146.32 USD
-0.25 (-0.17%)
146.033 USD
-0.29 (-0.2%)
Overall PEP gets a fundamental rating of 4 out of 10. We evaluated PEP against 33 industry peers in the Beverages industry. While PEP has a great profitability rating, there are quite some concerns on its financial health. PEP does not seem to be growing, but still is valued expensively. PEP also has an excellent dividend rating.
1. Profitability
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.
1.2 Ratios
- The Return On Assets of PEP (6.78%) is better than 60.61% of its industry peers.
- PEP has a Return On Equity of 37.26%. This is amongst the best in the industry. PEP outperforms 90.91% of its industry peers.
- The Return On Invested Capital of PEP (15.32%) is better than 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
- The Profit Margin of PEP (7.82%) is comparable to the rest of the industry.
- PEP's Profit Margin has been stable in the last couple of years.
- The Operating Margin of PEP (15.49%) is better than 69.70% of its industry peers.
- PEP's Operating Margin has been stable in the last couple of years.
- PEP has a better Gross Margin (54.50%) than 66.67% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PEP is creating value.
- The number of shares outstanding for PEP remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, PEP has less shares outstanding
- PEP has a worse debt/assets ratio than last year.
2.2 Solvency
- PEP has an Altman-Z score of 3.61. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.61, PEP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Debt to FCF ratio of PEP is 7.49, which is on the high side as it means it would take PEP, 7.49 years of fcf income to pay off all of its debts.
- PEP has a Debt to FCF ratio (7.49) which is in line with its industry peers.
- A Debt/Equity ratio of 2.28 is on the high side and indicates that PEP has dependencies on debt financing.
- PEP's Debt to Equity ratio of 2.28 is on the low side compared to the rest of the industry. PEP is outperformed by 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.96
WACC7.8%
2.3 Liquidity
- PEP has a Current 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 worse Current ratio (0.91) 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 (0.72) which is in line with 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.
- 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%.
- 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
- Based on estimates for the next years, PEP will show a small growth in Earnings Per Share. The EPS will grow by 3.75% on average per year.
- The Revenue is expected to grow by 2.97% on average over the next years.
EPS Next Y0.43%
EPS Next 2Y2.9%
EPS Next 3Y3.86%
EPS Next 5Y3.75%
Revenue Next Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- PEP is valuated rather expensively with a Price/Earnings ratio of 18.64.
- 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 (27.47), we can say PEP is valued slightly cheaper.
- A Price/Forward Earnings ratio of 16.93 indicates a correct valuation of PEP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, PEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.93 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 13.71 |
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)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 4.08%, which is a nice return.
- PEP's Dividend Yield is rather good when compared to the industry average which is at 1.77. PEP pays more dividend than 93.94% of the companies in the same industry.
- PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 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 2Y2.9%
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)02-03 2026-02-03/amc
Inst Owners79.43%
Inst Owner Change-0.18%
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 | 4.08% |
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)0.07%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.36%
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 | 13.71 |
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 | 3.61 |
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 Year1.4%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
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 7 / 10 and the dividend payout ratio is 104.55%.