NasdaqGS:PEP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record established dividend payer.


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


Market Performance


7 Day Return

-1.0%

PEP

0.3%

US Beverage

1.0%

US Market


1 Year Return

24.4%

PEP

15.8%

US Beverage

8.0%

US Market

Return vs Industry: PEP exceeded the US Beverage industry which returned 15.8% over the past year.

Return vs Market: PEP exceeded the US Market which returned 8% over the past year.


Shareholder returns

PEPIndustryMarket
7 Day-1.0%0.3%1.0%
30 Day1.0%0.04%-0.07%
90 Day4.1%0.7%-1.0%
1 Year28.2%24.4%18.8%15.8%10.4%8.0%
3 Year38.8%26.8%31.8%21.6%46.2%36.7%
5 Year66.6%43.9%58.4%38.4%64.3%46.2%

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

Valuation

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

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PEP ($136.12) is trading below our estimate of fair value ($142.59)

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 (15.4x) compared to the Beverage industry average (29x).

PE vs Market: PEP is good value based on its PE Ratio (15.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: PEP is poor value based on its PEG Ratio (9.4x)


Price to Book Ratio

PB vs Industry: PEP is overvalued based on its PB Ratio (13.4x) compared to the US Beverage industry average (4.4x).


Next Steps

Future Growth

How is PepsiCo forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEP's forecast earnings growth (1.6% per year) is below the savings rate (2.7%).

Earnings vs Market: PEP's earnings (1.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: PEP's revenue (4.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PEP's revenue (4.2% 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 (60.5%).


Next Steps

Past Performance

How has PepsiCo performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PEP's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: PEP's earnings growth over the past year (150.9%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: PEP earnings growth over the past year (150.9%) exceeded the Beverage industry -1.9%.


Return on Equity

High ROE: Whilst PEP's Return on Equity (87.47%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: PEP has a higher Return on Assets than the Beverage industry average last year.


Return on Capital Employed

ROCE Improving: PEP has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is PepsiCo's financial position?


Financial Position Analysis

Short Term Liabilities: PEP's short term assets ($19.2B) do not cover its short term liabilities ($20.1B)

Long Term Liabilities: PEP's short term assets (19.2B) do not cover its long term liabilities (43.1B)


Debt to Equity History and Analysis

Debt Level: PEP's debt to equity ratio (228.9%) is considered high

Reducing Debt: PEP's debt to equity ratio has increased from 141.5% to 228.9% over the past 5 years.

Debt Coverage: PEP's debt is well covered by operating cash flow (29.9%).

Interest Coverage: PEP's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet

Inventory Level: PEP has a high level of physical assets or inventory.

Debt Coverage by Assets: PEP's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PEP's dividend (2.81%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PEP's dividend (2.81%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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: With its reasonably low payout ratio (42.6%), PEP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PEP's dividends in 3 years are forecast to be covered by earnings (63.7% payout ratio).


Next Steps

Management

What is the CEO of PepsiCo's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Ramon Laguarta (55yo)

1yrs

Tenure

US$10,827,396

Compensation

Mr. Ramon Luis Laguarta has been Chief Executive Officer and Director of PepsiCo, Inc. since October 3, 2018 and serves Chairman since February 1, 2019 and served as its President since September 1, 2017 u ...


CEO Compensation Analysis

Compensation vs. Market: Ramon has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Ramon's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: PEP's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

65yo

Average Age

Experienced Board: PEP's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$822,10006 Aug 19
Kirk Tanner
EntityIndividual
Shares6,415
Max PriceUS$128.15
SellUS$324,17012 Jul 19
Steven Williams
EntityIndividual
Shares2,420
Max PriceUS$133.95
SellUS$982,73124 Apr 19
Marie Gallagher
EntityIndividual
Shares7,800
Max PriceUS$125.99
SellUS$1,524,61908 Mar 19
Vivek Sankaran
EntityIndividual
Shares13,000
Max PriceUS$117.28
SellUS$2,256,81102 Nov 18
Mike Spanos
EntityIndividual
Shares20,074
Max PriceUS$112.42
SellUS$5,198,49224 Oct 18
Mehmood Khan
EntityIndividual
Shares47,181
Max PriceUS$110.46

Ownership Breakdown


Management Team

  • Jamie Caulfield

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Dave Yawman (50yo)

    Executive VP of Government Affairs

    • Tenure: 2yrs
  • Silviu Popovici (51yo)

    Chief Executive Officer of Europe

    • Tenure: 0yrs
    • Compensation: US$6.15m
  • Hugh Johnston (57yo)

    Vice Chairman

    • Tenure: 9.6yrs
    • Compensation: US$9.14m
  • Ronald Adrianus Schellekens (54yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Luis Montoya

    President of Latin America Beverages

    • Tenure: 12.8yrs
  • Ramon Laguarta (55yo)

    Chairman & CEO

    • Tenure: 1yrs
    • Compensation: US$10.83m
  • Jon Banner

    Executive VP of Global Communications & President of PepsiCo Foundation

    • Tenure: 5.4yrs
  • Grace Puma (56yo)

    Executive Vice President of Global Operations

    • Tenure: 2yrs
  • Rene Lammers

    Executive VP & Chief Science Officer

    • Tenure: 0.6yrs

Board Members

  • Ian Cook (66yo)

    Presiding Director

    • Tenure: 0yrs
    • Compensation: US$340.00k
  • Bill Johnson (70yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$290.00k
  • Robert Pohlad (64yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$290.00k
  • Dina Dublon (66yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$330.00k
  • Dan Vasella (66yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$330.00k
  • Alberto Weisser (64yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$330.00k
  • Richard Fisher (70yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$300.00k
  • Shona Brown (53yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$330.00k
  • Ramon Laguarta (55yo)

    Chairman & CEO

    • Tenure: 1yrs
    • Compensation: US$10.83m
  • David Page (62yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$310.00k

Company Information

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


Key Information

  • Name: PepsiCo, Inc.
  • Ticker: PEP
  • Exchange: NasdaqGS
  • Founded: 1898
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$189.811b
  • Shares outstanding: 1.39b
  • 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
PEPXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
PEPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
PEP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
PEPENXTBR (Euronext Brussels)YesCommon StockBEUSDJan 1968
PEPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PEPSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0QOSLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
PEPSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
PEPSWBAG (Wiener Boerse AG)YesCommon StockATEURJan 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’s Frito-Lay North America segment offers branded dips; Cheetos cheese-flavored snacks; and Doritos tortilla, Fritos corn, Lay’s  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:40
End of Day Share Price2019/10/21 00:00
Earnings2019/09/07
Annual Earnings2018/12/29


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.