PEPSICO INC (PEP.DE) Stock Fundamental Analysis
FRA:PEP - Deutsche Boerse Ag - US7134481081 - Common Stock - Currency: EUR
PEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Beverages industry. PEP scores excellent on profitability, but there are some minor concerns on its financial health. PEP is valued correctly, but it does not seem to be growing. Finally PEP also has an excellent dividend rating.
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
PEP has a better Return On Assets (9.21%) than 88.00% of its industry peers.
PEP has a better Return On Equity (50.95%) than 96.00% of its industry peers.
With an excellent Return On Invested Capital value of 16.68%, PEP belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PEP is significantly above the industry average of 7.84%.
The last Return On Invested Capital (16.68%) for PEP is above the 3 year average (15.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 50.95% | ||
| ROIC | 16.68% |
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
Looking at the Profit Margin, with a value of 10.24%, PEP is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
PEP's Profit Margin has been stable in the last couple of years.
The Operating Margin of PEP (15.92%) 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.
PEP has a Gross Margin of 55.13%. This is comparable to the rest of the industry: PEP outperforms 56.00% of its industry peers.
PEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.92% | ||
| PM (TTM) | 10.24% | ||
| GM | 55.13% |
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
PEP has a worse debt/assets ratio than last year.
2.2 Solvency
PEP has an Altman-Z score of 3.65. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
PEP has a better Altman-Z score (3.65) than 84.00% of its industry peers.
PEP has a debt to FCF ratio of 6.68. This is a slightly negative value and a sign of low solvency as PEP would need 6.68 years to pay back of all of its debts.
PEP has a better Debt to FCF ratio (6.68) than 64.00% of its industry peers.
PEP has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
PEP's Debt to Equity ratio of 2.14 is on the low side compared to the rest of the industry. PEP is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 3.65 |
ROIC/WACC2.16
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.83 indicates that PEP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.83, PEP is doing worse than 64.00% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that PEP may have some problems paying its short term obligations.
PEP's Quick ratio of 0.65 is in line compared to the rest of the industry. PEP outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PEP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.88%.
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 decreased by -0.38% in the past year.
PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)3.88%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-8.07%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-1.81%
3.2 Future
PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.50% yearly.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y-2.38%
EPS Next 2Y1.75%
EPS Next 3Y3.2%
EPS Next 5Y3.5%
Revenue Next Year-0.27%
Revenue Next 2Y1.41%
Revenue Next 3Y2.11%
Revenue Next 5Y2.85%
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
The Price/Earnings ratio is 16.80, which indicates a correct valuation of PEP.
Compared to the rest of the industry, the Price/Earnings ratio of PEP indicates a somewhat cheap valuation: PEP is cheaper than 72.00% of the companies listed in the same industry.
PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 15.97, PEP is valued correctly.
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 (21.76), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 15.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEP is valued a bit more expensive than 60.00% of the companies in the same industry.
PEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
PEP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.07
EPS Next 2Y1.75%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, PEP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.88, PEP pays a better dividend. On top of this PEP pays more dividend than 88.00% of the companies listed in the same industry.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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
78.38% 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.
DP78.38%
EPS Next 2Y1.75%
EPS Next 3Y3.2%
FRA:PEP (7/10/2025, 10:52:03 AM)
115.26
+0.68 (+0.59%)
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 Cap158.03B
Analysts67.14
Price Target131.97 (14.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend4.47
Dividend Growth(5Y)6.8%
DP78.38%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.39%
Max EPS beat(2)-0.08%
EPS beat(4)1
Avg EPS beat(4)0.77%
Min EPS beat(4)-1.39%
Max EPS beat(4)4.63%
EPS beat(8)5
Avg EPS beat(8)2.43%
EPS beat(12)9
Avg EPS beat(12)3.2%
EPS beat(16)12
Avg EPS beat(16)3.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)-0.16%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)5
Avg Revenue beat(12)0.45%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-3.04%
PT rev (3m)-15.06%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-11.94%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 15.97 | ||
| P/S | 2.02 | ||
| P/FCF | 25.46 | ||
| P/OCF | 14.71 | ||
| P/B | 10.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.3 |
EPS(TTM)6.86
EY5.95%
EPS(NY)7.22
Fwd EY6.26%
FCF(TTM)4.53
FCFY3.93%
OCF(TTM)7.83
OCFY6.8%
SpS57.01
BVpS11.45
TBVpS-9.55
PEG (NY)N/A
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 50.95% | ||
| ROCE | 20.75% | ||
| ROIC | 16.68% | ||
| ROICexc | 19% | ||
| ROICexgc | 41.96% | ||
| OM | 15.92% | ||
| PM (TTM) | 10.24% | ||
| GM | 55.13% | ||
| FCFM | 7.94% |
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-Score6
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.68 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 136.92% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.16% | ||
| Profit Quality | 77.57% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.65 |
F-Score6
WACC7.71%
ROIC/WACC2.16
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)3.88%
EPS 3Y9.3%
EPS 5Y8.13%
EPS Q2Q%-8.07%
EPS Next Y-2.38%
EPS Next 2Y1.75%
EPS Next 3Y3.2%
EPS Next 5Y3.5%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%-1.81%
Revenue Next Year-0.27%
Revenue Next 2Y1.41%
Revenue Next 3Y2.11%
Revenue Next 5Y2.85%
EBIT growth 1Y4.95%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year20.6%
EBIT Next 3Y10.35%
EBIT Next 5Y7.49%
FCF growth 1Y36.44%
FCF growth 3Y0.94%
FCF growth 5Y5.82%
OCF growth 1Y18.71%
OCF growth 3Y2.49%
OCF growth 5Y5.33%