Pepsico Inc
PEP
Beverages
Mkt Cap
$231.5BPE
25.51Debt
$48.03BCash
$9.761BEV
$269.7BFCF
$7.924BP/E Ratio
25.51Debt
$48.03BCash
$9.761BEV
$269.7BFCF
$7.924BCharts data: {"Earnings":[{"time":"2014-12-26","value":6503000000},{"time":"2015-12-25","value":5446000000},{"time":"2016-12-30","value":6323000000},{"time":"2017-12-29","value":4853000000},{"time":"2018-12-28","value":12513000000},{"time":"2019-12-27","value":7314000000},{"time":"2020-12-25","value":7120000000},{"time":"2021-12-24","value":7618000000},{"time":"2022-12-30","value":8910000000},{"time":"2023-12-29","value":9074000000}],"Sales":[{"time":"2014-12-26","value":66683000000},{"time":"2015-12-25","value":63056000000},{"time":"2016-12-30","value":62799000000},{"time":"2017-12-29","value":63525000000},{"time":"2018-12-28","value":64661000000},{"time":"2019-12-27","value":67161000000},{"time":"2020-12-25","value":70372000000},{"time":"2021-12-24","value":79474000000},{"time":"2022-12-30","value":86392000000},{"time":"2023-12-29","value":91471000000}],"Net Margins":[{"time":"2014-12-26","value":0.09752110732870446},{"time":"2015-12-25","value":0.08636767317939609},{"time":"2016-12-30","value":0.10068631666109333},{"time":"2017-12-29","value":0.07639512003148367},{"time":"2018-12-28","value":0.19351695767154853},{"time":"2019-12-27","value":0.10890248805110109},{"time":"2020-12-25","value":0.10117660433126811},{"time":"2021-12-24","value":0.09585524825729169},{"time":"2022-12-30","value":0.10313454949532364},{"time":"2023-12-29","value":0.09920083961036831}],"Assets":[{"time":"2014-12-26","value":70509000000},{"time":"2015-12-25","value":69667000000},{"time":"2016-12-30","value":74129000000},{"time":"2017-12-29","value":79804000000},{"time":"2018-12-28","value":77648000000},{"time":"2019-12-27","value":78547000000},{"time":"2020-12-25","value":92918000000},{"time":"2021-12-24","value":92377000000},{"time":"2022-12-30","value":92187000000},{"time":"2023-12-29","value":100495000000}],"Stockholders Equity":[{"time":"2014-12-26","value":17578000000},{"time":"2015-12-25","value":12068000000},{"time":"2016-12-30","value":11246000000},{"time":"2017-12-29","value":11045000000},{"time":"2018-12-28","value":14602000000},{"time":"2019-12-27","value":14868000000},{"time":"2020-12-25","value":13552000000},{"time":"2021-12-24","value":16151000000},{"time":"2022-12-30","value":17273000000},{"time":"2023-12-29","value":18637000000}],"ROE":[{"time":"2014-12-26","value":0.3699510752076459},{"time":"2015-12-25","value":0.45127610208816704},{"time":"2016-12-30","value":0.5622443535479281},{"time":"2017-12-29","value":0.4393843368039837},{"time":"2018-12-28","value":0.8569374058348171},{"time":"2019-12-27","value":0.49192897497982246},{"time":"2020-12-25","value":0.525383707201889},{"time":"2021-12-24","value":0.4716735805832456},{"time":"2022-12-30","value":0.515833960516413},{"time":"2023-12-29","value":0.48688093577292485}],"ROA":[{"time":"2014-12-26","value":0.1358833624076359},{"time":"2015-12-25","value":0.11989894785192415},{"time":"2016-12-30","value":0.13199962228007933},{"time":"2017-12-29","value":0.1316851285649842},{"time":"2018-12-28","value":0.13020296723676075},{"time":"2019-12-27","value":0.1310170980432098},{"time":"2020-12-25","value":0.10848274822962181},{"time":"2021-12-24","value":0.120830942767139},{"time":"2022-12-30","value":0.12487660950025492},{"time":"2023-12-29","value":0.11926961540375143}]}
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. The company offers its products primarily under the Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Aquafina, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Propel, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith's, Sting, SodaStream, Lubimy Sad, Pepsi, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.
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DCF
Discounted Cash Flow Valuation of Pepsico Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $7.924B | $7.763B | $7.606B | $7.451B | $7.3B | $7.152B | $7.007B | $6.864B | $6.725B | $6.588B | $6.455B | $64.55B |
| DCF | $6.751B | $5.751B | $4.899B | $4.174B | $3.556B | $3.029B | $2.581B | $2.198B | $1.873B | $1.596B | $15.96B | |
| Value | $52.36B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 5.9%
Earnings Stability 26%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 8.6% | 10% | 7.6% | 19% | 11% | 10% | 9.6% | 10% | 9.9% | 9.9% |
| ROA | 12% | 13% | 13% | 13% | 13% | 11% | 12% | 12% | 12% | 12% |
| ROE | 45% | 56% | 44% | 86% | 49% | 53% | 47% | 52% | 49% | 49% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +11.7%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.41%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +12.24%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.17%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +55.81%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -5.24%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 4.65 | 5.61 | 6.16 | 5.91 | 6.45 | 7.45 | 6.32 | 7.52 | 6.06 | 6.06 |
| Debt Equity | 3.02 | 3.68 | 3.92 | 2.48 | 2.35 | 3.51 | 2.74 | 2.44 | 2.58 | 2.58 |
| MIN | ||||||||||
| Graham Stability | - | - | 80% | 100% | 93% | 87% | 85% | 100% | 100% | 80% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 6.06.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.08.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.80.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 5.5% | 7.2% | 9.1% | 5.9% | 1.7% |
| Net Income | 5.3% | -6.2% | 8.4% | 1.8% | -0.42% |
| Stockholders Equity | 7.5% | 5% | 11% | 7.9% | 3.3% |
| FCF | 1.1% | 5.3% | 7.5% | 41% | 2.9% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +7.18%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.65%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -6.22%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -0.42%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +5%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +3.32%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +5.26%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +2.89%.