PEPSICO INC (PEP) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:PEP • US7134481081

170.49 USD
+2.96 (+1.77%)
At close: Feb 6, 2026
170.21 USD
-0.28 (-0.16%)
After Hours: 2/6/2026, 8:00:09 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall PEP gets a fundamental rating of 4 out of 10. We evaluated PEP against 33 industry peers in the Beverages industry. PEP scores excellent on profitability, but there are concerns on its financial health. PEP is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • PEP had positive earnings in the past year.
  • PEP had a positive operating cash flow in the past year.
  • PEP had positive earnings in each of the past 5 years.
  • 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 66.67% of the companies in the same industry.
  • With an excellent Return On Equity value of 40.38%, PEP belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 16.14%, PEP belongs to the best of the industry, outperforming 87.88% 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 11.48%.
  • 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

  • With a decent Profit Margin value of 8.77%, PEP is doing good in the industry, outperforming 63.64% of the companies in the same industry.
  • PEP's Profit Margin has declined in the last couple of years.
  • PEP has a Operating Margin of 15.87%. This is in the better half of the industry: PEP outperforms 69.70% of its industry peers.
  • PEP's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 54.46%, PEP is in the better half of 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PEP is creating value.
  • The number of shares outstanding for PEP has been reduced compared to 1 year ago.
  • PEP has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, PEP has a worse debt to assets ratio.
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

  • PEP has an Altman-Z score of 3.81. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
  • PEP's Altman-Z score of 3.81 is fine compared to the rest of the industry. PEP outperforms 66.67% 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.
  • Looking at the Debt to FCF ratio, with a value of 6.41, PEP is in line with its industry, outperforming 57.58% 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.
  • PEP's Debt to Equity ratio of 2.07 is on the low side compared to the rest of the industry. PEP is outperformed by 90.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Altman-Z 3.81
ROIC/WACC2.05
WACC7.88%
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

  • A Current Ratio of 0.85 indicates that PEP may have some problems paying its short term obligations.
  • PEP has a worse Current ratio (0.85) than 72.73% of its industry peers.
  • PEP has a Quick 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.
  • PEP's Quick ratio of 0.67 is in line compared to the rest of the industry. PEP outperforms 42.42% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • PEP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.12%.
  • The Earnings Per Share has been growing by 8.10% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 2.25% in the past year.
  • PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.
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

  • Based on estimates for the next years, PEP will show a small growth in Earnings Per Share. The EPS will grow by 5.12% on average per year.
  • Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.72% on average per year.
EPS Next Y5.95%
EPS Next 2Y5.87%
EPS Next 3Y5.24%
EPS Next 5Y5.12%
Revenue Next Year3.92%
Revenue Next 2Y3.58%
Revenue Next 3Y3.7%
Revenue Next 5Y3.72%

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.
  • 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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • PEP is valuated rather expensively with a Price/Earnings ratio of 20.92.
  • PEP's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of PEP to the average of the S&P500 Index (27.92), we can say PEP is valued slightly cheaper.
  • PEP is valuated rather expensively with a Price/Forward Earnings ratio of 19.74.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PEP.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. PEP is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.92
Fwd PE 19.74
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 is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 30.39
EV/EBITDA 14.62
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 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)3.51
PEG (5Y)2.58
EPS Next 2Y5.87%
EPS Next 3Y5.24%

More info and screens

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.40%, PEP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.73, PEP pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.83, PEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.4%

5.2 History

  • The dividend of PEP is nicely growing with an annual growth rate of 7.00%!
  • PEP has paid a dividend for at least 10 years, which is a reliable track record.
  • PEP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 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 2Y5.87%
EPS Next 3Y5.24%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

PEPSICO INC

NASDAQ:PEP (2/6/2026, 8:00:09 PM)

After market: 170.21 -0.28 (-0.16%)

170.49

+2.96 (+1.77%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-03
Earnings (Next)04-22
Inst Owners79.43%
Inst Owner Change-2.54%
Ins Owners0.18%
Ins Owner Change1.7%
Market Cap233.12B
Revenue(TTM)93.92B
Net Income(TTM)8.24B
Analysts69.66
Price Target163.12 (-4.32%)
Short Float %1.59%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield 3.4%
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP92.69%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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%
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 20.92
Fwd PE 19.74
P/S 2.48
P/FCF 30.39
P/OCF 19.29
P/B 11.42
P/tB N/A
EV/EBITDA 14.62
EPS(TTM)8.15
EY4.78%
EPS(NY)8.64
Fwd EY5.06%
FCF(TTM)5.61
FCFY3.29%
OCF(TTM)8.84
OCFY5.18%
SpS68.69
BVpS14.92
TBVpS-9.93
PEG (NY)3.51
PEG (5Y)2.58
Graham Number52.31
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 3.81
F-Score5
WACC7.88%
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 Y5.95%
EPS Next 2Y5.87%
EPS Next 3Y5.24%
EPS Next 5Y5.12%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%5.61%
Revenue Next Year3.92%
Revenue Next 2Y3.58%
Revenue Next 3Y3.7%
Revenue Next 5Y3.72%
EBIT growth 1Y1.26%
EBIT growth 3Y6.08%
EBIT growth 5Y7.07%
EBIT Next Year32.46%
EBIT Next 3Y13.38%
EBIT Next 5Y9.69%
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 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 20.92 and the Price/Book (PB) ratio is 11.42.


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 92.69%.