About Pepsico, Inc.
Pepsico, Inc. (PEP) is a Consumer Defensive company in the Beverages industry with a market capitalisation of $194.5B. The stock trades at 17.87x trailing earnings and yields 4.08%.
- Sector
- Consumer Defensive
- Industry
- Beverages
- Market cap
- $194.5B
- P/E ratio
- 17.87
- EPS (TTM)
- $6.00
- Revenue (TTM)
- $93.9B
- Free cash flow
- $7.7B
- Profit margin
- 8.8%
- Dividend yield
- 4.08%
- Shares outstanding
- 1.4B
Financial health: Weak4.5/10
3 strengths, 4 concerns. Weakest points: debt to equity, current ratio, earnings growth and 1 more.
- 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: 40.4% (Strong, benchmark > 15%) — Earns 40.4% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 54.1% (Strong, benchmark > 40%) — Keeps 54.1% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 8.8% (Watch, benchmark > 10%) — Turns 8.8% of revenue into profit, short of 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: 2.2% (Watch, benchmark > 10%) — Revenue changed 2.2% year on year, short of the > 10% mark.
- Earnings growth: -14.0% (Concern, benchmark > 10%) — Earnings changed -14.0% year on year, well short of the > 10% mark.
- Payout ratio: 92.7% (Concern, benchmark < 60%) — Pays out 92.7% of earnings as dividends — above the level usually considered sustainable.