PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PEP - US7134481081 - Common Stock
128.3 EUR
-0.1 (-0.08%)
PEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 27 industry peers in the Beverages industry. PEP has an excellent profitability rating, but 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.
In the past year PEP had a positive cash flow from operations.
Each year in the past 5 years PEP has been profitable.
PEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PEP has a better Return On Assets (6.78%) than 88.89% of its industry peers.
The Return On Equity of PEP (37.26%) is better than 92.59% of its industry peers.
PEP has a better Return On Invested Capital (15.32%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEP is significantly above the industry average of 7.71%.
| 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's Profit Margin of 7.82% is in line compared to the rest of the industry. PEP outperforms 51.85% of its industry peers.
PEP's Profit Margin has been stable in the last couple of years.
The Operating Margin of PEP (15.49%) is comparable to the rest of the industry.
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 59.26% 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.
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
PEP has an Altman-Z score of 3.63. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
PEP's Altman-Z score of 3.63 is amongst the best of the industry. PEP outperforms 85.19% 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.
With a decent Debt to FCF ratio value of 7.49, PEP is doing good in the industry, outperforming 62.96% 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.
The Debt to Equity ratio of PEP (2.28) is worse than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.63 |
ROIC/WACC2.05
WACC7.48%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PEP may have some problems paying its short term obligations.
PEP has a worse Current ratio (0.91) than 62.96% of its industry peers.
A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
PEP has a better Quick ratio (0.72) than 70.37% 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%.
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.
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
The Earnings Per Share is expected to grow by 4.04% 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 3.19% yearly.
EPS Next Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.8%
EPS Next 5Y4.04%
Revenue Next Year1.41%
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 18.92, the valuation of PEP can be described as rather expensive.
PEP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. PEP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.18 indicates a rather expensive 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.
When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (36.12), we can say PEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than the industry average as 70.37% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, PEP is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.94 | ||
| EV/EBITDA | 13.88 |
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)46.48
PEG (5Y)2.33
EPS Next 2Y2.98%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.89%. 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 3.07. PEP pays more dividend than 85.19% of the companies in the same industry.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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 3Y3.8%
FRA:PEP (11/28/2025, 10:28:43 AM)
128.3
-0.1 (-0.08%)
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 Cap175.43B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target136.94 (6.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend4.57
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)1.48%
PT rev (3m)0.63%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 17.18 | ||
| P/S | 2.2 | ||
| P/FCF | 29.94 | ||
| P/OCF | 17.29 | ||
| P/B | 10.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.88 |
EPS(TTM)6.78
EY5.28%
EPS(NY)7.47
Fwd EY5.82%
FCF(TTM)4.28
FCFY3.34%
OCF(TTM)7.42
OCFY5.78%
SpS58.3
BVpS12.24
TBVpS-9.03
PEG (NY)46.48
PEG (5Y)2.33
Graham Number43.21
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
WACC7.48%
ROIC/WACC2.05
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 3Y3.8%
EPS Next 5Y4.04%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.41%
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 Year22.12%
EBIT Next 3Y10.68%
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 18.92 and the Price/Book (PB) ratio is 10.48.
Can you provide the dividend sustainability for PEP stock?
The dividend rating of PEPSICO INC (PEP.DE) is 5 / 10 and the dividend payout ratio is 104.55%.