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PepsiCo

Nasdaq:PEP
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PEP
Nasdaq
$178B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

PepsiCo, Inc. operates as a food and beverage company worldwide. The last earnings update was 2 days ago. More info.


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PEP Share Price and Events
7 Day Returns
4%
NasdaqGS:PEP
1.7%
US Beverage
0.2%
US Market
1 Year Returns
24%
NasdaqGS:PEP
5%
US Beverage
6.3%
US Market
PEP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PepsiCo (PEP) 4% 7.4% 15.5% 24% 24.6% 49.1%
US Beverage 1.7% 4.3% 5.2% 5% 6.7% 12.2%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • PEP outperformed the Beverage industry which returned 5% over the past year.
  • PEP outperformed the Market in United States of America which returned 6.3% over the past year.
Price Volatility
PEP
Industry
5yr Volatility vs Market

PEP Value

 Is PepsiCo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PepsiCo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PepsiCo.

NasdaqGS:PEP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PEP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.606 (1 + (1- 21%) (17.82%))
0.793
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:PEP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PepsiCo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:PEP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 5,154.41 Analyst x9 4,794.89
2020 6,920.63 Analyst x9 5,988.87
2021 7,555.41 Analyst x7 6,082.15
2022 9,386.00 Analyst x1 7,028.76
2023 9,941.00 Analyst x1 6,925.13
2024 10,422.34 Est @ 4.84% 6,754.03
2025 10,860.95 Est @ 4.21% 6,547.34
2026 11,269.85 Est @ 3.76% 6,319.97
2027 11,659.15 Est @ 3.45% 6,082.24
2028 12,036.57 Est @ 3.24% 5,841.16
Present value of next 10 years cash flows $62,364.55
NasdaqGS:PEP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $12,036.57 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$259,336.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $259,336.56 ÷ (1 + 7.5%)10
$125,851.94
NasdaqGS:PEP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $62,364.55 + $125,851.94
$188,216.49
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $188,216.49 / 1,401.82
$134.27
NasdaqGS:PEP Discount to Share Price
Calculation Result
Value per share (USD) From above. $134.27
Current discount Discount to share price of $127.09
= -1 x ($127.09 - $134.27) / $134.27
5.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PepsiCo is available for.
Intrinsic value
5%
Share price is $127.09 vs Future cash flow value of $134.27
Current Discount Checks
For PepsiCo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PepsiCo's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • PepsiCo's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PepsiCo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PepsiCo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PEP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-23) in USD $8.92
NasdaqGS:PEP Share Price ** NasdaqGS (2019-04-18) in USD $127.09
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 30.61x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PepsiCo.

NasdaqGS:PEP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PEP Share Price ÷ EPS (both in USD)

= 127.09 ÷ 8.92

14.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PepsiCo is good value based on earnings compared to the US Beverage industry average.
  • PepsiCo is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does PepsiCo's expected growth come at a high price?
Raw Data
NasdaqGS:PEP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
-1.5%per year
United States of America Beverage Industry PEG Ratio Median Figure of 12 Publicly-Listed Beverage Companies 3.1x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:PEP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.25x ÷ -1.5%

-9.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PepsiCo earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on PepsiCo's assets?
Raw Data
NasdaqGS:PEP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-23) in USD $10.12
NasdaqGS:PEP Share Price * NasdaqGS (2019-04-18) in USD $127.09
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 6.99x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NasdaqGS:PEP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PEP Share Price ÷ Book Value per Share (both in USD)

= 127.09 ÷ 10.12

12.56x

* Primary Listing of PepsiCo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PepsiCo is overvalued based on assets compared to the US Beverage industry average.
X
Value checks
We assess PepsiCo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. PepsiCo has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PEP Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PepsiCo expected to grow at an attractive rate?
  • PepsiCo's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PepsiCo's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • PepsiCo's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PEP Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PEP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts -1.5%
NasdaqGS:PEP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 3.9%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 7.5%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PEP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PEP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 78,122 2
2022-12-31 74,869 2
2021-12-31 71,986 11,243 8,785 13
2020-12-31 69,144 10,658 8,217 21
2019-12-31 66,543 9,337 7,569 20
NasdaqGS:PEP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-23 64,983 10,379 12,585
2018-12-29 64,661 9,415 12,513
2018-09-08 64,663 8,639 4,948
2018-06-16 64,418 8,830 4,593
2018-03-24 64,038 8,914 4,878
2017-12-30 63,525 10,030 4,853
2017-09-09 63,514 9,936 6,962
2017-06-17 63,301 9,817 6,810
2017-03-25 62,986 10,175 6,709
2016-12-31 62,799 10,663 6,323
2016-09-03 61,869 10,629 6,641
2016-06-11 62,173 10,926 5,181

