145.02 USD
-1.89 (-1.29%)
145.02 USD
0 (0%)
Taking everything into account, PEP scores 5 out of 10 in our fundamental rating. PEP was compared to 33 industry peers in the Beverages industry. PEP has an excellent profitability rating, but there are concerns on its financial health. PEP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PEP was profitable.
PEP had a positive operating cash flow in the past year.
In the past 5 years PEP has always been profitable.
Each year in the past 5 years PEP 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 63.64% of the companies in the same industry.
The Return On Equity of PEP (37.26%) is better than 93.94% of its industry peers.
PEP has a better Return On Invested Capital (15.32%) than 84.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEP is above the industry average of 11.60%.
| 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 has a Profit Margin of 7.82%. This is in the better half of the industry: PEP outperforms 60.61% of its industry peers.
In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
PEP's Operating Margin of 15.49% is fine compared to the rest of the industry. PEP outperforms 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's Gross Margin of 54.50% is fine compared to the rest of the industry. PEP outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of PEP has remained more or less at the same level.
| 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.
The number of shares outstanding for PEP remains at a similar level compared to 1 year ago.
The number of shares outstanding for PEP has been reduced compared to 5 years ago.
Compared to 1 year ago, PEP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.61 indicates that PEP is not in any danger for bankruptcy at the moment.
PEP's Altman-Z score of 3.61 is fine compared to the rest of the industry. PEP outperforms 69.70% 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'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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.99
WACC7.68%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PEP may have some problems paying its short term obligations.
PEP has a worse Current ratio (0.91) than 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.
Looking at the Quick ratio, with a value of 0.72, PEP is in line with its industry, outperforming 45.45% of the companies in the same industry.
| 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 -1.63%.
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%.
PEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
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
The Earnings Per Share is expected to grow by 4.04% on average over the next years.
The Revenue is expected to grow by 3.19% on average over the next years.
EPS Next Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.8%
EPS Next 5Y4.04%
Revenue Next Year1.41%
Revenue Next 2Y2.39%
Revenue Next 3Y2.67%
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.
When comparing the Revenue 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
The Price/Earnings ratio is 18.47, which indicates a rather expensive current valuation of PEP.
PEP's Price/Earnings ratio is a bit cheaper when compared to the industry. PEP is cheaper than 60.61% of the companies in the same industry.
PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
A Price/Forward Earnings ratio of 16.76 indicates a correct valuation of PEP.
The rest of the industry has a similar Price/Forward Earnings ratio as PEP.
PEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.76 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as PEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.21 | ||
| EV/EBITDA | 13.73 |
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)45.38
PEG (5Y)2.27
EPS Next 2Y2.98%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.85%.
Compared to an average industry Dividend Yield of 3.05, PEP pays a better dividend. On top of this PEP pays more dividend than 87.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 2Y2.98%
EPS Next 3Y3.8%
145.02
-1.89 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.94%
Inst Owner Change-0.99%
Ins Owners0.17%
Ins Owner Change1.78%
Market Cap198.29B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target160.4 (10.61%)
Short Float %6.95%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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)1.36%
PT rev (3m)1.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.76 | ||
| P/S | 2.15 | ||
| P/FCF | 29.21 | ||
| P/OCF | 16.87 | ||
| P/B | 10.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)7.85
EY5.41%
EPS(NY)8.65
Fwd EY5.97%
FCF(TTM)4.96
FCFY3.42%
OCF(TTM)8.6
OCFY5.93%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)45.38
PEG (5Y)2.27
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 | 3.61 |
F-Score5
WACC7.68%
ROIC/WACC1.99
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 Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.8%
EPS Next 5Y4.04%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.41%
Revenue Next 2Y2.39%
Revenue Next 3Y2.67%
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 5Y8.64%
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 5 / 10 to PEP.
What is the valuation status for PEP stock?
ChartMill assigns a valuation rating of 4 / 10 to PEPSICO INC (PEP). This can be considered as Fairly Valued.
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 18.47 and the Price/Book (PB) ratio is 10.23.
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%.