(PEP) PepsiCo - Overview
Sector: Consumer Defensive | Industry: Beverages - Non-Alcoholic | Exchange: NASDAQ (USA) | Market Cap: 203.469m USD | Total Return: 20.4% in 12m
Avg Turnover: 825M
EPS Trend: 84.4%
Qual. Beats: 0
Rev. Trend: 87.7%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
Shakeout
PepsiCo, Inc. is a global leader in the convenient foods and beverages industry, operating a diverse portfolio that includes snacks, dairy, and soft drinks. The company utilizes a vertically integrated business model, managing manufacturing, marketing, and a complex distribution network that spans direct-store-delivery and e-commerce channels.
The consumer staples sector typically exhibits lower volatility than the broader market due to consistent demand for essential food and beverage products. PepsiCo maintains a competitive advantage through its Power of One strategy, which leverages cross-promotion between its snack brands, such as Frito-Lay, and its beverage lines.
Analyzing historical valuation trends on ValueRay can provide deeper insight into the companys long-term performance.
Founded in 1898 and headquartered in Purchase, New York, the company operates through six geographic and product-based segments. Its reach extends across North America, Europe, Latin America, and the Asia Pacific, serving a wide array of retail and wholesale customers.
- Frito-Lay North America volume growth drives total corporate operating profit margins
- Strategic price hikes offset rising agricultural commodity and logistics input costs
- International market expansion in Latin America and Asia fuels organic revenue growth
- Shift toward zero-sugar beverages and healthy snacks responds to changing consumer preferences
- Fluctuating foreign exchange rates impact reported earnings from diversified global operations
| Net Income: 8.74b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -1.41 > 1.0 |
| NWC/Revenue: -3.73% < 20% (prev -8.50%; Δ 4.77% < -1%) |
| CFO/TA 0.12 > 3% & CFO 13.1b > Net Income 8.74b |
| Net Debt (42.6b) to EBITDA (16.5b): 2.58 < 3 |
| Current Ratio: 0.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.37b) vs 12m ago -0.22% < -2% |
| Gross Margin: 54.06% > 18% (prev 0.55%; Δ 5.35k% > 0.5%) |
| Asset Turnover: 88.38% > 50% (prev 91.44%; Δ -3.06% > 0%) |
| Interest Coverage Ratio: 10.59 > 6 (EBITDA TTM 16.5b / Interest Expense TTM 1.16b) |
| A: -0.03 (Total Current Assets 30.9b - Total Current Liabilities 34.5b) / Total Assets 111b |
| B: 0.66 (Retained Earnings 73.2b / Total Assets 111b) |
| C: 0.11 (EBIT TTM 12.3b / Avg Total Assets 108b) |
| D: 0.66 (Book Value of Equity 58.8b / Total Liabilities 89.1b) |
| Altman-Z'' = 3.40 = A |
| DSRI: 0.99 (Receivables 12.2b/12.4b, Revenue 95.4b/96.3b) |
| GMI: 1.01 (GM 54.06% / 54.53%) |
| AQI: 0.36 (AQ_t 0.16 / AQ_t-1 0.46) |
| SGI: 0.99 (Revenue 95.4b / 96.3b) |
| TATA: -0.04 (NI 8.74b - CFO 13.1b) / TA 111b) |
| Beneish M = -3.45 (Cap -4..+1) = AA |
As of May 23, 2026, the stock is trading at USD 148.85 with a total of 4,859,336 shares traded.
Over the past week, the price has changed by +0.97%,
over one month by -2.09%,
over three months by -9.75% and
over the past year by +20.35%.
PepsiCo has received a consensus analysts rating of 3.35. Therefore, it is recommended to hold PEP.
