PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
131.22 EUR
-0.7 (-0.53%)
Overall PEP gets a fundamental rating of 4 out of 10. We evaluated PEP against 29 industry peers in the Beverages industry. PEP scores excellent on profitability, but there are concerns on its financial health. PEP does not seem to be growing, but still is valued expensively.
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.
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.
1.2 Ratios
PEP's Return On Assets of 6.78% is fine compared to the rest of the industry. PEP outperforms 79.31% of its industry peers.
The Return On Equity of PEP (37.26%) is better than 89.66% of its industry peers.
PEP's Return On Invested Capital of 15.32% is amongst the best of the industry. PEP outperforms 89.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEP is significantly above the industry average of 8.16%.
| 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
The Profit Margin of PEP (7.82%) 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 (15.49%) which is in line with its industry peers.
PEP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 54.50%, PEP perfoms like the industry average, outperforming 48.28% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for PEP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that PEP is not in any danger for bankruptcy at the moment.
The Altman-Z score of PEP (3.68) is better than 79.31% 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.
A Debt/Equity ratio of 2.28 is on the high side and indicates that PEP has dependencies on debt financing.
PEP has a worse Debt to Equity ratio (2.28) than 96.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.68 |
ROIC/WACC2.04
WACC7.52%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PEP may have some problems paying its short term obligations.
With a Current ratio value of 0.91, PEP is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.72, PEP is in line with its industry, outperforming 58.62% of the companies in the same industry.
| 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%.
Measured over the past years, PEP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.13% on average per year.
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 3.34% on average per year.
Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y-0.63%
EPS Next 2Y2.61%
EPS Next 3Y3.64%
EPS Next 5Y3.34%
Revenue Next Year1.04%
Revenue Next 2Y2.08%
Revenue Next 3Y2.48%
Revenue Next 5Y3.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
PEP is valuated rather expensively with a Price/Earnings ratio of 19.47.
Compared to the rest of the industry, the Price/Earnings ratio of PEP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PEP to the average of the S&P500 Index (27.40), we can say PEP is valued slightly cheaper.
PEP is valuated rather expensively with a Price/Forward Earnings ratio of 17.79.
PEP's Price/Forward Earnings is on the same level as the industry average.
PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
68.97% of the companies in the same industry are cheaper than PEP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PEP is valued a bit more expensive than the industry average as 62.07% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.83 | ||
| EV/EBITDA | 14.27 |
4.3 Compensation for Growth
PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.39
EPS Next 2Y2.61%
EPS Next 3Y3.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.93%, PEP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.78, PEP pays a better dividend. On top of this PEP pays more dividend than 82.76% of the companies listed in the same industry.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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
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 2Y2.61%
EPS Next 3Y3.64%
FRA:PEP (10/17/2025, 7:00:00 PM)
131.22
-0.7 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.94%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap179.65B
Analysts67.86
Price Target134.95 (2.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend4.55
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)1.89%
Min EPS beat(2)0.37%
Max EPS beat(2)3.41%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.8%
EPS beat(12)9
Avg EPS beat(12)2.53%
EPS beat(16)12
Avg EPS beat(16)2.85%
Revenue beat(2)1
Avg Revenue beat(2)0.22%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
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)-0.82%
PT rev (3m)2.25%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)7.94%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 17.79 | ||
| P/S | 2.27 | ||
| P/FCF | 30.83 | ||
| P/OCF | 17.8 | ||
| P/B | 10.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.27 |
EPS(TTM)6.74
EY5.14%
EPS(NY)7.38
Fwd EY5.62%
FCF(TTM)4.26
FCFY3.24%
OCF(TTM)7.37
OCFY5.62%
SpS57.92
BVpS12.16
TBVpS-8.97
PEG (NY)N/A
PEG (5Y)2.39
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%
ROICexcg growth 3Y1.22%
ROICexcg 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 | 3.68 |
F-Score5
WACC7.52%
ROIC/WACC2.04
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 Y-0.63%
EPS Next 2Y2.61%
EPS Next 3Y3.64%
EPS Next 5Y3.34%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.04%
Revenue Next 2Y2.08%
Revenue Next 3Y2.48%
Revenue Next 5Y3.19%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.12%
EBIT Next 3Y10.68%
EBIT Next 5Y7.49%
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%