rev (1m)1.25%
PT rev (3m)2.59%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.93 | ||
| P/S | 2.17 | ||
| P/FCF | 29.47 | ||
| P/OCF | 17.02 | ||
| P/B | 10.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.71 |
EPS(TTM)7.85
EY5.36%
EPS(NY)8.64
Fwd EY5.91%
FCF(TTM)4.96
FCFY3.39%
OCF(TTM)8.6
OCFY5.88%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)43.33
PEG (5Y)2.29
Graham Number50.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 37.26% | ||
| ROCE | 19.06% | ||
| ROIC | 15.32% | ||
| ROICexc | 17.32% | ||
| ROICexgc | 35.16% | ||
| OM | 15.49% | ||
| PM (TTM) | 7.82% | ||
| GM | 54.5% | ||
| FCFM | 7.35% |
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%
ROICexgc growth 3Y1.22%
ROICexgc 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 | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 147.96% | ||
| Cap/Sales | 5.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.56% | ||
| Profit Quality | 93.98% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.61 |
F-Score5
WACC7.8%
ROIC/WACC1.96
Cap/Depr(3y)181.31%
Cap/Depr(5y)176.2%
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)-1.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-0.87%
EPS Next Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y3.75%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y2.97%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.82%
EBIT Next 3Y11.16%
EBIT Next 5Y8.11%
FCF growth 1Y-2.29%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y-3.13%
OCF growth 3Y2.49%
OCF growth 5Y5.33%
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 18.64 and the Price/Book (PB) ratio is 10.32.
How sustainable is the dividend of PEPSICO INC (PEP) stock?
The dividend rating of PEPSICO INC (PEP) is 7 / 10 and the dividend payout ratio is 104.55%.