PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PEP - US7134481081 - Common Stock
122.8 EUR
-2.98 (-2.37%)
Overall PEP gets a fundamental rating of 4 out of 10. We evaluated PEP against 30 industry peers in the Beverages industry. While PEP belongs to the best of the industry regarding profitability, there are some minor 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.
PEP had a positive operating cash flow in the past year.
Each year in the past 5 years PEP has 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 86.67% of its industry peers.
PEP has a better Return On Equity (37.26%) than 93.33% of its industry peers.
PEP has a Return On Invested Capital of 15.32%. This is amongst the best in the industry. PEP outperforms 96.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEP is significantly above the industry average of 8.33%.
| 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
With a Profit Margin value of 7.82%, PEP perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
PEP's Profit Margin has been stable in the last couple of years.
PEP has a Operating Margin (15.49%) which is comparable to the rest of the industry.
PEP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 54.50%, PEP is in line with its industry, outperforming 56.67% 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 | 15.49% | ||
| 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
PEP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PEP has about the same amount of shares outstanding.
Compared to 5 years ago, PEP has less shares outstanding
The debt/assets ratio for PEP is higher compared to a year ago.
2.2 Solvency
PEP has an Altman-Z score of 3.59. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PEP (3.59) is better than 83.33% 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.
Looking at the Debt to FCF ratio, with a value of 7.49, PEP is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 2.28 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 2.28, PEP is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.59 |
ROIC/WACC2.02
WACC7.58%
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.
The Current ratio of PEP (0.91) is worse than 66.67% of its industry peers.
PEP has a Quick 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.
PEP has a better Quick ratio (0.72) than 66.67% of its industry peers.
| 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.
The Revenue has been growing slightly by 0.49% in the past year.
The Revenue has been growing slightly by 6.46% on average over the past years.
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 4.04% yearly.
The Revenue is expected to grow by 3.19% on average over the next years.
EPS Next Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y4.04%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y3.19%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.44, the valuation of PEP can be described as rather expensive.
PEP's Price/Earnings ratio is in line with the industry average.
PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
PEP is valuated correctly with a Price/Forward Earnings ratio of 16.75.
PEP's Price/Forward Earnings ratio is in line with the industry average.
PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEP indicates a slightly more expensive valuation: PEP is more expensive than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.15 | ||
| EV/EBITDA | 13.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PEP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PEP may justify a higher PE ratio.
PEG (NY)42.87
PEG (5Y)2.27
EPS Next 2Y2.9%
EPS Next 3Y3.86%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.74, PEP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
On average, the dividend of PEP grows each year by 6.80%, which is quite nice.
Dividend Growth(5Y)6.8%
Div Incr Years6
Div Non Decr Years6
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%
FRA:PEP (12/23/2025, 7:00:00 PM)
122.8
-2.98 (-2.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap167.91B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target139.52 (13.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend4.5
Dividend Growth(5Y)6.8%
DP104.55%
Div Incr Years6
Div Non Decr Years6
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)0.4%
PT rev (3m)3.84%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 16.75 | ||
| P/S | 2.14 | ||
| P/FCF | 29.15 | ||
| P/OCF | 16.84 | ||
| P/B | 10.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.56 |
EPS(TTM)6.66
EY5.42%
EPS(NY)7.33
Fwd EY5.97%
FCF(TTM)4.21
FCFY3.43%
OCF(TTM)7.29
OCFY5.94%
SpS57.32
BVpS12.03
TBVpS-8.88
PEG (NY)42.87
PEG (5Y)2.27
Graham Number42.46
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 | 3.59 |
F-Score5
WACC7.58%
ROIC/WACC2.02
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 5Y4.04%
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 5Y3.19%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.76%
EBIT Next 3Y10.86%
EBIT Next 5Y8.64%
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.DE FAQ
Can you provide the ChartMill fundamental rating for PEPSICO INC?
ChartMill assigns a fundamental rating of 4 / 10 to PEP.DE.
What is the valuation status for PEP stock?
ChartMill assigns a valuation rating of 2 / 10 to PEPSICO INC (PEP.DE). This can be considered as Overvalued.
Can you provide the profitability details for PEPSICO INC?
PEPSICO INC (PEP.DE) has a profitability rating of 7 / 10.
What is the valuation of PEPSICO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PEPSICO INC (PEP.DE) is 18.44 and the Price/Book (PB) ratio is 10.21.
Can you provide the dividend sustainability for PEP stock?
The dividend rating of PEPSICO INC (PEP.DE) is 4 / 10 and the dividend payout ratio is 104.55%.