PEPSICO INC (PEP) Fundamental Analysis & Valuation
NASDAQ:PEP • US7134481081
Current stock price
152.54 USD
+0.81 (+0.53%)
Last:
This PEP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. PEP Profitability Analysis
1.1 Basic Checks
- In the past year PEP was profitable.
- PEP had a positive operating cash flow in the past year.
- Each year in the past 5 years PEP has been profitable.
- Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of PEP (7.67%) is better than 64.71% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for PEP 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 Rank | Sector 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%
1.3 Margins
- PEP has a better Profit Margin (8.77%) than 61.76% of its industry peers.
- PEP's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 15.87%, PEP is doing good in the industry, outperforming 67.65% 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 Gross Margin of 54.46%. This is in the better half of the industry: PEP outperforms 70.59% of its industry peers.
- PEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. PEP Health Analysis
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.
- Compared to 5 years ago, PEP has less shares outstanding
- Compared to 1 year ago, PEP has a worse debt to assets ratio.
2.2 Solvency
- PEP has an Altman-Z score of 3.66. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of PEP (3.66) is better than 70.59% of its industry peers.
- PEP has a debt to FCF ratio of 6.41. This is a slightly negative value and a sign of low solvency as PEP would need 6.41 years to pay back of all of its debts.
- The Debt to FCF ratio of PEP (6.41) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.07 is on the high side and indicates that PEP has dependencies on debt financing.
- PEP has a worse Debt to Equity ratio (2.07) than 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 6.41 | ||
| Altman-Z | 3.66 |
ROIC/WACC2.05
WACC7.88%
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.
- PEP's Current ratio of 0.85 is on the low side compared to the rest of the industry. PEP is outperformed by 70.59% of its industry peers.
- A Quick Ratio of 0.67 indicates that PEP may have some problems paying its short term obligations.
- PEP's Quick ratio of 0.67 is in line compared to the rest of the industry. PEP outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.67 |
3. PEP Growth Analysis
3.1 Past
- The earnings per share for PEP have decreased by -0.12% in the last year.
- Measured over the past years, PEP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
- The Revenue has been growing slightly by 2.25% in the past year.
- The Revenue has been growing slightly by 5.94% on average over the past years.
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.
- The Revenue is expected to grow by 3.63% on average over the next years.
EPS Next Y6.92%
EPS Next 2Y6.81%
EPS Next 3Y6.89%
EPS Next 5Y4.96%
Revenue Next Year5.43%
Revenue Next 2Y4.3%
Revenue Next 3Y4.07%
Revenue Next 5Y3.63%
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.
4. PEP Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.72 indicates a rather expensive valuation of PEP.
- Compared to the rest of the industry, the Price/Earnings ratio of PEP is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 25.61. PEP is valued slightly cheaper when compared to this.
- PEP is valuated rather expensively with a Price/Forward Earnings ratio of 17.51.
- PEP's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, PEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 17.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEP is on the same level as its industry peers.
- 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 | 27.17 | ||
| EV/EBITDA | 13.43 |
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)2.7
PEG (5Y)2.31
EPS Next 2Y6.81%
EPS Next 3Y6.89%
5. PEP Dividend Analysis
5.1 Amount
- PEP has a Yearly Dividend Yield of 3.73%.
- PEP's Dividend Yield is a higher than the industry average which is at 1.85.
- PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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
5.3 Sustainability
- 92.69% of the earnings are spent on dividend by PEP. 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 Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:PEP (3/26/2026, 9:50:04 AM)
152.54
+0.81 (+0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners79.78%
Inst Owner Change4.86%
Ins Owners0.18%
Ins Owner Change6.59%
Market Cap208.47B
Revenue(TTM)93.92B
Net Income(TTM)8.24B
Analysts70.34
Price Target173.02 (13.43%)
Short Float %1.53%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP92.69%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06 2026-03-06 (1.4225)
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)6.07%
PT rev (3m)7.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 17.51 | ||
| P/S | 2.22 | ||
| P/FCF | 27.17 | ||
| P/OCF | 17.25 | ||
| P/B | 10.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.43 |
EPS(TTM)8.15
EY5.34%
EPS(NY)8.71
Fwd EY5.71%
FCF(TTM)5.61
FCFY3.68%
OCF(TTM)8.84
OCFY5.8%
SpS68.73
BVpS14.93
TBVpS-9.93
PEG (NY)2.7
PEG (5Y)2.31
Graham Number52.33
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.66 |
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 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 Year5.43%
Revenue Next 2Y4.3%
Revenue Next 3Y4.07%
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.
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 18.72 and the Price/Book (PB) ratio is 10.22.
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%.