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Market Cap

US$201.1b

Last Updated

2021/05/09 22:50 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


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: 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.


Market Performance


7 Day Return

1.0%

PEP

0.2%

US Beverage

0.2%

US Market


1 Year Return

8.4%

PEP

21.8%

US Beverage

49.9%

US Market

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.


Shareholder returns

PEPIndustryMarket
7 Day1.0%0.2%0.2%
30 Day2.1%2.3%1.5%
90 Day3.7%5.7%3.3%
1 Year11.7%8.4%25.0%21.8%52.4%49.9%
3 Year63.7%49.4%48.5%37.3%63.7%53.4%
5 Year62.0%39.7%52.7%33.6%130.6%104.9%

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

Valuation

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

18.3%

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).


Future Growth

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

6.6%

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%).


Past Performance

How has PepsiCo performed over the past 5 years?

8.5%

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.


Financial Health

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).


Balance Sheet


Dividend

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

2.95%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 10 2021Ex Dividend DateJun 03 2021Dividend Pay DateJun 30 202127 days from Ex DividendBuy in the next 24 days to receive the upcoming dividend

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).


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)

2.58yrs

Tenure

US$21,486,982

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 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.


Leadership Team

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


Board Members

Experienced Board: PEP's board of directors are considered experienced (6.2 years average tenure).


Ownership

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

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: 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


Location

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

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 22:50
End of Day Share Price2021/05/07 00:00
Earnings2021/03/20
Annual Earnings2020/12/26


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.