PEPSICO INC (PEP) Fundamental Analysis & Valuation

NASDAQ:PEP • US7134481081

Current stock price

156.715 USD
+1.91 (+1.24%)
Last:

This PEP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. PEP Profitability Analysis

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.
PEP Yearly Net Income VS EBIT VS OCF VS FCFPEP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

1.2 Ratios

  • With a decent Return On Assets value of 7.67%, PEP is doing good in the industry, outperforming 64.71% of the companies in the same industry.
  • PEP's Return On Equity of 40.38% is amongst the best of the industry. PEP outperforms 94.12% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 16.14%, PEP belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
  • PEP had an Average Return On Invested Capital over the past 3 years of 15.94%. This is above the industry average of 11.81%.
  • The last Return On Invested Capital (16.14%) for PEP is above the 3 year average (15.94%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.67%
ROE 40.38%
ROIC 16.14%
ROA(3y)8.78%
ROA(5y)8.85%
ROE(3y)47.5%
ROE(5y)48.39%
ROIC(3y)15.94%
ROIC(5y)15.39%
PEP Yearly ROA, ROE, ROICPEP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • PEP has a Profit Margin of 8.77%. This is in the better half of the industry: PEP outperforms 61.76% of its industry peers.
  • PEP's Profit Margin has declined in the last couple of years.
  • The Operating Margin of PEP (15.87%) is better than 67.65% of its industry peers.
  • PEP's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of PEP (54.46%) is better than 70.59% 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 RankSector Rank
OM 15.87%
PM (TTM) 8.77%
GM 54.46%
OM growth 3Y3.16%
OM growth 5Y1.06%
PM growth 3Y-5.25%
PM growth 5Y-2.81%
GM growth 3Y0.62%
GM growth 5Y-0.16%
PEP Yearly Profit, Operating, Gross MarginsPEP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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3

2. PEP Health Analysis

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 less shares outstanding
  • PEP has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for PEP is higher compared to a year ago.
PEP Yearly Shares OutstandingPEP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
PEP Yearly Total Debt VS Total AssetsPEP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • An Altman-Z score of 3.69 indicates that PEP is not in any danger for bankruptcy at the moment.
  • PEP has a better Altman-Z score (3.69) than 70.59% of its industry peers.
  • The Debt to FCF ratio of PEP is 6.41, which is on the high side as it means it would take PEP, 6.41 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 6.41, PEP perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
  • PEP has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 2.07, PEP is doing worse than 85.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Altman-Z 3.69
ROIC/WACC2.05
WACC7.89%
PEP Yearly LT Debt VS Equity VS FCFPEP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • PEP has a Current Ratio of 0.85. 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 Current ratio value of 0.85, PEP is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.67 indicates that PEP may have some problems paying its short term obligations.
  • The Quick ratio of PEP (0.67) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.67
PEP Yearly Current Assets VS Current LiabilitesPEP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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3

3. PEP Growth Analysis

3.1 Past

  • The earnings per share for PEP have decreased by -0.12% 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 8.10% yearly.
  • The Revenue has been growing slightly by 2.25% in the past year.
  • Measured over the past years, PEP shows a small growth in Revenue. The Revenue has been growing by 5.94% on average per year.
EPS 1Y (TTM)-0.12%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%15.31%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%5.61%

3.2 Future

  • The Earnings Per Share is expected to grow by 4.96% 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 3.63% yearly.
EPS Next Y6.92%
EPS Next 2Y6.81%
EPS Next 3Y6.89%
EPS Next 5Y4.96%
Revenue Next Year5.38%
Revenue Next 2Y4.29%
Revenue Next 3Y4.12%
Revenue Next 5Y3.63%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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.
PEP Yearly Revenue VS EstimatesPEP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
PEP Yearly EPS VS EstimatesPEP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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3

4. PEP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 19.23, PEP is valued on the expensive side.
  • PEP's Price/Earnings is on the same level as the industry average.
  • PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.91.
  • The Price/Forward Earnings ratio is 17.98, which indicates a rather expensive current valuation of PEP.
  • PEP's Price/Forward Earnings ratio is in line with the industry average.
  • PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.23
Fwd PE 17.98
PEP Price Earnings VS Forward Price EarningsPEP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as PEP.
  • PEP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 27.92
EV/EBITDA 13.66
PEP Per share dataPEP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)2.78
PEG (5Y)2.37
EPS Next 2Y6.81%
EPS Next 3Y6.89%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. PEP Dividend Analysis

5.1 Amount

  • PEP has a Yearly Dividend Yield of 3.72%.
  • PEP's Dividend Yield is rather good when compared to the industry average which is at 1.83. PEP pays more dividend than 85.29% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, PEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.72%