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PepsiCo's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • PepsiCo's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PEP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from PepsiCo Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PEP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 6.39 6.43 6.33 3.00
2020-12-31 5.85 5.98 5.54 7.00
2019-12-31 5.33 5.53 4.69 7.00
NasdaqGS:PEP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-23 8.92
2018-12-29 8.84
2018-09-08 3.49
2018-06-16 3.23
2018-03-24 3.43
2017-12-30 3.41
2017-09-09 4.88
2017-06-17 4.76
2017-03-25 4.68
2016-12-31 4.39
2016-09-03 4.60
2016-06-11 3.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PepsiCo is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess PepsiCo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PepsiCo has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PEP Past Performance

  How has PepsiCo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PepsiCo's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PepsiCo's year on year earnings growth rate has been positive over the past 5 years.
  • PepsiCo's 1-year earnings growth exceeds its 5-year average (158% vs 6.1%)
  • PepsiCo's earnings growth has exceeded the US Beverage industry average in the past year (158% vs 4.5%).
Earnings and Revenue History
PepsiCo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PepsiCo Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PEP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-23 64,983.00 12,585.00 24,126.00 680.00
2018-12-29 64,661.00 12,513.00 23,981.00 680.00
2018-09-08 64,663.00 4,948.00 23,880.00 737.00
2018-06-16 64,418.00 4,593.00 23,744.00 737.00
2018-03-24 64,038.00 4,878.00 23,732.00 737.00
2017-12-30 63,525.00 4,853.00 23,530.00 737.00
2017-09-09 63,514.00 6,962.00 23,279.00 760.00
2017-06-17 63,301.00 6,810.00 23,133.00 760.00
2017-03-25 62,986.00 6,709.00 23,103.00 760.00
2016-12-31 62,799.00 6,323.00 23,584.00 760.00
2016-09-03 61,869.00 6,641.00 24,143.00
2016-06-11 62,173.00 5,181.00 24,208.00
2016-03-19 62,701.00 5,156.00 24,401.00
2015-12-26 63,056.00 5,446.00 23,562.00 754.00
2015-09-05 64,419.00 5,037.00 24,834.00
2015-06-13 65,306.00 6,511.00 25,178.00
2015-03-21 66,277.00 6,508.00 25,556.00
2014-12-27 66,683.00 6,503.00 25,287.00
2014-09-06 66,853.00 6,935.00 25,335.00
2014-06-14 66,544.00 6,843.00 25,191.00
2014-03-22 66,457.00 6,874.00 25,080.00
2013-12-28 66,415.00 6,732.00 25,184.00
2013-09-07 66,251.00 6,652.00 25,138.00
2013-06-15 65,994.00 6,640.00 24,903.00
2013-03-23 65,645.00 6,118.00 24,827.00
2012-12-29 65,492.00 6,171.00 24,530.00
2012-09-08 65,696.00 5,925.00 24,195.00
2012-06-16 66,626.00 6,023.00 24,429.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst PepsiCo made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • PepsiCo used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.
  • PepsiCo has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PepsiCo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PepsiCo has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PEP Health

 How is PepsiCo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PepsiCo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PepsiCo's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • PepsiCo's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of PepsiCo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PepsiCo Company Filings, last reported 3 weeks ago.

