Why PepsiCo's (NASDAQ:PEP) Earnings Are Better Than They Seem
Feb 17
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U.S. Beverage Industry Analysis
UpdatedFeb 17, 2025
DataAggregated Company Financials
Companies59
- 7D3.8%
- 3M-1.6%
- 1Y-4.7%
- YTD0.7%
Over the last 7 days, the Beverage industry has risen 3.8%, driven by gains from Coca-Cola of 6.7%. However, the industry is down 4.7% over the past year. As for the next few years, earnings are expected to grow by 9.1% per annum.
Industry Valuation and Performance
Has the U.S. Beverage Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 18 Feb 2025 | US$685.5b | US$213.7b | US$28.9b | 23.3x | 23.7x | 3.2x |
| Thu, 16 Jan 2025 | US$663.9b | US$213.0b | US$28.3b | 21.5x | 23.5x | 3.1x |
| Sat, 14 Dec 2024 | US$719.3b | US$213.6b | US$28.3b | 24.8x | 25.5x | 3.4x |
| Mon, 11 Nov 2024 | US$721.3b | US$213.6b | US$28.2b | 25.8x | 25.5x | 3.4x |
| Wed, 09 Oct 2024 | US$750.7b | US$214.3b | US$28.9b | 26.2x | 26x | 3.5x |
| Fri, 06 Sep 2024 | US$783.6b | US$213.8b | US$30.8b | 23.5x | 25.5x | 3.7x |
| Sun, 04 Aug 2024 | US$774.7b | US$214.3b | US$30.7b | 23.9x | 25.2x | 3.6x |
| Tue, 02 Jul 2024 | US$731.2b | US$213.5b | US$29.8b | 24.8x | 24.6x | 3.4x |
| Thu, 30 May 2024 | US$742.2b | US$214.8b | US$29.8b | 24.9x | 24.9x | 3.5x |
| Sat, 27 Apr 2024 | US$750.5b | US$213.7b | US$29.5b | 24.5x | 25.5x | 3.5x |
| Mon, 25 Mar 2024 | US$750.8b | US$213.0b | US$29.1b | 25.5x | 25.8x | 3.5x |
| Wed, 21 Feb 2024 | US$738.1b | US$212.1b | US$28.6b | 27.1x | 25.8x | 3.5x |
| Fri, 19 Jan 2024 | US$739.5b | US$211.4b | US$27.1b | 28.9x | 27.3x | 3.5x |
| Sun, 17 Dec 2023 | US$728.0b | US$211.3b | US$27.1b | 28.4x | 26.9x | 3.4x |
| Tue, 14 Nov 2023 | US$718.2b | US$211.0b | US$27.1b | 29.2x | 26.5x | 3.4x |
| Thu, 12 Oct 2023 | US$683.8b | US$208.6b | US$25.8b | 27.7x | 26.5x | 3.3x |
| Sat, 09 Sep 2023 | US$749.5b | US$207.0b | US$23.6b | 29.9x | 31.8x | 3.6x |
| Mon, 07 Aug 2023 | US$770.2b | US$207.3b | US$23.6b | 33.5x | 32.7x | 3.7x |
| Wed, 05 Jul 2023 | US$764.9b | US$203.4b | US$20.8b | 33.5x | 36.8x | 3.8x |
| Fri, 02 Jun 2023 | US$754.7b | US$202.8b | US$21.0b | 33.2x | 36x | 3.7x |
| Sun, 30 Apr 2023 | US$776.2b | US$201.9b | US$21.0b | 34.8x | 36.9x | 3.8x |
| Tue, 28 Mar 2023 | US$741.9b | US$199.1b | US$23.2b | 34.7x | 32x | 3.7x |
| Thu, 23 Feb 2023 | US$730.8b | US$197.8b | US$23.6b | 30.2x | 30.9x | 3.7x |
| Sat, 21 Jan 2023 | US$722.6b | US$194.0b | US$25.4b | 29.2x | 28.4x | 3.7x |
| Mon, 19 Dec 2022 | US$753.7b | US$193.3b | US$25.4b | 32.1x | 29.7x | 3.9x |
| Wed, 16 Nov 2022 | US$743.3b | US$193.4b | US$25.4b | 28.4x | 29.2x | 3.8x |
| Fri, 14 Oct 2022 | US$706.8b | US$190.5b | US$25.7b | 28x | 27.5x | 3.7x |
| Sun, 11 Sep 2022 | US$745.9b | US$188.4b | US$26.4b | 32.5x | 28.3x | 4x |
| Tue, 09 Aug 2022 | US$747.1b | US$188.0b | US$26.3b | 34.4x | 28.4x | 4x |
| Thu, 07 Jul 2022 | US$738.6b | US$184.4b | US$28.5b | 32.4x | 25.9x | 4x |
| Sat, 04 Jun 2022 | US$724.3b | US$184.4b | US$27.2b | 31.3x | 26.6x | 3.9x |
| Mon, 02 May 2022 | US$739.5b | US$182.7b | US$27.1b | 30.1x | 27.3x | 4x |
| Wed, 30 Mar 2022 | US$714.5b | US$179.4b | US$23.9b | 31.7x | 29.9x | 4x |
| Fri, 25 Feb 2022 | US$698.6b | US$178.1b | US$23.3b | 30x | 30x | 3.9x |
Price to Earnings Ratio
30x
Current Industry PE
- Investors are pessimistic on the American Beverage industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 23.7x which is lower than its 3-year average PE of 28.2x.
- The 3-year average PS ratio of 3.7x is higher than the industry's current PS ratio of 3.2x.
Past Earnings Growth
- The earnings for companies in the Beverage industry have grown 9.8% per year over the last three years.
- Revenues for these companies have grown 6.3% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Staples industry?
| US Market | 1.50% | |
| Consumer Staples | 1.76% | |
| Beverage | 3.84% | |
| Brewers | 8.43% | |
| Soft Drinks | 4.18% | |
| Distillers and Wine Makers | -2.05% | |
Industry PE
- Investors are most optimistic about the Distillers and Wine Makers industry even though it's trading below its 3-year average PE ratio of 68.3x.
- Analysts are expecting annual earnings growth of 22.0%, which is higher than its past year's earnings decline of 23.7% per year.
- Investors are most pessimistic about the Brewers industry, which is trading below its 3-year average of 13.9x.
Forecasted Growth
- Analysts are most optimistic on the Distillers and Wine Makers industry, expecting annual earnings growth of 22% over the next 5 years.
- This is better than its past earnings decline of 24% per year.
- In contrast, the Brewers industry is expected to see its earnings grow by 2.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| KO Coca-Cola | US$68.87 | 6.7% +US$18.2b | 16.0% | PE27.9x | |
| MNST Monster Beverage | US$49.25 | 3.0% +US$1.4b | -10.5% | PE29.8x | |
| TAP Molson Coors Beverage | US$60.36 | 12.5% +US$1.2b | -2.9% | PE10.9x | |
| KOF Coca-Cola FEMSA. de | US$83.97 | 6.7% +US$1.1b | -16.7% | PE16.4x | |
| KDP Keurig Dr Pepper | US$31.65 | 2.4% +US$1.0b | 2.2% | PE18.8x |
