PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
119 EUR
-1.3 (-1.08%)
We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 27 industry peers in the Beverages industry. PEP scores excellent on profitability, 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.
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
Looking at the Return On Assets, with a value of 7.17%, PEP belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
The Return On Equity of PEP (40.99%) is better than 92.59% of its industry peers.
The Return On Invested Capital of PEP (16.72%) is better than 96.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PEP is significantly above the industry average of 8.63%.
The 3 year average ROIC (15.79%) for PEP is below the current ROIC(16.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 40.99% | ||
| ROIC | 16.72% |
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 8.23%, PEP perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
With a Operating Margin value of 15.63%, PEP perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
PEP's Operating Margin has been stable in the last couple of years.
PEP's Gross Margin of 54.92% is in line compared to the rest of the industry. PEP outperforms 59.26% 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 | 15.63% | ||
| PM (TTM) | 8.23% | ||
| GM | 54.92% |
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.
The number of shares outstanding for PEP has been reduced compared to 5 years ago.
The debt/assets ratio for PEP is higher compared to a year ago.
2.2 Solvency
PEP has an Altman-Z score of 3.52. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
PEP's Altman-Z score of 3.52 is fine compared to the rest of the industry. PEP outperforms 77.78% of its industry peers.
PEP has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as PEP would need 7.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.27, PEP is in line with its industry, outperforming 55.56% of the companies in the same industry.
A Debt/Equity ratio of 2.14 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 2.14, PEP is doing worse than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 3.52 |
ROIC/WACC2.24
WACC7.47%
2.3 Liquidity
PEP has a Current Ratio of 0.78. 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 worse Current ratio (0.78) than 70.37% of its industry peers.
A Quick Ratio of 0.60 indicates that PEP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, PEP is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
PEP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.63%.
PEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
Looking at the last year, PEP shows a decrease in Revenue. The Revenue has decreased by -0.33% in the last year.
Measured over the past years, PEP shows a small growth in Revenue. The Revenue has been growing by 6.46% on average per year.
EPS 1Y (TTM)-0.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-7.02%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%1%
3.2 Future
The Earnings Per Share is expected to grow by 3.34% on average over the next years.
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-0.7%
EPS Next 2Y2.43%
EPS Next 3Y3.58%
EPS Next 5Y3.34%
Revenue Next Year1.05%
Revenue Next 2Y2.12%
Revenue Next 3Y2.53%
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
A Price/Earnings ratio of 17.79 indicates a rather expensive valuation of PEP.
PEP's Price/Earnings is on the same level as the industry average.
PEP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.35, the valuation of PEP can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as PEP.
When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (22.77), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than 62.96% of the companies in the same industry.
PEP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.14 | ||
| EV/EBITDA | 12.94 |
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)2.19
EPS Next 2Y2.43%
EPS Next 3Y3.58%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.85, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 98.89% 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.
DP98.89%
EPS Next 2Y2.43%
EPS Next 3Y3.58%
FRA:PEP (9/16/2025, 5:28:59 PM)
119
-1.3 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.76%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap162.92B
Analysts67.86
Price Target134.37 (12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend4.49
Dividend Growth(5Y)6.8%
DP98.89%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.01%
Min EPS beat(2)-1.39%
Max EPS beat(2)3.41%
EPS beat(4)1
Avg EPS beat(4)0.46%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)2.18%
EPS beat(12)9
Avg EPS beat(12)2.98%
EPS beat(16)12
Avg EPS beat(16)2.97%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)1%
Revenue beat(8)1
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)0.31%
Revenue beat(16)9
Avg Revenue beat(16)0.99%
PT rev (1m)-1.27%
PT rev (3m)0.22%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-6.87%
EPS NY rev (1m)1.75%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 16.35 | ||
| P/S | 2.09 | ||
| P/FCF | 27.14 | ||
| P/OCF | 15.73 | ||
| P/B | 10.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.94 |
EPS(TTM)6.69
EY5.62%
EPS(NY)7.28
Fwd EY6.11%
FCF(TTM)4.39
FCFY3.69%
OCF(TTM)7.57
OCFY6.36%
SpS56.96
BVpS11.43
TBVpS-9.97
PEG (NY)N/A
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 40.99% | ||
| ROCE | 20.8% | ||
| ROIC | 16.72% | ||
| ROICexc | 18.91% | ||
| ROICexgc | 43.5% | ||
| OM | 15.63% | ||
| PM (TTM) | 8.23% | ||
| GM | 54.92% | ||
| FCFM | 7.7% |
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 | 2.14 | ||
| Debt/FCF | 7.27 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 129.26% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.58% | ||
| Profit Quality | 93.56% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 3.52 |
F-Score5
WACC7.47%
ROIC/WACC2.24
Cap/Depr(3y)151.67%
Cap/Depr(5y)153.05%
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)-0.63%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-7.02%
EPS Next Y-0.7%
EPS Next 2Y2.43%
EPS Next 3Y3.58%
EPS Next 5Y3.34%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%1%
Revenue Next Year1.05%
Revenue Next 2Y2.12%
Revenue Next 3Y2.53%
Revenue Next 5Y3.19%
EBIT growth 1Y0.64%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.12%
EBIT Next 3Y10.64%
EBIT Next 5Y7.49%
FCF growth 1Y23.32%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y11.32%
OCF growth 3Y2.49%
OCF growth 5Y5.33%