148.16 USD
-1.21 (-0.81%)
148 USD
-0.16 (-0.11%)
We assign a fundamental rating of 4 out of 10 to PEP. 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 is valued expensive and 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.
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
The Return On Assets of PEP (6.78%) is better than 61.76% of its industry peers.
PEP has a better Return On Equity (37.26%) than 91.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.32%, 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 11.55%.
| 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 in line with its industry peers.
PEP's Profit Margin has been stable in the last couple of years.
The Operating Margin of PEP (15.49%) is better than 70.59% of its industry peers.
PEP's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 54.50%, PEP is doing good in the industry, outperforming 67.65% of the companies in the same industry.
PEP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, PEP has about the same amount of shares outstanding.
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
An Altman-Z score of 3.63 indicates that PEP is not in any danger for bankruptcy at the moment.
PEP has a better Altman-Z score (3.63) than 70.59% of its industry peers.
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 55.88% of the companies in the same industry.
PEP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
PEP has a worse Debt to Equity ratio (2.28) than 91.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.98
WACC7.74%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PEP may have some problems paying its short term obligations.
With a Current ratio value of 0.91, PEP is not doing good in the industry: 73.53% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
PEP has a Quick ratio (0.72) which is comparable to the rest of the industry.
| 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.
Measured over the past years, PEP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.13% on average per year.
PEP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.49%.
Measured over the past years, PEP shows a small growth in Revenue. The Revenue has been growing by 6.46% on average per year.
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.
Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y0.41%
EPS Next 2Y2.98%
EPS Next 3Y3.79%
EPS Next 5Y4.04%
Revenue Next Year1.42%
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.
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
PEP is valuated rather expensively with a Price/Earnings ratio of 18.87.
Compared to the rest of the industry, the Price/Earnings ratio of PEP is on the same level as its industry peers.
PEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
A Price/Forward Earnings ratio of 17.12 indicates a rather expensive valuation of PEP.
PEP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (23.83), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PEP.
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 | 29.84 | ||
| EV/EBITDA | 13.92 |
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)45.86
PEG (5Y)2.32
EPS Next 2Y2.98%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.81%.
Compared to an average industry Dividend Yield of 1.77, PEP pays a better dividend. On top of this PEP pays more dividend than 88.24% 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of PEP is nicely growing with an annual growth rate of 6.80%!
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)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.
The dividend of PEP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.55%
EPS Next 2Y2.98%
EPS Next 3Y3.79%
148.16
-1.21 (-0.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner Change-0.96%
Ins Owners0.18%
Ins Owner Change1.73%
Market Cap202.59B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target160.36 (8.23%)
Short Float %1.5%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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)-0.08%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.55%
EPS NY rev (1m)0%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 17.12 | ||
| P/S | 2.19 | ||
| P/FCF | 29.84 | ||
| P/OCF | 17.23 | ||
| P/B | 10.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.92 |
EPS(TTM)7.85
EY5.3%
EPS(NY)8.65
Fwd EY5.84%
FCF(TTM)4.96
FCFY3.35%
OCF(TTM)8.6
OCFY5.8%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)45.86
PEG (5Y)2.32
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 | 3.63 |
F-Score5
WACC7.74%
ROIC/WACC1.98
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 3Y3.79%
EPS Next 5Y4.04%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.42%
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 Year22.76%
EBIT Next 3Y10.86%
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 4 / 10 to PEP.
What is the valuation status for PEP stock?
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 is the valuation of PEPSICO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PEPSICO INC (PEP) is 18.87 and the Price/Book (PB) ratio is 10.45.
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%.