PEPSICO INC (PEP) Fundamental Analysis & Valuation

NASDAQ:PEP • US7134481081

Current stock price

157.67 USD
-0.71 (-0.45%)
At close:
157.42 USD
-0.25 (-0.16%)
After Hours:

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.
  • In the past year PEP had a positive cash flow from operations.
  • Each year in the past 5 years PEP has been profitable.
  • In the past 5 years PEP always reported a positive cash flow from operatings.
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

  • The Return On Assets of PEP (7.89%) is better than 63.64% of its industry peers.
  • PEP's Return On Equity of 40.84% is amongst the best of the industry. PEP outperforms 96.97% of its industry peers.
  • PEP has a better Return On Invested Capital (16.11%) than 84.85% of its industry peers.
  • PEP had an Average Return On Invested Capital over the past 3 years of 15.94%. This is above the industry average of 11.89%.
  • The last Return On Invested Capital (16.11%) for PEP is above the 3 year average (15.94%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.89%
ROE 40.84%
ROIC 16.11%
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

  • With a decent Profit Margin value of 9.15%, PEP is doing good in the industry, outperforming 60.61% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PEP has declined.
  • PEP has a Operating Margin of 15.92%. This is in the better half of the industry: PEP outperforms 66.67% of its industry peers.
  • PEP's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of PEP (54.38%) is better than 69.70% 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 RankSector Rank
OM 15.92%
PM (TTM) 9.15%
GM 54.38%
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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4

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.
  • The number of shares outstanding for PEP has been reduced compared to 1 year ago.
  • Compared to 5 years ago, PEP has less shares outstanding
  • The debt/assets ratio for PEP is higher compared to a year ago.
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

  • An Altman-Z score of 3.65 indicates that PEP is not in any danger for bankruptcy at the moment.
  • PEP has a better Altman-Z score (3.65) than 69.70% of its industry peers.
  • PEP has a debt to FCF ratio of 5.96. This is a neutral value as PEP would need 5.96 years to pay back of all of its debts.
  • The Debt to FCF ratio of PEP (5.96) is better than 60.61% of its industry peers.
  • A Debt/Equity ratio of 1.99 is on the high side and indicates that PEP has dependencies on debt financing.
  • PEP has a worse Debt to Equity ratio (1.99) than 84.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 5.96
Altman-Z 3.65
ROIC/WACC2.05
WACC7.85%
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

  • A Current Ratio of 0.90 indicates that PEP may have some problems paying its short term obligations.
  • PEP has a worse Current ratio (0.90) than 72.73% of its industry peers.
  • A Quick Ratio of 0.72 indicates that PEP may have some problems paying its short term obligations.
  • PEP's Quick ratio of 0.72 is in line compared to the rest of the industry. PEP outperforms 48.48% of its industry peers.
Industry RankSector Rank
Current Ratio 0.9
Quick Ratio 0.72
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 small growth in Earnings Per Share. In the last year, the EPS has grown by 3.11%.
  • 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 4.29% in the past year.
  • The Revenue has been growing slightly by 5.94% on average over the past years.
EPS 1Y (TTM)3.11%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%8.78%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%8.5%

3.2 Future

  • PEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.96% yearly.
  • Based on estimates for the next years, PEP will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y6.9%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
EPS Next 5Y4.96%
Revenue Next Year5.3%
Revenue Next 2Y4.25%
Revenue Next 3Y4.1%
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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4

4. PEP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.04 indicates a rather expensive valuation of PEP.
  • 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 27.89.
  • Based on the Price/Forward Earnings ratio of 16.96, the valuation of PEP can be described as correct.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PEP.
  • The average S&P500 Price/Forward Earnings ratio is at 38.50. PEP is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 19.04
Fwd PE 16.96
PEP Price Earnings VS Forward Price EarningsPEP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEP is on the same level as its industry peers.
  • 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 RankSector Rank
P/FCF 24.38
EV/EBITDA 13.74
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 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)2.76
PEG (5Y)2.35
EPS Next 2Y6.79%
EPS Next 3Y6.87%

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 3.61%. Purely for dividend investing, there may be better candidates out there.
  • PEP's Dividend Yield is rather good when compared to the industry average which is at 1.67. PEP pays more dividend than 87.88% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, PEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.61%

