PEPSICO INC (PEP) Stock Fundamental Analysis
USA - NASDAQ:PEP - US7134481081 - Common Stock
141.48 USD
-1.38 (-0.97%)
We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 33 industry peers in the Beverages industry. PEP scores excellent on profitability, but there are concerns on its financial health. PEP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PEP was profitable.
In the past year PEP had a positive cash flow from operations.
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 66.67% of its industry peers.
With an excellent Return On Equity value of 37.26%, PEP belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
PEP's Return On Invested Capital of 15.32% is amongst the best of the industry. PEP outperforms 84.85% 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 10.75%.
| 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 54.55% of its industry peers.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
Looking at the Operating Margin, with a value of 15.49%, PEP is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
PEP's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 54.50%, PEP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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
PEP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PEP has about the same amount of 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.
2.2 Solvency
PEP has an Altman-Z score of 3.57. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.57, PEP is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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.
PEP's Debt to FCF ratio of 7.49 is in line compared to the rest of the industry. PEP outperforms 54.55% of its industry peers.
PEP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
PEP's Debt to Equity ratio of 2.28 is on the low side compared to the rest of the industry. PEP is outperformed by 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.57 |
ROIC/WACC2
WACC7.66%
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 78.79% 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 in line compared to the rest of the industry. PEP outperforms 45.45% 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.
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
Based on estimates for the next years, PEP will show a small growth in Earnings Per Share. The EPS will grow by 3.34% on average per year.
The Revenue is expected to grow by 3.19% on average over the next years.
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
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
PEP is valuated rather expensively with a Price/Earnings ratio of 18.02.
Compared to the rest of the industry, the Price/Earnings ratio of PEP is on the same level as its industry peers.
PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.13.
PEP is valuated correctly with a Price/Forward Earnings ratio of 16.31.
The rest of the industry has a similar Price/Forward Earnings ratio as PEP.
PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
PEP's Enterprise Value to EBITDA is on the same level as the industry average.
PEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.5 | ||
| EV/EBITDA | 13.42 |
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)46.18
PEG (5Y)2.22
EPS Next 2Y3.09%
EPS Next 3Y3.94%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.86%.
PEP's Dividend Yield is rather good when compared to the industry average which is at 3.10. PEP pays more dividend than 87.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 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.
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)6.8%
Div Incr Years34
Div Non Decr Years34
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%
NASDAQ:PEP (11/6/2025, 2:53:07 PM)
141.48
-1.38 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.94%
Inst Owner Change-1.18%
Ins Owners0.17%
Ins Owner Change0.7%
Market Cap193.45B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts67.86
Price Target160.49 (13.44%)
Short Float %1.23%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend5.27
Dividend Growth(5Y)6.8%
DP104.55%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)1.16%
PT rev (3m)6.61%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)1.02%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 16.31 | ||
| P/S | 2.09 | ||
| P/FCF | 28.5 | ||
| P/OCF | 16.46 | ||
| P/B | 9.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.42 |
EPS(TTM)7.85
EY5.55%
EPS(NY)8.67
Fwd EY6.13%
FCF(TTM)4.96
FCFY3.51%
OCF(TTM)8.6
OCFY6.08%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)46.18
PEG (5Y)2.22
Graham Number50.04
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
WACC7.66%
ROIC/WACC2
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 FAQ
Can you provide the ChartMill fundamental rating for PEPSICO INC?
ChartMill assigns a fundamental rating of 4 / 10 to PEP.
What is the valuation status for PEP stock?
ChartMill assigns a valuation rating of 3 / 10 to PEPSICO INC (PEP). This can be considered as Overvalued.
Can you provide the profitability details for PEPSICO INC?
PEPSICO INC (PEP) 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) is 18.02 and the Price/Book (PB) ratio is 9.98.
Can you provide the dividend sustainability for PEP stock?
The dividend rating of PEPSICO INC (PEP) is 6 / 10 and the dividend payout ratio is 104.55%.