| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 4/6 |
PEP Stock Overview
PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide.
PepsiCo, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$180.32 |
| 52 Week High | US$180.70 |
| 52 Week Low | US$149.48 |
| Beta | 0.56 |
| 1 Month Change | 5.38% |
| 3 Month Change | 10.19% |
| 1 Year Change | 14.20% |
| 3 Year Change | 36.54% |
| 5 Year Change | 52.92% |
| Change since IPO | 1,583.92% |
Recent News & Updates
PepsiCo, Inc.'s (NASDAQ:PEP) Intrinsic Value Is Potentially 35% Above Its Share Price
In this article we are going to estimate the intrinsic value of PepsiCo, Inc. ( NASDAQ:PEP ) by projecting its future...
Is PepsiCo Stock A Buy After Earnings? Dividend King Yields 2.7%
PepsiCo has delivered consistent financial results and consistent shareholder returns for decades. The company has increased its dividend for 50 consecutive years. Its consistency, and perhaps more importantly, the perception of consistency, has helped the stock avoid the intense volatility seen in the tech sectors. I am skeptical of the share repurchase program considering the rich valuation of the stock. I discuss whether the stock is a buy, sell, or hold at current prices considering the current market environment. PepsiCo (PEP) is one of those stocks where investors have grown accustomed to its predictability. The company's impressive lineup of household brands lends itself to consistent pricing power and margin expansion. While the company is not growing nearly as fast as hyper-growth tech stocks, its consistency, and perhaps more importantly the perception of consistency, has helped the stock avoid the intense volatility seen in the tech sectors. The stock is yielding 2.7%, placing it at the low end of the past decade. The stock may only be suitable for those fearful of further market weakness and even then, the rich valuation might not offer guaranteed protection. Pepsi Stock Price PEP is not a sexy stock, but its returns are looking impressive especially to tech investors. Data by YCharts With the stock trading at around $170 per share, the stock is near all-time highs - seemingly oblivious to the turmoil occurring in the tech sectors. What Were Pepsi's Expected Earnings? When PEP reported earnings on July 12th, the company was expected to show minimal revenue growth and stagnating earnings. Did PepsiCo Beat Earnings? Its actual results were more upbeat, with a sizable revenue beat. Seeking Alpha PEP Stock Key Metrics In the quarter, PEP saw revenue grow 5.2%. GAAP earnings per share declined by 39% while "core" earnings per share grew by 10%. 2022 Q2 Press Release What drove the discrepancy? We can see below that the company's European business has seen a sizable hit in operating profits whereas the PepsiCo Beverages North America business has seen an outsized gain in operating profits. 2022 Q2 Press Release Yet both of those are excluded from core EPS. PEP had recorded a non-cash gain on its Juice transaction as well as non-cash impairment charges due to the Russia-Ukraine conflict. 2022 Q2 Press Release After adjusting for those two non-cash line items, core EPS grew by a more predictable 10%. PEP ended the quarter with $5.4 billion of cash versus $39 billion in debt. What To Expect After Earnings PEP has guided for full-year organic revenue to increase by 10% (prior guidance was 8%) and for its core constant currency earnings per share to increase by 8%. That latter metric may have one too many adjustments - without adjusting for constant currency, core EPS is expected to grow 6% to $6.63. The company expects to return $7.7 billion to shareholders through $6.2 billion of dividends and $1.5 billion of share repurchases. Is PEP A Good Investment Long Term? Over the decades, PEP has built an iconic lineup of household brands. Consumer Analyst Group of New York Conference The company has been able to deliver consistent organic revenue growth which has led to even faster earnings growth. Consumer Analyst Group of New York Conference PEP has grown its dividend for 50 consecutive years, making the company a "Dividend King." Consumer Analyst Group of New York Conference I do question the company's decision to invest so much on share repurchases. The stock has historically traded at rich multiples and there has not been sizable growth over the past decade. Data by YCharts While PEP certainly has the free cash flow available for share repurchases, investors should instead consider that the company is not willing or simply does not have the ability to reinvest those cash flows at higher rates of return. Over the long term, PEP aims to grow revenues by up to 6% annually which should lead to high single digit growth in EPS. Combined with the 2.7% dividend yield, that might lead to something close to double-digit annual returns. Such an outlook is not hard to believe considering it can be achieved through a mix of volume and pricing growth.
Shareholder Returns
| PEP | US Beverage | US Market | |
|---|---|---|---|
| 7D | 3.3% | 3.2% | 4.5% |
| 1Y | 14.2% | 12.2% | -8.9% |
Return vs Industry: PEP exceeded the US Beverage industry which returned 10.9% over the past year.
Return vs Market: PEP exceeded the US Market which returned -9.6% over the past year.
Price Volatility
| PEP volatility | |
|---|---|
| PEP Average Weekly Movement | 3.0% |
| Beverage Industry Average Movement | 6.6% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: PEP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: PEP's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1898 | 309,000 | Ramon Laguarta | https://www.pepsico.com |
PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, simply granola, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products.
PepsiCo, Inc. Fundamentals Summary
| PEP fundamental statistics | |
|---|---|
| Market Cap | US$248.82b |
| Earnings (TTM) | US$9.24b |
| Revenue (TTM) | US$81.86b |
26.9x
P/E Ratio3.0x
P/S RatioIs PEP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PEP income statement (TTM) | |
|---|---|
| Revenue | US$81.86b |
| Cost of Revenue | US$38.20b |
| Gross Profit | US$43.66b |
| Other Expenses | US$34.43b |
| Earnings | US$9.24b |
Last Reported Earnings
Jun 11, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.69 |
| Gross Margin | 53.33% |
| Net Profit Margin | 11.28% |
| Debt/Equity Ratio | 210.3% |
How did PEP perform over the long term?
See historical performance and comparisonDividends
2.6%
Current Dividend Yield66%
Payout RatioDoes PEP pay a reliable dividends?
See PEP dividend history and benchmarks| PepsiCo dividend dates | |
|---|---|
| Ex Dividend Date | Sep 01 2022 |
| Dividend Pay Date | Sep 30 2022 |
| Days until Ex dividend | 15 days |
| Days until Dividend pay date | 44 days |
Does PEP pay a reliable dividends?
See PEP dividend history and benchmarks