- StrongBuy: 4
- Buy: 2
- Hold: 16
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 171.1 | 14.9% |
P/E Forward = 17.301
P/S = 2.1317
P/B = 9.5143
P/EG = 1.6026
Revenue TTM = 95.4b USD
EBIT TTM = 12.3b USD
EBITDA TTM = 16.5b USD
Long Term Debt = 42.6b USD (from longTermDebt, last quarter)
Short Term Debt = 10.2b USD (from shortTermDebt, last quarter)
Debt = 53.4b USD (from shortLongTermDebtTotal, last quarter) + Leases 719.0m
Net Debt = 42.6b USD (calculated: Debt 53.4b - CCE 10.8b)
Enterprise Value = 246b USD (203b + Debt 53.4b - CCE 10.8b)
Interest Coverage Ratio = 10.59 (Ebit TTM 12.3b / Interest Expense TTM 1.16b)
EV/FCF = 27.83x (Enterprise Value 246b / FCF TTM 8.84b)
FCF Yield = 3.59% (FCF TTM 8.84b / Enterprise Value 246b)
FCF Margin = 9.26% (FCF TTM 8.84b / Revenue TTM 95.4b)
Net Margin = 9.16% (Net Income TTM 8.74b / Revenue TTM 95.4b)
Gross Margin = 54.06% ((Revenue TTM 95.4b - Cost of Revenue TTM 43.9b) / Revenue TTM)
Gross Margin QoQ = 55.19% (prev 53.23%)
Tobins Q-Ratio = 2.22 (Enterprise Value 246b / Total Assets 111b)
Interest Expense / Debt = 2.17% (Interest Expense 1.16b / Debt 53.4b)
Taxrate = 21.28% (632.0m / 2.97b)
NOPAT = 9.65b (EBIT 12.3b * (1 - 21.28%))
Current Ratio = 0.90 (Total Current Assets 30.9b / Total Current Liabilities 34.5b)
Debt / Equity = 2.50 (Debt 53.4b / totalStockholderEquity, last quarter 21.4b)
Debt / EBITDA = 2.58 (Net Debt 42.6b / EBITDA 16.5b)
Debt / FCF = 4.82 (Net Debt 42.6b / FCF TTM 8.84b)
Total Stockholder Equity = 19.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.10% (Net Income 8.74b / Total Assets 111b)
RoE = 43.94% (Net Income TTM 8.74b / Total Stockholder Equity 19.9b)
RoCE = 19.63% (EBIT 12.3b / Capital Employed (Equity 19.9b + L.T.Debt 42.6b))
RoIC = 11.23% (NOPAT 9.65b / Invested Capital 86.0b)
WACC = 5.05% (E(203b)/V(257b) * Re(5.93%) + D(53.4b)/V(257b) * Rd(2.17%) * (1-Tc(0.21)))
Discount Rate = 5.93% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.61 | Cagr: -0.32%
[DCF] Terminal Value 73.83% ; FCFF base≈9.27b ; Y1≈8.46b ; Y5≈7.42b
[DCF] Fair Price = 55.04 (EV 118b - Net Debt 42.6b = Equity 75.2b / Shares 1.37b; r=8.35% [WACC [floored]]; 5y FCF grow -10.77% → 2.50% )
EPS Correlation: 84.37 | EPS CAGR: 3.69% | SUE: 0.43 | # QB: 0
Revenue Correlation: 87.70 | Revenue CAGR: 3.00% | SUE: 0.29 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.23 | Chg30d=+0.75% | Revisions=-78% | Analysts=16
EPS next Quarter (2026-09-30): EPS=2.44 | Chg30d=+0.20% | Revisions=+6% | Analysts=16
EPS current Year (2026-12-31): EPS=8.66 | Chg30d=+0.50% | Revisions=+33% | GrowthEPS=+6.4% | GrowthRev=+5.4%
EPS next Year (2027-12-31): EPS=9.15 | Chg30d=+0.22% | Revisions=+10% | GrowthEPS=+5.6% | GrowthRev=+3.1%
[Analyst] Revisions Ratio: -78%