PEPSICO INC (PEP) Fundamental Analysis & Valuation

NASDAQ:PEP • US7134481081

Current stock price

150.72 USD
-1.01 (-0.67%)
Last:

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

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.
  • Each year in the past 5 years PEP has been profitable.
  • PEP had a positive operating cash flow in each of the past 5 years.
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

  • PEP's Return On Assets of 7.67% is fine compared to the rest of the industry. PEP outperforms 64.71% of its industry peers.
  • PEP has a better Return On Equity (40.38%) than 94.12% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 16.14%, 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 11.81%.
  • The last Return On Invested Capital (16.14%) for PEP is above the 3 year average (15.94%), which is a sign of increasing profitability.
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 has a better Profit Margin (8.77%) than 61.76% of its industry peers.
  • PEP's Profit Margin has declined in the last couple of years.
  • PEP's Operating Margin of 15.87% is fine compared to the rest of the industry. PEP outperforms 67.65% 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 54.46%. This is in the better half of the industry: PEP outperforms 70.59% of its industry peers.
  • PEP's Gross Margin has been stable in the last couple of years.
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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3

2. PEP Health Analysis

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 less shares outstanding
  • PEP has less shares outstanding than it did 5 years ago.
  • PEP has a worse debt/assets ratio than last year.
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

  • PEP has an Altman-Z score of 3.66. This indicates that PEP is financially healthy and has little risk of bankruptcy at the moment.
  • PEP has a Altman-Z score of 3.66. This is in the better half of the industry: PEP outperforms 70.59% 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 comparable to the rest of the industry.
  • PEP has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of PEP (2.07) is worse than 85.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 6.41
Altman-Z 3.66
ROIC/WACC2.05
WACC7.88%
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

  • PEP has a Current Ratio of 0.85. 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 (0.85) than 70.59% of its industry peers.
  • PEP has a Quick Ratio of 0.85. This is a bad value and indicates that PEP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.67, PEP is in line with its industry, outperforming 41.18% of the companies in the same industry.
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

  • Based on estimates for the next years, PEP will show a small growth in Earnings Per Share. The EPS will grow by 4.96% on average per year.
  • The Revenue is expected to grow by 3.63% on average over the next years.
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

  • 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.
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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3

4. PEP Valuation Analysis

4.1 Price/Earnings Ratio

  • PEP is valuated rather expensively with a Price/Earnings ratio of 18.49.
  • PEP's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, PEP is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 17.30, PEP is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PEP.
  • The average S&P500 Price/Forward Earnings ratio is at 22.79. PEP is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.49
Fwd PE 17.3
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

  • 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 RankSector Rank
P/FCF 26.85
EV/EBITDA 13.43
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)2.67
PEG (5Y)2.28
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 3.73%.
  • Compared to an average industry Dividend Yield of 1.85, PEP pays a bit more dividend than its industry peers.
  • PEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.73%

5.2 History

  • The dividend of PEP is nicely growing with an annual growth rate of 7.00%!
  • 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)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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PEP Fundamentals: All Metrics, Ratios and Statistics

PEPSICO INC

NASDAQ:PEP (3/26/2026, 3:53:09 PM)

150.72

-1.01 (-0.67%)

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 Change4.86%
Ins Owners0.18%
Ins Owner Change6.59%
Market Cap205.98B
Revenue(TTM)93.92B
Net Income(TTM)8.24B
Analysts70.34
Price Target173.02 (14.8%)
Short Float %1.53%
Short Ratio2.52
Dividend
Industry RankSector Rank
Dividend Yield 3.73%
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)0%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.97%
Valuation
Industry RankSector Rank
PE 18.49
Fwd PE 17.3
P/S 2.19
P/FCF 26.85
P/OCF 17.04
P/B 10.09
P/tB N/A
EV/EBITDA 13.43
EPS(TTM)8.15
EY5.41%
EPS(NY)8.71
Fwd EY5.78%
FCF(TTM)5.61
FCFY3.72%
OCF(TTM)8.84
OCFY5.87%
SpS68.73
BVpS14.93
TBVpS-9.93
PEG (NY)2.67
PEG (5Y)2.28
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 3.66
F-Score5
WACC7.88%
ROIC/WACC2.05
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 Fundamental Analysis 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 18.49 and the Price/Book (PB) ratio is 10.09.


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%.