About Pepsico, Inc.
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through six segments: PepsiCo Foods North America; PepsiCo Beverages North America; International Beverages Franchise; Europe, Middle East and Africa; Latin America Foods; and Asia Pacific Foods. It offers cereals, chips, dips, granola bars, oatmeal, pasta, rice, and syrups and mixes; refrigerated dips and spreads; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea and coffee products. The company also provides SodaStream sparkling water makers and related products, as well as various dairy products under the Agusha, Chudo, and Domik v Derevne brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. PepsiCo, Inc. was founded in 1898 and is based in Purchase, New York.
Pepsico, Inc. (PEP) is a Consumer Defensive company in the Beverages - Non-Alcoholic industry with a market capitalisation of $186.2B. The stock trades at 17.87x trailing earnings and yields 4.34%.
- Sector
- Consumer Defensive
- Industry
- Beverages - Non-Alcoholic
- Market cap
- $186.2B
- P/E ratio
- 17.87
- Forward P/E
- 15.19
- EPS (TTM)
- $7.63
- Revenue (TTM)
- $96.9B
- Free cash flow
- $7.8B
- Profit margin
- 10.8%
- Dividend yield
- 4.34%
- Beta
- 0.36
- Shares outstanding
- 1.4B
Financial health: Fair6.4/10
5 strengths, 2 concerns. Weakest points: debt to equity, current ratio.
- Debt to equity: 2.07 (Concern, benchmark < 0.5) — Debt of 2.07x equity is high against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Net debt vs cash flow: 4.3y (Watch, benchmark < 4 years) — Net debt of $32.8B is 4.3x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 0.85 (Concern, benchmark > 1.5) — Short-term assets cover only 0.85x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: 51.5% (Strong, benchmark > 15%) — Earns 51.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 54.2% (Strong, benchmark > 40%) — Keeps 54.2% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 10.8% (Strong, benchmark > 10%) — Turns 10.8% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $7.7B (Strong, benchmark positive) — Generated $7.7B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 6.4% (Watch, benchmark > 10%) — Revenue changed 6.4% year on year, short of the > 10% mark.
- Earnings growth: 137.0% (Strong, benchmark > 10%) — Earnings changed 137.0% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.40 (Watch, benchmark < 1) — At 1.40, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 75.3% (Watch, benchmark < 60%) — Pays out 75.3% of earnings as dividends — above the level usually considered sustainable.