WBAG:PEPS

Stock Analysis Report

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Executive Summary

PepsiCo, Inc. operates as a food and beverage company worldwide. More Details


Snowflake Analysis

Established dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has PepsiCo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PEPS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

PEPS

0.02%

AT Beverage

-0.8%

AT Market


1 Year Return

-10.4%

PEPS

-27.7%

AT Beverage

-23.9%

AT Market

Return vs Industry: PEPS exceeded the Austrian Beverage industry which returned -27.7% over the past year.

Return vs Market: PEPS exceeded the Austrian Market which returned -23.9% over the past year.


Shareholder returns

PEPSIndustryMarket
7 Day-4.2%0.02%-0.8%
30 Day-4.0%1.7%0.4%
90 Day-3.6%-1.5%-1.6%
1 Year-7.7%-10.4%-26.4%-27.7%-23.1%-23.9%
3 Yearn/a-15.7%-20.6%-18.4%-24.5%
5 Yearn/a1.9%-8.2%30.2%13.8%

Price Volatility Vs. Market

How volatile is PepsiCo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is PepsiCo undervalued compared to its fair value and its price relative to the market?

26.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PEPS (€110.6) is trading above our estimate of fair value (€108.68)

Significantly Below Fair Value: PEPS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PEPS is poor value based on its PE Ratio (26.7x) compared to the XE Beverage industry average (21.5x).

PE vs Market: PEPS is poor value based on its PE Ratio (26.7x) compared to the Austrian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: PEPS is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: PEPS is overvalued based on its PB Ratio (14.6x) compared to the XE Beverage industry average (2.1x).


Next Steps

Future Growth

How is PepsiCo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEPS's forecast earnings growth (10.8% per year) is above the savings rate (0.5%).

Earnings vs Market: PEPS's earnings (10.8% per year) are forecast to grow slower than the Austrian market (26.4% per year).

High Growth Earnings: PEPS's earnings are forecast to grow, but not significantly.

Revenue vs Market: PEPS's revenue (5% per year) is forecast to grow faster than the Austrian market (3.9% per year).

High Growth Revenue: PEPS's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PEPS's Return on Equity is forecast to be very high in 3 years time (62.8%).


Next Steps

Past Performance

How has PepsiCo performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEPS has high quality earnings.

Growing Profit Margin: PEPS's current net profit margins (10.1%) are lower than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: PEPS's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: PEPS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PEPS had negative earnings growth (-46.5%) over the past year, making it difficult to compare to the Beverage industry average (-6.6%).


Return on Equity

High ROE: Whilst PEPS's Return on Equity (54.79%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is PepsiCo's financial position?


Financial Position Analysis

Short Term Liabilities: PEPS's short term assets ($23.2B) do not cover its short term liabilities ($23.8B).

Long Term Liabilities: PEPS's short term assets ($23.2B) do not cover its long term liabilities ($53.1B).


Debt to Equity History and Analysis

Debt Level: PEPS's debt to equity ratio (344.9%) is considered high.

Reducing Debt: PEPS's debt to equity ratio has increased from 191.9% to 344.9% over the past 5 years.

Debt Coverage: PEPS's debt is well covered by operating cash flow (22.4%).

Interest Coverage: PEPS's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

What is PepsiCo current dividend yield, its reliability and sustainability?

3.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PEPS's dividend (3.12%) is higher than the bottom 25% of dividend payers in the Austrian market (1.64%).

High Dividend: PEPS's dividend (3.12%) is low compared to the top 25% of dividend payers in the Austrian market (4.73%).


Stability and Growth of Payments

Stable Dividend: PEPS's dividends per share have been stable in the past 10 years.

Growing Dividend: PEPS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79%), PEPS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PEPS's dividends in 3 years are forecast to be covered by earnings (63.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Ramon Laguarta (56 yo)

1.92yrs

Tenure

US$16,870,817

Compensation

Mr. Ramon Luis Laguarta has been an Independent Director of Visa Inc. since November 20, 2019. Mr. Laguarta has been Chief Executive Officer and Director of PepsiCo, Inc. since October 3, 2018 and serves a ...


