PEPSICO INC (PEP)
US7134481081 - Common Stock
Overall PEP gets a fundamental rating of 5 out of 10. We evaluated PEP against 31 industry peers in the Beverages industry. While PEP has a great profitability rating, there are quite some concerns on its financial health. PEP has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally 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.
Each year in the past 5 years PEP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PEP (9.31%) is better than 70.97% of its industry peers.
Looking at the Return On Equity, with a value of 48.10%, PEP belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
PEP has a better Return On Invested Capital (16.91%) than 90.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEP is in line with the industry average of 13.31%.
The 3 year average ROIC (15.19%) for PEP is below the current ROIC(16.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 48.1% | ||
| ROIC | 16.91% |
ROA(3y)8.98%
ROA(5y)8.78%
ROE(3y)49.49%
ROE(5y)50.17%
ROIC(3y)15.19%
ROIC(5y)14.63%
1.3 Margins
PEP has a better Profit Margin (10.18%) than 61.29% of its industry peers.
PEP's Profit Margin has declined in the last couple of years.
PEP has a Operating Margin (15.67%) which is in line with 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 55.04%. This is in the better half of the industry: PEP outperforms 74.19% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.67% | ||
| PM (TTM) | 10.18% | ||
| GM | 55.04% |
OM growth 3Y-0.12%
OM growth 5Y-1.49%
PM growth 3Y-0.66%
PM growth 5Y-12.51%
GM growth 3Y-0.32%
GM growth 5Y-0.07%
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 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.
2.2 Solvency
An Altman-Z score of 4.00 indicates that PEP is not in any danger for bankruptcy at the moment.
PEP has a Altman-Z score of 4.00. This is in the better half of the industry: PEP outperforms 70.97% of its industry peers.
The Debt to FCF ratio of PEP is 7.26, which is on the high side as it means it would take PEP, 7.26 years of fcf income to pay off all of its debts.
PEP's Debt to FCF ratio of 7.26 is in line compared to the rest of the industry. PEP outperforms 54.84% of its industry peers.
A Debt/Equity ratio of 1.98 is on the high side and indicates that PEP has dependencies on debt financing.
PEP's Debt to Equity ratio of 1.98 is on the low side compared to the rest of the industry. PEP is outperformed by 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 4 |
ROIC/WACC2.1
WACC8.06%
2.3 Liquidity
A Current Ratio of 0.89 indicates that PEP may have some problems paying its short term obligations.
PEP has a worse Current ratio (0.89) than 74.19% of its industry peers.
A Quick Ratio of 0.70 indicates that PEP may have some problems paying its short term obligations.
PEP has a worse Quick ratio (0.70) than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.26% over the past year.
The Earnings Per Share has been growing slightly by 6.16% on average over the past years.
The Revenue has been growing slightly by 0.33% in the past year.
Measured over the past years, PEP shows a small growth in Revenue. The Revenue has been growing by 7.18% on average per year.
EPS 1Y (TTM)6.26%
EPS 3Y11.35%
EPS 5Y6.16%
EPS Q2Q%2.67%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y9.13%
Revenue growth 5Y7.18%
Sales Q2Q%-0.57%
3.2 Future
The Earnings Per Share is expected to grow by 7.12% on average over the next years.
PEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y8.04%
EPS Next 2Y6.98%
EPS Next 3Y7.1%
EPS Next 5Y7.12%
Revenue Next Year0.18%
Revenue Next 2Y1.77%
Revenue Next 3Y2.49%
Revenue Next 5Y4.38%
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 stable.
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
PEP is valuated rather expensively with a Price/Earnings ratio of 20.30.
Based on the Price/Earnings ratio, PEP is valued a bit cheaper than the industry average as 61.29% of the companies are valued more expensively.
PEP is valuated rather cheaply when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
PEP is valuated rather expensively with a Price/Forward Earnings ratio of 18.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PEP indicates a somewhat cheap valuation: PEP is cheaper than 64.52% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PEP to the average of the S&P500 Index (24.01), we can say PEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 18.57 |
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.
PEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.84 | ||
| EV/EBITDA | 14.41 |
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)2.53
PEG (5Y)3.29
EPS Next 2Y6.98%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
PEP has a Yearly Dividend Yield of 3.38%.
PEP's Dividend Yield is rather good when compared to the industry average which is at 3.01. PEP pays more dividend than 83.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, PEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
On average, the dividend of PEP grows each year by 6.87%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.87%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
75.99% of the earnings are spent on dividend by PEP. This is not a sustainable payout ratio.
The dividend of PEP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP75.99%
EPS Next 2Y6.98%
EPS Next 3Y7.1%
PEPSICO INC
NASDAQ:PEP (11/22/2024, 8:00:00 PM)
After market: 161.72 -0.28 (-0.17%)162
+1.66 (+1.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap222.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 18.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.53
PEG (5Y)3.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 48.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.67% | ||
| PM (TTM) | 10.18% | ||
| GM | 55.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.26%
EPS 3Y11.35%
EPS 5Y
EPS Q2Q%
EPS Next Y8.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.33%
Revenue growth 3Y9.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y