5.2 History

  • On average, the dividend of PEP grows each year by 7.00%, which is quite nice.
  • PEP has been paying a dividend for at least 10 years, so it has a reliable track record.
  • PEP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7%
Div Incr Years34
Div Non Decr Years34
PEP Yearly Dividends per sharePEP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • PEP pays out 92.69% 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.
DP92.69%
EPS Next 2Y6.81%
EPS Next 3Y6.89%
PEP Yearly Income VS Free CF VS DividendPEP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
PEP Dividend Payout.PEP Dividend Payout, showing the Payout Ratio.PEP Dividend Payout.PayoutRetained Earnings

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PEP Fundamentals: All Metrics, Ratios and Statistics

PEPSICO INC

NASDAQ:PEP (4/9/2026, 11:43:05 AM)

156.715

+1.91 (+1.24%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-03
Earnings (Next)04-16
Inst Owners79.78%
Inst Owner Change0%
Ins Owners0.18%
Ins Owner Change6.06%
Market Cap214.17B
Revenue(TTM)93.92B
Net Income(TTM)8.24B
Analysts70.34
Price Target173.93 (10.98%)
Short Float %1.58%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield 3.72%
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP92.69%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.22%
Min EPS beat(2)0.01%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)0.61%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.49%
EPS beat(12)9
Avg EPS beat(12)2.51%
EPS beat(16)13
Avg EPS beat(16)2.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)1%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)0.53%
PT rev (3m)7.13%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-2.44%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.61%
Valuation
Industry RankSector Rank
PE 19.23
Fwd PE 17.98
P/S 2.28
P/FCF 27.92
P/OCF 17.72
P/B 10.5
P/tB N/A
EV/EBITDA 13.66
EPS(TTM)8.15
EY5.2%
EPS(NY)8.71
Fwd EY5.56%
FCF(TTM)5.61
FCFY3.58%
OCF(TTM)8.84
OCFY5.64%
SpS68.73
BVpS14.93
TBVpS-9.93
PEG (NY)2.78
PEG (5Y)2.37
Graham Number52.33
Profitability
Industry RankSector Rank
ROA 7.67%
ROE 40.38%
ROCE 19.98%
ROIC 16.14%
ROICexc 18.5%
ROICexgc 38.69%
OM 15.87%
PM (TTM) 8.77%
GM 54.46%
FCFM 8.17%
ROA(3y)8.78%
ROA(5y)8.85%
ROE(3y)47.5%
ROE(5y)48.39%
ROIC(3y)15.94%
ROIC(5y)15.39%
ROICexc(3y)18.34%
ROICexc(5y)17.38%
ROICexgc(3y)38.14%
ROICexgc(5y)38.28%
ROCE(3y)20.53%
ROCE(5y)19.57%
ROICexgc growth 3Y-2.23%
ROICexgc growth 5Y-1.52%
ROICexc growth 3Y1.99%
ROICexc growth 5Y4.59%
OM growth 3Y3.16%
OM growth 5Y1.06%
PM growth 3Y-5.25%
PM growth 5Y-2.81%
GM growth 3Y0.62%
GM growth 5Y-0.16%
F-Score5
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Debt/EBITDA 2.31
Cap/Depr 127.93%
Cap/Sales 4.7%
Interest Coverage 8.53
Cash Conversion 65.83%
Profit Quality 93.11%
Current Ratio 0.85
Quick Ratio 0.67
Altman-Z 3.69
F-Score5
WACC7.89%
ROIC/WACC2.05
Cap/Depr(3y)161.13%
Cap/Depr(5y)168.5%
Cap/Sales(3y)5.51%
Cap/Sales(5y)5.67%
Profit Quality(3y)85.16%
Profit Quality(5y)82.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.12%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%15.31%
EPS Next Y6.92%
EPS Next 2Y6.81%
EPS Next 3Y6.89%
EPS Next 5Y4.96%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%5.61%
Revenue Next Year5.38%
Revenue Next 2Y4.29%
Revenue Next 3Y4.12%
Revenue Next 5Y3.63%
EBIT growth 1Y1.26%
EBIT growth 3Y6.08%
EBIT growth 5Y7.07%
EBIT Next Year33.72%
EBIT Next 3Y13.97%
EBIT Next 5Y9.35%
FCF growth 1Y6.72%
FCF growth 3Y11.04%
FCF growth 5Y3.78%
OCF growth 1Y-3.36%
OCF growth 3Y3.79%
OCF growth 5Y2.64%

PEPSICO INC / PEP Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for PEPSICO INC?

ChartMill assigns a fundamental rating of 4 / 10 to PEP.


Can you provide the valuation status for PEPSICO INC?

ChartMill assigns a valuation rating of 3 / 10 to PEPSICO INC (PEP). This can be considered as Overvalued.


What is the profitability of PEP stock?

PEPSICO INC (PEP) has a profitability rating of 7 / 10.


Can you provide the financial health for PEP stock?

The financial health rating of PEPSICO INC (PEP) is 3 / 10.


Is the dividend of PEPSICO INC sustainable?

The dividend rating of PEPSICO INC (PEP) is 6 / 10 and the dividend payout ratio is 92.69%.