CEO Compensation Analysis

Compensation vs Market: Ramon's total compensation ($USD16.87M) is above average for companies of similar size in the Austrian market ($USD4.02M).

Compensation vs Earnings: Ramon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ramon Laguarta
Chairman & CEO1.92yrsUS$16.87m0.019%
$ 30.1m
Hugh Johnston
Vice Chairman10.5yrsUS$11.29m0.0076%
$ 11.8m
Ronald Adrianus Schellekens
Executive VP & Chief Human Resources Officer1.75yrsUS$4.18m0.0027%
$ 4.1m
Kirk Tanner
Chief Executive Officer of North America Beverages1.67yrsUS$6.84m0.0031%
$ 4.8m
Silviu Popovici
Chief Executive Officer of Europeno dataUS$6.13m0.0017%
$ 2.6m
Grace Puma
Executive Vice President of Global Operations2.92yrsno datano data
Rene Lammers
Executive VP & Chief Science Officer1.5yrsno datano data
Seth Cohen
Senior VP & Global Chief Information Officer0.83yrno datano data
David Yawman
Executive VP2.92yrsno data0.0046%
$ 7.2m
Jon Banner
Executive VP of Global Communications & President of PepsiCo Foundation6.33yrsno datano data
Jamie Caulfield
Senior Vice President of Investor Relationsno datano datano data
Pavan Bhatia
Chief Human Resources Officer for Asia Middle East & North Africa and Senior VP9.5yrsno datano data

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: PEPS's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ramon Laguarta
Chairman & CEO1.92yrsUS$16.87m0.019%
$ 30.1m
Ian Cook
Presiding Independent Directorno dataUS$351.67k0.00026%
$ 402.6k
Robert Pohlad
Independent Director5.5yrsUS$301.67k0.083%
$ 128.0m
Dina Dublon
Director0.67yrUS$341.67k0.00018%
$ 278.8k
Daniel Vasella
Independent Director18.58yrsUS$359.66k0.0010%
$ 1.6m
Alberto Weisser
Independent Director9yrsUS$341.67k0.000070%
$ 108.4k
Richard Fisher
Independent Director5.5yrsUS$311.67k0.000070%
$ 108.4k
Cesar Conde
Independent Director4.5yrsUS$301.67k0.000070%
$ 108.4k
Shona Brown
Independent Director11.5yrsUS$341.67k0.000070%
$ 108.4k
Michelle Gass
Independent Director1.5yrsUS$495.37k0.000070%
$ 108.4k
Darren Walker
Independent Director4yrsUS$301.67k0.000070%
$ 108.4k
David Page
Independent Director5.83yrsUS$311.67k0.000070%
$ 108.4k

5.5yrs

Average Tenure

64yo

Average Age

Experienced Board: PEPS's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PEPS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PepsiCo, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PepsiCo, Inc.
  • Ticker: PEPS
  • Exchange: WBAG
  • Founded: 1898
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$181.719b
  • Listing Market Cap: US$154.861b
  • Shares outstanding: 1.38b
  • Website: https://www.pepsico.com

Number of Employees


Location

  • PepsiCo, Inc.
  • 700 Anderson Hill Road
  • Purchase
  • New York
  • 10577
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
PEPSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
PEP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
PEPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PEPXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
PEPSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
0QOSLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
PEPENXTBR (Euronext Brussels)YesCommon StockBEUSDJan 1968
PEPSWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
PEPETLX (Eurotlx)YesCommon StockITEURJan 1968
PEPBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/2 ORD CP STK USD0.0166ARARSSep 2000
PEPB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 CAP USD0.016666BRBRLAug 2012

Biography

PepsiCo, Inc. operates as a food and beverage company worldwide. The company operates through seven segments: FLNA, QFNA, PBNA, LatAm, Europe, AMESA, and APAC. It offers branded dips, cheese-flavored snack ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 03:34
End of Day Share Price2020/09/21 00:00
Earnings2020/06/13
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.