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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 6.41 | ||
| Altman-Z | 3.66 |
ROIC/WACC2.05
WACC7.88%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.67 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 17.3 |
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 | 26.85 | ||
| EV/EBITDA | 13.43 |
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%
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 Rank | Sector 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
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 Fundamentals: All Metrics, Ratios and Statistics
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 2026-02-03/bmo
Earnings (Next)04-22 2026-04-22/bmo
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend5.58
Dividend Growth(5Y)7%
DP92.69%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-06 2026-03-06 (1.4225)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%.