NasdaqGS:PEP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-23 14,296.00 31,749.00 5,361.00
2018-12-29 14,602.00 32,321.00 8,993.00
2018-09-08 10,389.00 35,117.00 13,898.00
2018-06-16 10,221.00 40,593.00 18,129.00
2018-03-24 10,985.00 43,531.00 20,610.00
2017-12-30 10,981.00 39,281.00 19,510.00
2017-09-09 13,411.00 39,169.00 18,278.00
2017-06-17 12,530.00 39,484.00 17,160.00
2017-03-25 11,683.00 39,128.00 15,989.00
2016-12-31 11,199.00 36,945.00 16,125.00
2016-09-03 12,718.00 35,606.00 14,780.00
2016-06-11 12,376.00 35,621.00 13,379.00
2016-03-19 11,231.00 35,086.00 12,144.00
2015-12-26 12,030.00 33,663.00 12,009.00
2015-09-05 13,579.00 31,843.00 10,679.00
2015-06-13 16,464.00 31,458.00 9,579.00
2015-03-21 15,989.00 30,365.00 8,495.00
2014-12-27 17,548.00 28,897.00 8,726.00
2014-09-06 23,187.00 32,742.00 12,906.00
2014-06-14 23,600.00 32,848.00 11,299.00
2014-03-22 22,893.00 32,072.00 10,086.00
2013-12-28 24,389.00 29,639.00 9,678.00
2013-09-07 22,402.00 29,549.00 9,559.00
2013-06-15 22,765.00 29,510.00 8,139.00
2013-03-23 22,464.00 29,400.00 7,011.00
2012-12-29 22,399.00 28,359.00 6,619.00
2012-09-08 21,584.00 27,943.00 5,711.00
2012-06-16 20,595.00 28,332.00 4,193.00
  • PepsiCo's level of debt (222.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (140.1% vs 222.1% today).
  • Debt is well covered by operating cash flow (32.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9x coverage).
X
Financial health checks
We assess PepsiCo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PepsiCo has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PEP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.01%
Current annual income from PepsiCo dividends. Estimated to be 3.27% next year.
If you bought $2,000 of PepsiCo shares you are expected to receive $60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PepsiCo's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • PepsiCo's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PEP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PEP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 4.62 1.00
2022-12-31 4.40 1.00
2021-12-31 4.49 12.00
2020-12-31 4.14 17.00
2019-12-31 3.89 17.00
NasdaqGS:PEP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-13 3.820 3.216
2018-11-15 3.710 3.297
2018-07-13 3.710 3.294
2018-05-01 3.710 3.601
2018-02-06 3.220 2.964
2017-11-17 3.220 2.727
2017-07-14 3.220 2.825
2017-05-02 3.220 2.790
2017-02-02 3.010 2.726
2016-11-17 3.010 2.913
2016-07-14 3.010 2.812
2016-05-03 3.010 2.897
2016-02-04 2.810 2.780
2015-11-19 2.810 2.848
2015-07-16 2.810 2.905
2015-05-05 2.810 2.944
2015-02-05 2.620 2.715
2014-11-20 2.620 2.710
2014-07-18 2.620 2.818
2014-05-06 2.620 2.975
2014-02-06 2.270 2.761
2013-11-21 2.270 2.758
2013-07-19 2.270 2.755
2013-04-30 2.270 2.753
2013-02-07 2.150 2.769
2012-11-28 2.150 3.039
2012-07-20 2.150 3.038
2012-02-09 2.150 3.229
2012-02-03 2.060 3.113
2011-11-17 2.060 3.164
2011-07-15 2.060 3.279
2011-05-04 2.060 2.955
2011-02-04 1.920 2.954
2010-11-12 1.920 2.941
2010-07-16 1.920 2.932
2010-03-15 1.920 2.976
2010-02-09 1.800 2.861
2009-11-13 1.800 2.931
2009-10-08 1.800 2.936
2009-05-05 1.800 3.246
2009-04-20 1.700 3.449

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of PepsiCo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess PepsiCo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PepsiCo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PepsiCo has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PEP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ramon Laguarta
COMPENSATION $10,827,396
AGE 54
TENURE AS CEO 0.5 years
CEO Bio

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 until October 03, 2018. Mr. Laguarta is overseeing global operations, corporate strategy, public policy and government affairs. He served as the Chief Executive Officer of Europe Sub-Saharan Africa at Pepsico, Inc. from July 8, 2015 to September 1, 2017. Mr. Laguarta served as Chief Executive Officer of Europe at Pepsico, Inc. from January 2015 to July 8, 2015. He served as the President of Developing & Emerging Markets-Europe at Pepsico, Inc., from September 2012 to January 2015. Mr. Laguarta oversaw Eastern and South Eastern Europe. He served as the President of Eastern Europe Region at PepsiCo. from November 2008 to 2012. From 2006 to 2008, he served as Commercial Vice President for PepsiCo Europe. From 2002 to 2006, he was General Manager for Iberia Snacks and Juices. From 1999 to 2001, he served as General Manager for Greece Snacks from 1999 to 2001 and Marketing Vice President for Spain Snacks. He joined PepsiCo in January 1996 as a Marketing Vice President for Spain Snacks. Previously, he worked for Chupa Chups S.A., a Spanish leading confectionary company, where he served several international assignments in Europe and the U.S. He serves as the Chairman of Wimm-Bill-Dann Foods OJSC and has been its Director since April 8, 2011. He holds an MBA from ESADE Business School in Spain and a M&M (Master in International Management) from Thunderbird in the U.S.

