PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
126.9 EUR
-0.7 (-0.55%)
We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 24 industry peers in the Beverages industry. PEP has an excellent profitability rating, but there are some minor 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.
PEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PEP (6.78%) is better than 83.33% of its industry peers.
PEP has a Return On Equity of 37.26%. This is amongst the best in the industry. PEP outperforms 87.50% of its industry peers.
PEP has a better Return On Invested Capital (15.32%) than 95.83% 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 7.78%.
| 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 50.00% of the companies in the same industry.
PEP's Profit Margin has been stable in the last couple of years.
PEP's Operating Margin of 15.49% is in line compared to the rest of the industry. PEP outperforms 50.00% 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.
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 | 15.49% | ||
| 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.
The number of shares outstanding for PEP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PEP has less shares outstanding
PEP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.62 indicates that PEP is not in any danger for bankruptcy at the moment.
The Altman-Z score of PEP (3.62) is better than 83.33% 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.
With a Debt to FCF ratio value of 7.49, PEP perfoms like the industry average, outperforming 58.33% of the companies in the same 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 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.62 |
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.
Looking at the Current ratio, with a value of 0.91, PEP is doing worse than 70.83% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
PEP has a Quick ratio of 0.72. This is in the better half of the industry: PEP outperforms 62.50% 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%.
PEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
PEP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.49%.
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.
Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
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 5Y3.21%
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
PEP is valuated rather expensively with a Price/Earnings ratio of 18.72.
The rest of the industry has a similar Price/Earnings ratio as PEP.
PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.07.
The Price/Forward Earnings ratio is 16.98, which indicates a correct valuation of PEP.
Based on the Price/Forward Earnings ratio, PEP is valued a bit more expensive than 66.67% of the companies in the same industry.
PEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.98 |
4.2 Price Multiples
70.83% 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 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.61 | ||
| EV/EBITDA | 13.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PEP may justify a higher PE ratio.
PEG (NY)45.97
PEG (5Y)2.3
EPS Next 2Y2.98%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.92%. 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 3.16. PEP pays more dividend than 83.33% of the companies in the same industry.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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 2Y2.98%
EPS Next 3Y3.8%
FRA:PEP (11/20/2025, 7:00:00 PM)
126.9
-0.7 (-0.55%)
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 Cap173.52B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target138.96 (9.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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)2.98%
PT rev (3m)2.11%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)1.04%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.98 | ||
| P/S | 2.18 | ||
| P/FCF | 29.61 | ||
| P/OCF | 17.1 | ||
| P/B | 10.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.8 |
EPS(TTM)6.78
EY5.34%
EPS(NY)7.47
Fwd EY5.89%
FCF(TTM)4.29
FCFY3.38%
OCF(TTM)7.42
OCFY5.85%
SpS58.32
BVpS12.24
TBVpS-9.03
PEG (NY)45.97
PEG (5Y)2.3
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 | 3.62 |
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 3Y3.8%
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 5Y3.21%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.12%
EBIT Next 3Y10.68%
EBIT Next 5Y8.59%
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 18.72 and the Price/Book (PB) ratio is 10.37.
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%.