PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
122.84 EUR
-0.86 (-0.7%)
Taking everything into account, PEP scores 4 out of 10 in our fundamental rating. PEP was compared to 27 industry peers in the Beverages industry. PEP scores excellent on profitability, 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.
PEP had a positive operating cash flow in the past year.
PEP had positive earnings in each of the past 5 years.
Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.78%, PEP belongs to the best of the industry, outperforming 85.19% 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 92.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.32%, PEP belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PEP is significantly above the industry average of 7.77%.
| 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.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
PEP has a Operating Margin (15.49%) which is comparable to the rest of the industry.
PEP's Operating Margin has been stable in the last couple of years.
PEP has a Gross Margin of 54.50%. This is comparable 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 | 15.49% | ||
| 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.
Compared to 5 years ago, PEP has less shares outstanding
The debt/assets ratio for PEP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.57 indicates that PEP is not in any danger for bankruptcy at the moment.
PEP has a Altman-Z score of 3.57. This is amongst the best in the industry. PEP outperforms 81.48% 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.
PEP has a Debt to FCF ratio (7.49) which is in line with its industry peers.
PEP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.28, PEP is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.57 |
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.
PEP has a Current ratio of 0.91. This is in the lower half of the industry: PEP underperforms 70.37% of its industry peers.
A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
PEP's Quick ratio of 0.72 is fine compared to the rest of the industry. PEP outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for PEP have decreased by -1.63% in the last year.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
PEP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.49%.
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
PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.34% yearly.
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 Y0.39%
EPS Next 2Y3.09%
EPS Next 3Y3.94%
EPS Next 5Y3.34%
Revenue Next Year1.49%
Revenue Next 2Y2.49%
Revenue Next 3Y2.7%
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 18.04, the valuation of PEP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PEP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.67. PEP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of PEP.
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 (31.86), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than PEP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEP indicates a slightly more expensive valuation: PEP is more expensive than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.54 | ||
| EV/EBITDA | 13.4 |
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)46.22
PEG (5Y)2.22
EPS Next 2Y3.09%
EPS Next 3Y3.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, PEP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.81, PEP pays a better dividend. On top of this PEP pays more dividend than 85.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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
PEP pays out 104.55% of its income as dividend. 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 2Y3.09%
EPS Next 3Y3.94%
FRA:PEP (11/7/2025, 11:22:28 AM)
122.84
-0.86 (-0.7%)
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 Cap167.96B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts67.86
Price Target139.57 (13.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend4.56
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)3.88%
PT rev (3m)7.43%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)1.02%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 16.34 | ||
| P/S | 2.1 | ||
| P/FCF | 28.54 | ||
| P/OCF | 16.48 | ||
| P/B | 9.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.4 |
EPS(TTM)6.81
EY5.54%
EPS(NY)7.52
Fwd EY6.12%
FCF(TTM)4.3
FCFY3.5%
OCF(TTM)7.45
OCFY6.07%
SpS58.57
BVpS12.29
TBVpS-9.07
PEG (NY)46.22
PEG (5Y)2.22
Graham Number43.4
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 | 3.57 |
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 Y0.39%
EPS Next 2Y3.09%
EPS Next 3Y3.94%
EPS Next 5Y3.34%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.49%
Revenue Next 2Y2.49%
Revenue Next 3Y2.7%
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%
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 18.04 and the Price/Book (PB) ratio is 9.99.
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%.