CEO Compensation
  • Ramon's compensation has been consistent with company performance over the past year.
  • Ramon's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PepsiCo management team in years:

1.5
Average Tenure
54
Average Age
  • The average tenure for the PepsiCo management team is less than 2 years, this suggests a new team.
Management Team

Ramon Laguarta

TITLE
Chairman & CEO
COMPENSATION
$11M
AGE
54
TENURE
0.5 yrs

Hugh Johnston

TITLE
Vice Chairman
COMPENSATION
$9M
AGE
56
TENURE
9.1 yrs

Laxman Narasimhan

TITLE
Global Chief Commercial Officer
COMPENSATION
$7M
AGE
50
TENURE
0.1 yrs

Silviu Popovici

TITLE
Chief Executive Officer of Europe Sub-Saharan Africa
COMPENSATION
$6M
AGE
50
TENURE
0.2 yrs

Grace Puma

TITLE
Executive Vice President of Global Operations
AGE
55
TENURE
1.5 yrs

Jody Davids

TITLE
Senior VP & Chief Information Officer
AGE
62
TENURE
3 yrs

Rene Lammers

TITLE
Chief Science Officer
TENURE
0.1 yrs

Jamie Caulfield

TITLE
Senior Vice President of Investor Relations
TENURE
8.4 yrs

Dave Yawman

TITLE
Executive VP of Government Affairs
AGE
49
TENURE
1.5 yrs

Jon Banner

TITLE
Executive Vice President of Global Communications
TENURE
4.9 yrs
Board of Directors Tenure

Average tenure and age of the PepsiCo board of directors in years:

6.6
Average Tenure
64
Average Age
  • The tenure for the PepsiCo board of directors is about average.
Board of Directors

Ramon Laguarta

TITLE
Chairman & CEO
COMPENSATION
$11M
AGE
54
TENURE
0.2 yrs

Dan Vasella

TITLE
Independent Director
COMPENSATION
$330K
AGE
65
TENURE
17.2 yrs

Dina Dublon

TITLE
Independent Director
COMPENSATION
$330K
AGE
65
TENURE
13.8 yrs

Shona Brown

TITLE
Independent Director
COMPENSATION
$330K
AGE
52
TENURE
10.1 yrs

Alberto Weisser

TITLE
Independent Director
COMPENSATION
$330K
AGE
63
TENURE
7.6 yrs

Ian Cook

TITLE
Presiding Director
COMPENSATION
$340K
AGE
65

Robert Pohlad

TITLE
Independent Director
COMPENSATION
$290K
AGE
63
TENURE
4.1 yrs

George Buckley

TITLE
Independent Director
COMPENSATION
$290K
AGE
71
TENURE
6.6 yrs

David Page

TITLE
Independent Director
COMPENSATION
$310K
AGE
61
TENURE
4.4 yrs

Bill Johnson

TITLE
Independent Director
COMPENSATION
$290K
AGE
69
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • PepsiCo insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Sell Vivek Sankaran Individual 07. Mar 19 07. Mar 19 -13,000 $117.28 $-1,524,619
02. Nov 18 Sell Mike Spanos Individual 31. Oct 18 31. Oct 18 -20,074 $112.42 $-2,256,811
24. Oct 18 Sell Mehmood Khan Individual 22. Oct 18 23. Oct 18 -47,181 $110.46 $-5,198,492
05. Oct 18 Sell Laxman Narasimhan Individual 04. Oct 18 04. Oct 18 -5,500 $106.79 $-587,364
X
Management checks
We assess PepsiCo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PepsiCo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PEP News

Simply Wall St News

Should You Be Impressed By PepsiCo, Inc.'s (NASDAQ:PEP) ROE?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.48. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

PepsiCo Inc (NASDAQ:PEP): Why Return On Capital Employed Is Important

To understand PepsiCo’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit … PepsiCo's Return On Capital Employed

Simply Wall St -

How Did PepsiCo Inc's (NASDAQ:PEP) 45.4% ROE Fare Against The Industry?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between company’s fundamentals and stock market performance. … This can be measured by looking at the company’s financial leverage.

Simply Wall St -

Who Are The Major Shareholders In PepsiCo Inc (NASDAQ:PEP)?

Today, I will be analyzing PepsiCo Inc’s (NASDAQ:PEP) recent ownership structure, an important but not-so-popular subject among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … NasdaqGS:PEP Ownership Summary July 26th 18

Simply Wall St -

Is PepsiCo Inc (NASDAQ:PEP) A Great Dividend Stock?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Over the past 10 years, PepsiCo Inc (NASDAQ:PEP) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … Let's dig deeper into whether PepsiCo should have a place in your portfolio.

