PEPSICO INC (PEP) Fundamental Analysis & Valuation

NASDAQ:PEP • US7134481081

Current stock price

155.44 USD
-0.26 (-0.17%)
At close:
155.44 USD
0 (0%)
After Hours:

This PEP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. PEP Profitability Analysis

1.1 Basic Checks

  • PEP had positive earnings in the past year.
  • In the past year PEP had a positive cash flow from operations.
  • 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

  • PEP has a better Return On Assets (7.89%) than 63.64% of its industry peers.
  • With an excellent Return On Equity value of 40.84%, PEP belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
  • PEP has a better Return On Invested Capital (16.11%) than 84.85% of its industry peers.
  • PEP had an Average Return On Invested Capital over the past 3 years of 15.94%. This is above the industry average of 11.89%.
  • The 3 year average ROIC (15.94%) for PEP is below the current ROIC(16.11%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.89%
ROE 40.84%
ROIC 16.11%
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

  • PEP has a better Profit Margin (9.15%) than 60.61% of its industry peers.
  • In the last couple of years the Profit Margin of PEP has declined.
  • PEP has a better Operating Margin (15.92%) than 66.67% 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 better Gross Margin (54.38%) than 69.70% 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 RankSector Rank
OM 15.92%
PM (TTM) 9.15%
GM 54.38%
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

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4

2. PEP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PEP is creating value.
  • Compared to 1 year ago, PEP has less shares outstanding
  • Compared to 5 years ago, PEP has less shares outstanding
  • 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 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 3.63. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
  • PEP's Altman-Z score of 3.63 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 5.96, which is a neutral value as it means it would take PEP, 5.96 years of fcf income to pay off all of its debts.
  • PEP has a Debt to FCF ratio of 5.96. This is in the better half of the industry: PEP outperforms 60.61% of its industry peers.
  • PEP has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
  • PEP has a Debt to Equity ratio of 1.99. This is amonst the worse of the industry: PEP underperforms 84.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 5.96
Altman-Z 3.63
ROIC/WACC2.04
WACC7.91%
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 0.90 indicates that PEP may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.90, PEP is doing worse than 72.73% of the companies in the same industry.
  • PEP has a Quick Ratio of 0.90. This is a bad value and indicates that PEP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.72, PEP perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.9
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 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. PEP Growth Analysis

3.1 Past

  • PEP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.11%.
  • 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.
  • Looking at the last year, PEP shows a small growth in Revenue. The Revenue has grown by 4.29% in the last 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)3.11%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%8.78%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%8.5%

3.2 Future

  • PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.21% yearly.
  • The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y6.9%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
EPS Next 5Y5.21%
Revenue Next Year5.3%
Revenue Next 2Y4.25%
Revenue Next 3Y4.1%
Revenue Next 5Y3.75%

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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4

4. PEP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.77 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.
  • PEP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
  • PEP is valuated correctly with a Price/Forward Earnings ratio of 16.72.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (22.62), we can say PEP is valued slightly cheaper.
Industry RankSector Rank
PE 18.77
Fwd PE 16.72
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEP is on the same level as its industry peers.
  • PEP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PEP is cheaper than 60.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.03
EV/EBITDA 13.6
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)2.72
PEG (5Y)2.32
EPS Next 2Y6.79%
EPS Next 3Y6.87%

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

6

5. PEP Dividend Analysis

5.1 Amount

  • PEP has a Yearly Dividend Yield of 3.65%.
  • Compared to an average industry Dividend Yield of 1.68, PEP pays a better dividend. On top of this PEP pays more dividend than 87.88% 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 1.81.
Industry RankSector Rank
Dividend Yield 3.65%

5.2 History

  • On average, the dividend of PEP grows each year by 7.00%, 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 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 2026 1 2 3 4 5

5.3 Sustainability

  • PEP pays out 88.42% 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.
DP88.42%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
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

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PEP Fundamentals: All Metrics, Ratios and Statistics

PEPSICO INC

NASDAQ:PEP (4/24/2026, 5:20:01 PM)

After market: 155.44 0 (0%)

155.44

-0.26 (-0.17%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)04-16
Earnings (Next)07-15
Inst Owners79.74%
Inst Owner Change-4.53%
Ins Owners0.19%
Ins Owner Change6.06%
Market Cap212.48B
Revenue(TTM)95.45B
Net Income(TTM)8.73B
Analysts70.34
Price Target173.42 (11.57%)
Short Float %1.5%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield 3.65%
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP88.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.41%
Min EPS beat(2)0.01%
Max EPS beat(2)2.81%
EPS beat(4)4
Avg EPS beat(4)1.67%
Min EPS beat(4)0.01%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.22%
EPS beat(12)9
Avg EPS beat(12)2.17%
EPS beat(16)13
Avg EPS beat(16)2.82%
Revenue beat(2)2
Avg Revenue beat(2)0.96%
Min Revenue beat(2)0.28%
Max Revenue beat(2)1.64%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.4%
Revenue beat(12)4
Avg Revenue beat(12)-0.43%
Revenue beat(16)8
Avg Revenue beat(16)0.48%
PT rev (1m)0.23%
PT rev (3m)6.82%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)1.51%
Valuation
Industry RankSector Rank
PE 18.77
Fwd PE 16.72
P/S 2.23
P/FCF 24.03
P/OCF 16.22
P/B 9.94
P/tB N/A
EV/EBITDA 13.6
EPS(TTM)8.28
EY5.33%
EPS(NY)9.29
Fwd EY5.98%
FCF(TTM)6.47
FCFY4.16%
OCF(TTM)9.58
OCFY6.17%
SpS69.83
BVpS15.64
TBVpS-9.35
PEG (NY)2.72
PEG (5Y)2.32
Graham Number53.9841 (-65.27%)
Profitability
Industry RankSector Rank
ROA 7.89%
ROE 40.84%
ROCE 19.95%
ROIC 16.11%
ROICexc 18.78%
ROICexgc 39.37%
OM 15.92%
PM (TTM) 9.15%
GM 54.38%
FCFM 9.26%
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-Score6
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 5.96
Debt/EBITDA 2.28
Cap/Depr 121.37%
Cap/Sales 4.46%
Interest Coverage 250
Cash Conversion 70.05%
Profit Quality 101.25%
Current Ratio 0.9
Quick Ratio 0.72
Altman-Z 3.63
F-Score6
WACC7.91%
ROIC/WACC2.04
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)3.11%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%8.78%
EPS Next Y6.9%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
EPS Next 5Y5.21%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%8.5%
Revenue Next Year5.3%
Revenue Next 2Y4.25%
Revenue Next 3Y4.1%
Revenue Next 5Y3.75%
EBIT growth 1Y4.27%
EBIT growth 3Y6.08%
EBIT growth 5Y7.07%
EBIT Next Year33.67%
EBIT Next 3Y13.94%
EBIT Next 5Y9.44%
FCF growth 1Y22.09%
FCF growth 3Y11.04%
FCF growth 5Y3.78%
OCF growth 1Y2.41%
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 5 / 10 to PEP.


Can you provide the valuation status for PEPSICO INC?

ChartMill assigns a valuation rating of 4 / 10 to PEPSICO INC (PEP). This can be considered as Fairly Valued.


What is the profitability of PEP stock?

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


Can you provide the financial health for PEP stock?

The financial health rating of PEPSICO INC (PEP) is 4 / 10.


Is the dividend of PEPSICO INC sustainable?

The dividend rating of PEPSICO INC (PEP) is 6 / 10 and the dividend payout ratio is 88.42%.