146.32 USD
-0.25 (-0.17%)
146.033 USD
-0.29 (-0.2%)
Taking everything into account, PEP scores 4 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 expensive valuation and it also scores bad on growth.
1. Profitability
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.
- PEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PEP has a Return On Assets of 6.78%. This is in the better half of the industry: PEP outperforms 60.61% of its industry peers.
- The Return On Equity of PEP (37.26%) is better than 90.91% of its industry peers.
- PEP has a Return On Invested Capital of 15.32%. This is amongst the best in the industry. PEP outperforms 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 11.45%.
| 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 has a Profit Margin (7.82%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of PEP has remained more or less at the same level.
- PEP has a better Operating Margin (15.49%) than 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 has a Gross Margin of 54.50%. This is in the better half 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.
- PEP has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for PEP has been reduced compared to 5 years ago.
- PEP has a worse debt/assets ratio than last year.
2.2 Solvency
- PEP has an Altman-Z score of 3.60. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.60, PEP is doing good in 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.
- Looking at the Debt to FCF ratio, with a value of 7.49, PEP is in line with its industry, outperforming 54.55% of the companies in the same industry.
- 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 | 3.6 |
ROIC/WACC1.96
WACC7.8%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that PEP may have some problems paying its short term obligations.
- The Current ratio of PEP (0.91) is worse 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.
- PEP has a Quick ratio of 0.72. This is comparable 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
- The earnings per share for PEP have decreased by -1.63% in the last year.
- PEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
- Looking at the last year, PEP shows a small growth in Revenue. The Revenue has grown by 0.49% in the last year.
- The Revenue has been growing slightly by 6.46% on average over the past years.
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
- PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.75% yearly.
- Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 2.97% on average per year.
EPS Next Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y3.75%
Revenue Next Year1.39%
Revenue Next 2Y2.56%
Revenue Next 3Y2.74%
Revenue Next 5Y2.97%
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. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.64 indicates a rather expensive valuation of PEP.
- PEP's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of PEP to the average of the S&P500 Index (27.38), we can say PEP is valued slightly cheaper.
- A Price/Forward Earnings ratio of 16.93 indicates a correct valuation of PEP.
- PEP's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (24.29), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PEP.
- PEP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 13.69 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PEP does not grow enough to justify the current Price/Earnings ratio.
- PEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)43.33
PEG (5Y)2.29
EPS Next 2Y2.9%
EPS Next 3Y3.86%
5. Dividend
5.1 Amount
- PEP has a Yearly Dividend Yield of 3.88%.
- PEP's Dividend Yield is rather good when compared to the industry average which is at 1.73. PEP pays more dividend than 93.94% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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 2Y2.9%
EPS Next 3Y3.86%
146.32
-0.25 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-09 2025-10-09/bmo
Earnings (Next)02-02 2026-02-02/amc
Inst Owners79.43%
Inst Owner Change-0.2%
Ins Owners0.18%
Ins Owner Change1.7%
Market Cap200.07B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts69.66
Price Target162.35 (10.96%)
Short Float %1.56%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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)1.25%
PT rev (3m)2.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.93 | ||
| P/S | 2.17 | ||
| P/FCF | 29.47 | ||
| P/OCF | 17.02 | ||
| P/B | 10.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.69 |
EPS(TTM)7.85
EY5.36%
EPS(NY)8.64
Fwd EY5.91%
FCF(TTM)4.96
FCFY3.39%
OCF(TTM)8.6
OCFY5.88%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)43.33
PEG (5Y)2.29
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 | 3.6 |
F-Score5
WACC7.8%
ROIC/WACC1.96
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 Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y3.75%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.39%
Revenue Next 2Y2.56%
Revenue Next 3Y2.74%
Revenue Next 5Y2.97%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.82%
EBIT Next 3Y11.16%
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 18.64 and the Price/Book (PB) ratio is 10.32.
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%.