PEPSICO INC (PEP) Fundamental Analysis & Valuation

NASDAQ:PEP • US7134481081

160.15 USD
-0.63 (-0.39%)
At close: Mar 11, 2026
159.35 USD
-0.8 (-0.5%)
After Hours: 3/11/2026, 8:19:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

Overall PEP gets a fundamental rating of 5 out of 10. We evaluated PEP against 33 industry peers in the Beverages industry. While PEP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PEP is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. PEP Profitability Analysis

1.1 Basic Checks

  • PEP had positive earnings in the past year.
  • PEP had a positive operating cash flow in the past year.
  • In the past 5 years PEP has always been profitable.
  • 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 63.64% of the companies in the same industry.
  • PEP has a Return On Equity of 40.38%. This is amongst the best in the industry. PEP outperforms 93.94% of its industry peers.
  • With an excellent Return On Invested Capital value of 16.14%, PEP belongs to the best 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 11.84%.
  • The 3 year average ROIC (15.94%) for PEP is below the current ROIC(16.14%), indicating increased profibility in the last year.
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

  • PEP's Profit Margin of 8.77% is fine compared to the rest of the industry. PEP outperforms 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 (15.87%) than 69.70% of its industry peers.
  • PEP's Operating Margin has been stable in the last couple of years.
  • With a decent Gross Margin value of 54.46%, PEP is doing good in the industry, outperforming 69.70% of the companies in the same industry.
  • In the last couple of years the Gross Margin of PEP has remained more or less at the same level.
Industry RankSector Rank
OM 15.87%
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

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • PEP has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for PEP has been reduced compared to 5 years ago.
  • 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

  • An Altman-Z score of 3.74 indicates that PEP is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of PEP (3.74) is better than 69.70% 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 better than 60.61% of its industry peers.
  • 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 84.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Altman-Z 3.74
ROIC/WACC2.08
WACC7.77%
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 Current ratio of 0.85. This is in the lower half of the industry: PEP underperforms 72.73% of its industry peers.
  • A Quick Ratio of 0.67 indicates that PEP may have some problems paying its short term obligations.
  • PEP has a Quick ratio of 0.67. This is in the lower half of the industry: PEP underperforms 60.61% 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. PEP Growth Analysis

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.
  • Measured over the past years, PEP shows a small growth in Revenue. The Revenue has been growing by 5.94% on average per year.
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.
  • Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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. PEP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 19.65, PEP is valued on the expensive side.
  • The rest of the industry has a similar Price/Earnings ratio as PEP.
  • When comparing the Price/Earnings ratio of PEP to the average of the S&P500 Index (26.15), we can say PEP is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 18.38 indicates a rather expensive valuation of PEP.
  • PEP's Price/Forward Earnings is on the same level as the industry average.
  • PEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.27, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.65
Fwd PE 18.38
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.
  • PEP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 28.53
EV/EBITDA 14.11
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.
  • PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)2.42
EPS Next 2Y6.81%
EPS Next 3Y6.89%

More info and screens

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 3.54%. Purely for dividend investing, there may be better candidates out there.
  • PEP's Dividend Yield is rather good when compared to the industry average which is at 1.69. PEP pays more dividend than 81.82% of the companies in the same industry.
  • PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.54%

5.2 History

  • The dividend of PEP is nicely growing with an annual growth rate of 7.00%!
  • 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)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 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 2Y6.81%
EPS Next 3Y6.89%
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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Find the best dividend stocksShow peers with best dividend

PEP Fundamentals: All Metrics, Ratios and Statistics

PEPSICO INC

NASDAQ:PEP (3/11/2026, 8:19:03 PM)

After market: 159.35 -0.8 (-0.5%)

160.15

-0.63 (-0.39%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-03
Earnings (Next)04-22
Inst Owners79.78%
Inst Owner Change0.13%
Ins Owners0.18%
Ins Owner Change6.2%
Market Cap218.87B
Revenue(TTM)93.92B
Net Income(TTM)8.24B
Analysts70.34
Price Target173.02 (8.04%)
Short Float %2.18%
Short Ratio3.46
Dividend
Industry RankSector Rank
Dividend Yield 3.54%
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP92.69%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06
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)-2.43%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.97%
Valuation
Industry RankSector Rank
PE 19.65
Fwd PE 18.38
P/S 2.33
P/FCF 28.53
P/OCF 18.11
P/B 10.73
P/tB N/A
EV/EBITDA 14.11
EPS(TTM)8.15
EY5.09%
EPS(NY)8.71
Fwd EY5.44%
FCF(TTM)5.61
FCFY3.51%
OCF(TTM)8.84
OCFY5.52%
SpS68.73
BVpS14.93
TBVpS-9.93
PEG (NY)2.84
PEG (5Y)2.42
Graham Number52.33
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 3.74
F-Score5
WACC7.77%
ROIC/WACC2.08
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 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 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 19.65 and the Price/Book (PB) ratio is 10.73.


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%.