PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - FRA:PEP - US7134481081 - Common Stock
124.18 EUR
-1.02 (-0.81%)
Taking everything into account, PEP scores 5 out of 10 in our fundamental rating. PEP was compared to 25 industry peers in the Beverages industry. While PEP has a great profitability rating, 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
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 has a better Return On Assets (6.78%) than 84.00% of its industry peers.
PEP's Return On Equity of 37.26% is amongst the best of the industry. PEP outperforms 88.00% of its industry peers.
PEP has a better Return On Invested Capital (15.32%) than 96.00% 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 8.01%.
| 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 48.00% 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.
In the last couple of years the Operating Margin of PEP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 54.50%, PEP is in line with its industry, outperforming 56.00% of the companies in the same 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.
Compared to 1 year ago, PEP has about the same amount of shares outstanding.
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 3.59 indicates that PEP is not in any danger for bankruptcy at the moment.
The Altman-Z score of PEP (3.59) is better than 84.00% 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.
The Debt to FCF ratio of PEP (7.49) is comparable to the rest of the industry.
PEP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
PEP has a worse Debt to Equity ratio (2.28) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.59 |
ROIC/WACC2.04
WACC7.51%
2.3 Liquidity
PEP has a Current 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 Current ratio, with a value of 0.91, PEP is doing worse than 72.00% of the companies in the same industry.
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 the better half of the industry, outperforming 64.00% of the companies in the same industry.
| 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
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.
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 18.32, 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.
Compared to an average S&P500 Price/Earnings ratio of 25.91, PEP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.61, PEP is valued correctly.
Based on the Price/Forward Earnings ratio, PEP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
PEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than 68.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PEP is valued a bit more expensive than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.96 | ||
| EV/EBITDA | 13.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PEP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PEP may justify a higher PE ratio.
PEG (NY)44.99
PEG (5Y)2.25
EPS Next 2Y2.98%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, PEP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.20, PEP pays a better dividend. On top of this PEP pays more dividend than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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.
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 (11/13/2025, 4:38:12 PM)
124.18
-1.02 (-0.81%)
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 Cap169.80B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target138.96 (11.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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)1.92%
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)6.96%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)1.04%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.61 | ||
| P/S | 2.13 | ||
| P/FCF | 28.96 | ||
| P/OCF | 16.72 | ||
| P/B | 10.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.58 |
EPS(TTM)6.78
EY5.46%
EPS(NY)7.48
Fwd EY6.02%
FCF(TTM)4.29
FCFY3.45%
OCF(TTM)7.43
OCFY5.98%
SpS58.35
BVpS12.25
TBVpS-9.04
PEG (NY)44.99
PEG (5Y)2.25
Graham Number43.23
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 | 3.59 |
F-Score5
WACC7.51%
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 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 5 / 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 18.32 and the Price/Book (PB) ratio is 10.14.
Can you provide the dividend sustainability for PEP stock?
The dividend rating of PEPSICO INC (PEP.DE) is 6 / 10 and the dividend payout ratio is 104.55%.