162.85 USD
+7.65 (+4.93%)
At close: Feb 3, 2026
162.16 USD
-0.69 (-0.42%)
Pre-Market: 2/4/2026, 4:15:33 AM
PEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. While PEP is still in line with the averages on profitability rating, there are concerns on its financial health. PEP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year PEP was profitable.
- PEP had a positive operating cash flow in the past year.
- PEP had positive earnings in 4 of the past 5 years.
- Of the past 5 years PEP 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.78%, PEP is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- PEP's Return On Equity of 37.26% is amongst the best of the industry. PEP outperforms 90.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 15.32%, PEP belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PEP is above the industry average of 11.45%.
| 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 57.58% of its industry peers.
- In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
- With a decent Operating Margin value of 15.49%, PEP is doing good in the industry, outperforming 69.70% of the companies in the same industry.
- In the last couple of years the Operating Margin of PEP has remained more or less at the same level.
- PEP has a better Gross Margin (54.50%) than 66.67% 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.
- PEP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.76 indicates that PEP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.76, PEP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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 of 7.49. This is comparable 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 | 3.76 |
ROIC/WACC1.93
WACC7.93%
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 Current ratio of 0.91. This is in the lower half of the industry: PEP underperforms 72.73% of its industry peers.
- 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.
- PEP's Quick ratio of 0.72 is in line compared to the rest of the industry. PEP outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.72 |
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.
EPS 1Y (TTM)-0.12%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%15.31%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.61%
3.2 Future
- The Earnings Per Share is expected to grow by 5.12% 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 3.72% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- PEP is valuated rather expensively with a Price/Earnings ratio of 19.98.
- 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 28.18.
- Based on the Price/Forward Earnings ratio of 18.86, the valuation of PEP can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, PEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 18.86 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.8 | ||
| EV/EBITDA | 14.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.36
PEG (5Y)2.47
EPS Next 2Y5.87%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
- PEP has a Yearly Dividend Yield of 3.67%.
- Compared to an average industry Dividend Yield of 1.74, PEP pays a better dividend. On top of this PEP pays more dividend than 84.85% of the companies listed in the same industry.
- PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
- On average, the dividend of PEP grows each year by 6.80%, which is quite nice.
- 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
5.3 Sustainability
- 104.55% of the earnings are spent on dividend by PEP. 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 2Y5.87%
EPS Next 3Y5.24%
162.85
+7.65 (+4.93%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners79.43%
Inst Owner Change-2.54%
Ins Owners0.18%
Ins Owner Change1.7%
Market Cap222.67B
Revenue(TTM)N/A
Net Income(TTM)7.22B
Analysts69.66
Price Target163.12 (0.17%)
Short Float %1.59%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 18.86 | ||
| P/S | 2.41 | ||
| P/FCF | 32.8 | ||
| P/OCF | 18.94 | ||
| P/B | 11.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.97 |
EPS(TTM)8.15
EY5%
EPS(NY)8.64
Fwd EY5.3%
FCF(TTM)4.96
FCFY3.05%
OCF(TTM)8.6
OCFY5.28%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)3.36
PEG (5Y)2.47
Graham Number50.99
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 | 3.76 |
F-Score5
WACC7.93%
ROIC/WACC1.93
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)-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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.61%
Revenue Next Year3.92%
Revenue Next 2Y3.58%
Revenue Next 3Y3.7%
Revenue Next 5Y3.72%
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 19.98 and the Price/Book (PB) ratio is 11.49.
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%.