PEPSICO INC (PEP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PEP - US7134481081 - Common Stock
122.52 EUR
-0.26 (-0.21%)
Taking everything into account, PEP scores 4 out of 10 in our fundamental rating. PEP was compared to 26 industry peers in the Beverages industry. While PEP has a great profitability rating, there are some minor concerns on its financial health. PEP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
PEP had positive earnings in the past year.
In the past year PEP had a positive cash flow from operations.
Each year in the past 5 years PEP has been profitable.
Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
PEP has a better Return On Assets (6.78%) than 88.46% of its industry peers.
The Return On Equity of PEP (37.26%) is better than 92.31% of its industry peers.
PEP's Return On Invested Capital of 15.32% is amongst the best of the industry. PEP outperforms 100.00% 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 7.67%.
| 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
Looking at the Profit Margin, with a value of 7.82%, PEP is in line with its industry, outperforming 50.00% of the companies in the same industry.
PEP's Profit Margin has been stable in the last couple of years.
PEP has a Operating Margin of 15.49%. This is comparable to the rest of the industry: PEP outperforms 50.00% of its industry peers.
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 57.69% of its industry peers.
PEP's Gross Margin has been stable in the last couple of years.
| 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.
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 3.58. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
PEP has a better Altman-Z score (3.58) than 84.62% 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.
A Debt/Equity ratio of 2.28 is on the high side and indicates that PEP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.28, PEP is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.58 |
ROIC/WACC2.03
WACC7.53%
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 65.38% 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.
With a decent Quick ratio value of 0.72, PEP is doing good in the industry, outperforming 69.23% 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.
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%.
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)-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
The Earnings Per Share is expected to grow by 4.04% on average over the next years.
PEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y4.04%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
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
The Price/Earnings ratio is 18.34, which indicates a rather expensive current valuation of PEP.
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 26.77.
Based on the Price/Forward Earnings ratio of 16.67, the valuation of PEP can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP is on the same level as its industry peers.
PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
PEP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PEP is more expensive than 73.08% of the companies in the same industry.
PEP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. PEP is more expensive than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.02 | ||
| EV/EBITDA | 13.51 |
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)42.64
PEG (5Y)2.26
EPS Next 2Y2.9%
EPS Next 3Y3.86%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 2.92, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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 2Y2.9%
EPS Next 3Y3.86%
FRA:PEP (12/30/2025, 7:00:00 PM)
122.52
-0.26 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap167.53B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target139.52 (13.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend4.47
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)1.88%
PT rev (3m)3.84%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 16.67 | ||
| P/S | 2.13 | ||
| P/FCF | 29.02 | ||
| P/OCF | 16.76 | ||
| P/B | 10.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.51 |
EPS(TTM)6.68
EY5.45%
EPS(NY)7.35
Fwd EY6%
FCF(TTM)4.22
FCFY3.45%
OCF(TTM)7.31
OCFY5.97%
SpS57.46
BVpS12.06
TBVpS-8.9
PEG (NY)42.64
PEG (5Y)2.26
Graham Number42.58
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 | 3.58 |
F-Score5
WACC7.53%
ROIC/WACC2.03
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 Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y4.04%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y3.19%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.82%
EBIT Next 3Y11.16%
EBIT Next 5Y8.64%
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 18.34 and the Price/Book (PB) ratio is 10.16.
Can you provide the dividend sustainability for PEP stock?
The dividend rating of PEPSICO INC (PEP.DE) is 4 / 10 and the dividend payout ratio is 104.55%.