PepsiCo, Inc. operates as a food and beverage company worldwide. More Details
Established dividend payer with mediocre balance sheet.
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: PEP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: PEP's weekly volatility (2%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: PEP underperformed the US Beverage industry which returned 21.8% over the past year.
Return vs Market: PEP underperformed the US Market which returned 49.9% over the past year.
Long-Term 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
1 week ago | Simply Wall StPepsiCo, Inc.'s (NASDAQ:PEP) CEO Compensation Is Looking A Bit Stretched At The Moment
3 weeks ago | Simply Wall StPepsiCo, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
1 month ago | Simply Wall StEstimating The Fair Value Of PepsiCo, Inc. (NASDAQ:PEP)
Is PepsiCo undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PEP ($145.56) is trading below our estimate of fair value ($178.25)
Significantly Below Fair Value: PEP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PEP is good value based on its PE Ratio (26.8x) compared to the US Beverage industry average (32.7x).
PE vs Market: PEP is poor value based on its PE Ratio (26.8x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: PEP is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: PEP is overvalued based on its PB Ratio (14.4x) compared to the US Beverage industry average (7.2x).
How is PepsiCo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PEP's forecast earnings growth (6.6% per year) is above the savings rate (2%).
Earnings vs Market: PEP's earnings (6.6% per year) are forecast to grow slower than the US market (15.1% per year).
High Growth Earnings: PEP's earnings are forecast to grow, but not significantly.
Revenue vs Market: PEP's revenue (3.9% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: PEP's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PEP's Return on Equity is forecast to be very high in 3 years time (53.5%).
How has PepsiCo performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PEP has high quality earnings.
Growing Profit Margin: PEP's current net profit margins (10.5%) are lower than last year (10.6%).
Past Earnings Growth Analysis
Earnings Trend: PEP's earnings have grown by 8.5% per year over the past 5 years.
Accelerating Growth: PEP's earnings growth over the past year (3.5%) is below its 5-year average (8.5% per year).
Earnings vs Industry: PEP earnings growth over the past year (3.5%) underperformed the Beverage industry 26.6%.
Return on Equity
High ROE: Whilst PEP's Return on Equity (53.7%) is outstanding, this metric is skewed due to their high level of debt.
How is PepsiCo's financial position?
Financial Position Analysis
Short Term Liabilities: PEP's short term assets ($21.2B) do not cover its short term liabilities ($22.7B).
Long Term Liabilities: PEP's short term assets ($21.2B) do not cover its long term liabilities ($54.5B).
Debt to Equity History and Analysis
Debt Level: PEP's debt to equity ratio (298.7%) is considered high.
Reducing Debt: PEP's debt to equity ratio has reduced from 311.8% to 298.7% over the past 5 years.
Debt Coverage: PEP's debt is well covered by operating cash flow (25.4%).
Interest Coverage: PEP's interest payments on its debt are well covered by EBIT (10x coverage).
What is PepsiCo current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PEP's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: PEP's dividend (2.95%) is low compared to the top 25% of dividend payers in the US market (3.4%).
Stability and Growth of Payments
Stable Dividend: PEP's dividends per share have been stable in the past 10 years.
Growing Dividend: PEP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (75.4%), PEP's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PEP's dividends in 3 years are forecast to be covered by earnings (66.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ramon Laguarta (56 yo)
Mr. Ramon Luis Laguarta has been an Independent Director of Visa Inc. since November 20, 2019. Mr. Laguarta has been Chief Executive Officer and Director of PepsiCo, Inc. since October 3, 2018 and its Chai...
CEO Compensation Analysis
Compensation vs Market: Ramon's total compensation ($USD21.49M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Ramon's compensation has increased by more than 20% in the past year.
Experienced Management: PEP's management team is considered experienced (2.4 years average tenure).
Experienced Board: PEP's board of directors are considered experienced (6.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PEP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
PepsiCo, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: PepsiCo, Inc.
- Ticker: PEP
- Exchange: NasdaqGS
- Founded: 1898
- Industry: Soft Drinks
- Sector: Food, Beverage & Tobacco
- Market Cap: US$201.110b
- Shares outstanding: 1.38b
- Website: https://www.pepsico.com
Number of Employees
- PepsiCo, Inc.
- 700 Anderson Hill Road
- New York
- United States
PepsiCo, Inc. operates as a food and beverage company worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin Ame...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/09 22:50|
|End of Day Share Price||2021/05/07 00:00|
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.