PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PEP - US7134481081 - Common Stock
127.49 EUR
+0.15 (+0.12%)
We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 29 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PEP was profitable.
PEP had a positive operating cash flow in the past year.
In the past 5 years PEP has always been profitable.
PEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.78%, PEP belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 37.26%, PEP belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
PEP has a better Return On Invested Capital (15.32%) than 96.55% of its industry peers.
PEP had an Average Return On Invested Capital over the past 3 years of 15.79%. This is significantly above the industry average of 7.74%.
| 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.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
PEP's Operating Margin of 15.49% is in line compared to the rest of the industry. PEP outperforms 51.72% of its industry peers.
In the last couple of years the Operating Margin of PEP has remained more or less at the same level.
The Gross Margin of PEP (54.50%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PEP is creating value.
Compared to 1 year ago, PEP has about the same amount of shares outstanding.
PEP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PEP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that PEP is not in any danger for bankruptcy at the moment.
PEP's Altman-Z score of 3.63 is amongst the best of the industry. PEP outperforms 86.21% of its industry peers.
The Debt to FCF ratio of PEP is 7.49, which is on the high side as it means it would take PEP, 7.49 years of fcf income to pay off all of its debts.
PEP has a Debt to FCF ratio (7.49) which is comparable to the rest of the industry.
PEP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PEP (2.28) is worse than 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.63 |
ROIC/WACC2.02
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PEP may have some problems paying its short term obligations.
The Current ratio of PEP (0.91) is worse than 68.97% of its industry peers.
A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
The Quick ratio of PEP (0.72) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
PEP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.63%.
The Earnings Per Share has been growing by 8.13% 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 0.49% 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)-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
Based on estimates for the next years, PEP will show a small growth in Earnings Per Share. The EPS will grow by 4.04% on average per year.
The Revenue is expected to grow by 3.19% on average over the next years.
EPS Next Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.79%
EPS Next 5Y4.04%
Revenue Next Year1.42%
Revenue Next 2Y2.39%
Revenue Next 3Y2.67%
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.
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 19.03, the valuation of PEP can be described as rather expensive.
PEP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PEP to the average of the S&P500 Index (26.76), we can say PEP is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.26, the valuation of PEP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (23.96), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than 72.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PEP is valued a bit more expensive than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.08 | ||
| EV/EBITDA | 13.91 |
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)46.23
PEG (5Y)2.34
EPS Next 2Y2.98%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.87%, PEP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.08, 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of PEP is nicely growing with an annual growth rate of 6.80%!
Dividend Growth(5Y)6.8%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
PEP pays out 104.55% 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.
DP104.55%
EPS Next 2Y2.98%
EPS Next 3Y3.79%
FRA:PEP (12/12/2025, 2:27:02 PM)
127.49
+0.15 (+0.12%)
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 Cap174.32B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target137.53 (7.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend4.52
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)-1.46%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)0%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 17.26 | ||
| P/S | 2.21 | ||
| P/FCF | 30.08 | ||
| P/OCF | 17.37 | ||
| P/B | 10.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.91 |
EPS(TTM)6.7
EY5.26%
EPS(NY)7.39
Fwd EY5.8%
FCF(TTM)4.24
FCFY3.32%
OCF(TTM)7.34
OCFY5.76%
SpS57.67
BVpS12.1
TBVpS-8.93
PEG (NY)46.23
PEG (5Y)2.34
Graham Number42.72
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 | 3.63 |
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 Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.79%
EPS Next 5Y4.04%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.42%
Revenue Next 2Y2.39%
Revenue Next 3Y2.67%
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 19.03 and the Price/Book (PB) ratio is 10.53.
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%.