143.52 USD
-0.64 (-0.44%)
143.585 USD
+0.06 (+0.05%)
We assign a fundamental rating of 4 out of 10 to PEP. PEP was compared to 32 industry peers in the Beverages industry. PEP scores excellent on profitability, 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.
In the past year PEP had a positive cash flow from operations.
Each year in the past 5 years PEP has been profitable.
Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
PEP has a Return On Assets (6.78%) which is in line with its industry peers.
PEP has a Return On Equity of 37.26%. This is amongst the best in the industry. PEP outperforms 90.63% of its industry peers.
PEP has a better Return On Invested Capital (15.32%) than 84.38% of its industry peers.
PEP had an Average Return On Invested Capital over the past 3 years of 15.79%. This is above the industry average of 11.65%.
| 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 comparable to the rest of the industry: PEP outperforms 56.25% of its industry peers.
PEP's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 15.49%, PEP is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Operating Margin of PEP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 54.50%, PEP is in the better half of the industry, outperforming 65.63% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PEP is creating value.
Compared to 1 year ago, PEP has about the same amount of shares outstanding.
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 3.58. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
PEP has a better Altman-Z score (3.58) than 65.63% 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 56.25% 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.
Looking at the Debt to Equity ratio, with a value of 2.28, PEP is doing worse than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.99
WACC7.7%
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: 75.00% of the companies in the same industry are doing better.
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.
The Quick ratio of PEP (0.72) 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%.
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
PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
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 Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y4.04%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y3.19%
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
The Price/Earnings ratio is 18.28, which indicates a rather expensive current valuation of PEP.
The rest of the industry has a similar Price/Earnings ratio as PEP.
Compared to an average S&P500 Price/Earnings ratio of 26.51, PEP is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.61 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 (23.13), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 16.61 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.91 | ||
| EV/EBITDA | 13.52 |
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.
The decent profitability rating of PEP may justify a higher PE ratio.
PEG (NY)42.5
PEG (5Y)2.25
EPS Next 2Y2.9%
EPS Next 3Y3.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, PEP has a reasonable but not impressive dividend return.
PEP's Dividend Yield is rather good when compared to the industry average which is at 1.69. PEP pays more dividend than 87.50% of the companies in the same industry.
PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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 2Y2.9%
EPS Next 3Y3.86%
143.52
-0.64 (-0.44%)
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 Cap196.24B
Revenue(TTM)92.37B
Net Income(TTM)7.22B
Analysts68.67
Price Target162.35 (13.12%)
Short Float %1.56%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)1.22%
PT rev (3m)2.34%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 16.61 | ||
| P/S | 2.12 | ||
| P/FCF | 28.91 | ||
| P/OCF | 16.69 | ||
| P/B | 10.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.52 |
EPS(TTM)7.85
EY5.47%
EPS(NY)8.64
Fwd EY6.02%
FCF(TTM)4.96
FCFY3.46%
OCF(TTM)8.6
OCFY5.99%
SpS67.55
BVpS14.18
TBVpS-10.46
PEG (NY)42.5
PEG (5Y)2.25
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 | 3.58 |
F-Score5
WACC7.7%
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 Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y4.04%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y4.94%
Revenue growth 5Y6.46%
Sales Q2Q%2.65%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y3.19%
EBIT growth 1Y-0.41%
EBIT growth 3Y8.98%
EBIT growth 5Y6.67%
EBIT Next Year22.82%
EBIT Next 3Y11.16%
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.
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 18.28 and the Price/Book (PB) ratio is 10.12.
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%.