Simply Wall St -

What does PepsiCo Inc's (NASDAQ:PEP) Balance Sheet Tell Us About Its Future?

the key to their continued success lies in its financial health. … I will provide an overview of PepsiCo’s financial liquidity and leverage to give you an idea of PepsiCo’s position to take advantage of potential acquisitions or comfortably endure future downturns … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Is PepsiCo Inc (NASDAQ:PEP) A Financially Sound Company?

PepsiCo Inc (NASDAQ:PEP), a large-cap worth US$152.57b, comes to mind for investors seeking a strong and reliable stock investment. … Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

How Did PepsiCo Inc's (NASDAQ:PEP) 44.90% ROE Fare Against The Industry?

and want a simplistic look at the return on PepsiCo Inc (NASDAQ:PEP) stock. … However, ROE only measures returns against equity, not debt. … Return on Equity (ROE) weighs PepsiCo’s profit against the level of its shareholders’ equity.

Simply Wall St -

Is PepsiCo Inc's (NASDAQ:PEP) Future Growth Already Accounted For In Today's Price?

Is PEP's share price justifiable by its earnings growth? … As the legendary value investor Ben Graham once said, “Price is what you pay, value is what you get.” PepsiCo is trading at price-to-earnings (PE) ratio of 28.88x, which tells us the stock is overvalued based on current earnings compared to the beverage industry average of 23.79x , and overvalued compared to the US market average ratio of 18.26x. … NasdaqGS:PEP PE PEG Gauge May 7th 18 After looking at PEP's value based on current earnings, we can see it seems overvalued relative to other companies in the industry.

Simply Wall St -

What You Must Know About PepsiCo Inc's (NASDAQ:PEP) Financial Strength

View our latest analysis for PepsiCo How does PEP’s operating cash flow stack up against its debt? … On top of this, PEP has produced US$9.99B in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 25.44%, indicating that PEP’s operating cash is sufficient to cover its debt. … Next Steps: PEP’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

PEP Company Info

Description

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 potato, Ruffles potato, and Tostitos tortilla chips. Its Quaker Foods North America segment provides cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes under the Aunt Jemima, Cap’n crunch, Life, Quaker Chewy, Quaker, and Rice-A-Roni brands. The company’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under the Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Mountain Dew, Pepsi, Propel, Sierra Mist, and Tropicana brands; and ready-to-drink tea, coffee, and juices. Its Latin America segment provides snack foods under the Cheetos, Doritos, Emperador, Lay’s, Marias Gamesa, Rosquinhas Mabel, Ruffles, Sabritas, Saladitas, and Tostitos brands; Quaker-branded cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the 7UP, Diet Pepsi, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, Pepsi Black, and Toddy. The company’s Europe Sub-Saharan Africa segment offers snack food under the Cheetos, Chipita, Doritos, Lay’s, Ruffles, and Walkers; Quaker-branded cereals and snacks; beverage concentrates, fountain syrups, and finished goods under the 7UP, Diet Pepsi, Mirinda, Pepsi, Pepsi Max, and Tropicana; ready-to-drink tea products; and dairy products under the Agusha, Chudo, and Domik v Derevne brands. Its Asia, Middle East and North Africa segment provides snack foods under the Cheetos, Chipsy, Doritos, Kurkure, and Lay’s brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods under the 7UP, Aquafina, Mirinda, Mountain Dew, Pepsi, Sting, and Tropicana brands; and ready-to-drink tea products. The company was founded in 1898 and is headquartered in Purchase, New York.

Details
Name: PepsiCo, Inc.
PEP
Exchange: NasdaqGS
Founded: 1898
$178,157,515,150
1,401,821,663
Website: http://www.pepsico.com
Address: PepsiCo, Inc.
700 Anderson Hill Road,
Purchase,
New York, 10577,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PEP Common Stock Nasdaq Global Select US USD 02. Jan 1968
DB PEP Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA PEP Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0QOS Common Stock London Stock Exchange GB CHF 02. Jan 1968
SWX PEP Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
ENXTBR PEP Common Stock Euronext Brussels BE USD 02. Jan 1968
WBAG PEPS Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE PEP Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV PEP * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA PEPB34 BDR EACH REPR 1 CAP USD0.016666 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2012
Number of employees
Current staff
Staff numbers
267,000
PepsiCo employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:40
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/17
Last earnings reported: 2019/03/23
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.