PEPSICO INC (PEP) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:PEP • US7134481081

155.2 USD
+1.57 (+1.02%)
At close: Feb 2, 2026
153.48 USD
-1.72 (-1.11%)
Pre-Market: 2/3/2026, 4:44:33 AM
Fundamental Rating

4

PEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. PEP scores excellent on profitability, but there are concerns on its financial health. PEP does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

7

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.
  • PEP had a positive operating cash flow in each of the past 5 years.
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 5B 10B

1.2 Ratios

  • PEP's Return On Assets of 6.78% is fine compared to the rest of the industry. PEP outperforms 60.61% of its industry peers.
  • PEP's Return On Equity of 37.26% is amongst the best of the industry. PEP outperforms 90.91% of its industry peers.
  • PEP has a Return On Invested Capital of 15.32%. This is amongst the best in 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 above the industry average of 11.45%.
Industry RankSector 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%
PEP Yearly ROA, ROE, ROICPEP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

  • PEP has a Profit Margin of 7.82%. This is comparable to the rest of the industry: PEP outperforms 57.58% 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 better than 69.70% of its industry peers.
  • 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 54.50%. This is in the better half of the industry: PEP outperforms 66.67% of its industry peers.
  • PEP's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
PEP Yearly Profit, Operating, Gross MarginsPEP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

More info and screens

3

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.
  • 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.
PEP Yearly Shares OutstandingPEP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 20B 40B 60B 80B 100B

2.2 Solvency

  • PEP has an Altman-Z score of 3.69. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of PEP (3.69) is better than 66.67% 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.
  • PEP has a Debt to FCF ratio of 7.49. This is comparable to the rest of the industry: PEP outperforms 54.55% of its industry peers.
  • A Debt/Equity ratio of 2.28 is on the high side and indicates that PEP has dependencies on debt financing.
  • The Debt to Equity ratio of PEP (2.28) is worse than 90.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 7.49
Altman-Z 3.69
ROIC/WACC1.95
WACC7.86%
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 10B 20B 30B 40B

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.
  • PEP has a worse Current ratio (0.91) than 72.73% of its industry peers.
  • A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
  • PEP has a Quick ratio (0.72) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.72
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 10B 20B 30B

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3

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.
  • The Revenue has been growing slightly by 0.49% in the past year.
  • 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 3.75% on average per year.
  • PEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.97% yearly.
EPS Next Y0.42%
EPS Next 2Y2.84%
EPS Next 3Y3.8%
EPS Next 5Y3.75%
Revenue Next Year1.4%
Revenue Next 2Y2.62%
Revenue Next 3Y2.82%
Revenue Next 5Y2.97%

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.
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. Valuation

4.1 Price/Earnings Ratio

  • PEP is valuated rather expensively with a Price/Earnings ratio of 19.77.
  • 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 28.41, PEP is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 17.98, PEP is valued on the expensive side.
  • 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 25.64, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.77
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

  • PEP's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as PEP.
Industry RankSector Rank
P/FCF 31.26
EV/EBITDA 14.38
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)46.58
PEG (5Y)2.43
EPS Next 2Y2.84%
EPS Next 3Y3.8%

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6

5. Dividend

5.1 Amount

  • PEP has a Yearly Dividend Yield of 3.83%.
  • Compared to an average industry Dividend Yield of 1.74, PEP pays a better dividend. On top of this PEP pays more dividend than 90.91% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, PEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.83%

5.2 History

  • The dividend of PEP is nicely growing with an annual growth rate of 6.80%!
  • PEP has paid a dividend for at least 10 years, which is 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
PEP Yearly Dividends per sharePEP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

  • PEP pays out 104.55% of its income as dividend. 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 2Y2.84%
EPS Next 3Y3.8%
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 2B 4B 6B 8B 10B
PEP Dividend Payout.PEP Dividend Payout, showing the Payout Ratio.PEP Dividend Payout.PayoutRetained Earnings

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PEPSICO INC

NASDAQ:PEP (2/2/2026, 8:00:00 PM)

Premarket: 153.48 -1.72 (-1.11%)

155.2

+1.57 (+1.02%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-09
Earnings (Next)02-03
Inst Owners79.43%
Inst Owner Change-2.54%
Ins Owners0.18%
Ins Owner Change1.7%
Market Cap212.21B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts69.66
Price Target162.35 (4.61%)
Short Float %1.58%
Short Ratio2.78
Dividend
Industry RankSector Rank
Dividend Yield 3.83%
Yearly Dividend5.27
Dividend Growth(5Y)6.8%
DP104.55%
Div Incr Years34
Div Non Decr Years34
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)0%
PT rev (3m)1.17%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 19.77
Fwd PE 17.98
P/S 2.3
P/FCF 31.26
P/OCF 18.05
P/B 10.95
P/tB N/A
EV/EBITDA 14.38
EPS(TTM)7.85
EY5.06%
EPS(NY)8.63
Fwd EY5.56%
FCF(TTM)4.96
FCFY3.2%
OCF(TTM)8.6
OCFY5.54%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)46.58
PEG (5Y)2.43
Graham Number50.04
Profitability
Industry RankSector 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 RankSector 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 3.69
F-Score5
WACC7.86%
ROIC/WACC1.95
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 Y0.42%
EPS Next 2Y2.84%
EPS Next 3Y3.8%
EPS Next 5Y3.75%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.4%
Revenue Next 2Y2.62%
Revenue Next 3Y2.82%
Revenue Next 5Y2.97%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.82%
EBIT Next 3Y11.47%
EBIT Next 5Y8.11%
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.


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.


Can you provide the profitability details for PEPSICO INC?

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


What are the PE and PB ratios of PEPSICO INC (PEP) stock?

The Price/Earnings (PE) ratio for PEPSICO INC (PEP) is 19.77 and the Price/Book (PB) ratio is 10.95.


How sustainable is the dividend of PEPSICO INC (PEP) stock?

The dividend rating of PEPSICO INC (PEP) is 6 / 10 and the dividend payout ratio is 104.55%.