5.2 History

  • The dividend of PEP is nicely growing with an annual growth rate of 7.00%!
  • PEP has been paying a dividend for at least 10 years, so it has 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 88.42% 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.
DP88.42%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
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 (4/17/2026, 8:00:00 PM)

After market: 157.42 -0.25 (-0.16%)

157.67

-0.71 (-0.45%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)04-16
Earnings (Next)07-15
Inst Owners79.74%
Inst Owner Change-4.53%
Ins Owners0.19%
Ins Owner Change6.06%
Market Cap215.53B
Revenue(TTM)95.45B
Net Income(TTM)8.73B
Analysts70.34
Price Target173.42 (9.99%)
Short Float %1.5%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield 3.61%
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP88.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.41%
Min EPS beat(2)0.01%
Max EPS beat(2)2.81%
EPS beat(4)4
Avg EPS beat(4)1.67%
Min EPS beat(4)0.01%
Max EPS beat(4)3.41%
EPS beat(8)5
Avg EPS beat(8)1.22%
EPS beat(12)9
Avg EPS beat(12)2.17%
EPS beat(16)13
Avg EPS beat(16)2.82%
Revenue beat(2)2
Avg Revenue beat(2)0.96%
Min Revenue beat(2)0.28%
Max Revenue beat(2)1.64%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.4%
Revenue beat(12)4
Avg Revenue beat(12)-0.43%
Revenue beat(16)8
Avg Revenue beat(16)0.48%
PT rev (1m)0.23%
PT rev (3m)6.82%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)1.51%
Valuation
Industry RankSector Rank
PE 19.04
Fwd PE 16.96
P/S 2.26
P/FCF 24.38
P/OCF 16.45
P/B 10.08
P/tB N/A
EV/EBITDA 13.74
EPS(TTM)8.28
EY5.25%
EPS(NY)9.29
Fwd EY5.89%
FCF(TTM)6.47
FCFY4.1%
OCF(TTM)9.58
OCFY6.08%
SpS69.83
BVpS15.64
TBVpS-9.35
PEG (NY)2.76
PEG (5Y)2.35
Graham Number53.9841 (-65.76%)
Profitability
Industry RankSector Rank
ROA 7.89%
ROE 40.84%
ROCE 19.95%
ROIC 16.11%
ROICexc 18.78%
ROICexgc 39.37%
OM 15.92%
PM (TTM) 9.15%
GM 54.38%
FCFM 9.26%
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-Score6
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 5.96
Debt/EBITDA 2.28
Cap/Depr 121.37%
Cap/Sales 4.46%
Interest Coverage 250
Cash Conversion 70.05%
Profit Quality 101.25%
Current Ratio 0.9
Quick Ratio 0.72
Altman-Z 3.65
F-Score6
WACC7.85%
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)3.11%
EPS 3Y6.27%
EPS 5Y8.1%
EPS Q2Q%8.78%
EPS Next Y6.9%
EPS Next 2Y6.79%
EPS Next 3Y6.87%
EPS Next 5Y4.96%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.83%
Revenue growth 5Y5.94%
Sales Q2Q%8.5%
Revenue Next Year5.3%
Revenue Next 2Y4.25%
Revenue Next 3Y4.1%
Revenue Next 5Y3.63%
EBIT growth 1Y4.27%
EBIT growth 3Y6.08%
EBIT growth 5Y7.07%
EBIT Next Year33.67%
EBIT Next 3Y13.94%
EBIT Next 5Y9.35%
FCF growth 1Y22.09%
FCF growth 3Y11.04%
FCF growth 5Y3.78%
OCF growth 1Y2.41%
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 5 / 10 to PEP.


Can you provide the valuation status for PEPSICO INC?

ChartMill assigns a valuation rating of 4 / 10 to PEPSICO INC (PEP). This can be considered as Fairly Valued.


What is the profitability of PEP stock?

PEPSICO INC (PEP) has a profitability rating of 7 / 10.


Can you provide the financial health for PEP stock?

The financial health rating of PEPSICO INC (PEP) is 4 / 10.


Is the dividend of PEPSICO INC sustainable?

The dividend rating of PEPSICO INC (PEP) is 6 / 10 and the dividend payout ratio is 88.42%.