Pepsico Inc

Consumer Staples
Beverages (Production/Distribution)
www.pepsico.com

Earnings Score
Moat Score
Safety Score

Market Cap $216.65B
PE 23
Debt $45.01B
Cash $7.34B
EV $254.32B
FCF $6.20B

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$9.36B
EBIT	$12.32B
ROE	48%
ROA	12%
FCF	$6.20B
Equity	$19.61B
Growth Stability	80%
PE	23.15
PEG	4
PB	11.05
P/FCF	34.94
P/S	2.36
Price/Cash	0.03
Debt/Equity	2.3
Debt/FCF	7.26
Net Margins	13%
Gross Margins	55%
Op. Margins	13%
Earnings CAGR	6%
Sales Growth YoY	-1%
Sales Growth QoQ	4%
Sales CAGR	5%
FCF CAGR	-1%
Equity CAGR	5%
Earnings Stability	0.27
Earnings Growth YoY	-5%
Earnings Growth QoQ	-5%
Earnings CAGR 5Y	6%

Sales CAGR 5Y	8%
FCF CAGR 5Y	4%
Equity CAGR 5Y	9%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	1%
Equity CAGR 3Y	4%
Market Cap	$216.65B
Revenue	$91.92B
Dividend Yield	3%
Payout Ratio	76%
Assets	$100.51B
Total Debt	$45.01B
Cash	$7.34B
Shares Outstanding	1.37B
EV	254.32B
Earnings Score	11%
Moat Score	95%
Safety Score	73%
Final Score	59%
Working Capital	-3.46B
Current Ratio	0.89
Gross Profit	$50.26B
Shares Growth 3y	-0%
Equity Growth QoQ	0%
Equity Growth YoY	3%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

PepsiCo is one of the largest food and beverage companies globally. It makes, markets, and sells a slew of brands across the beverage and snack categories, including Pepsi, Mountain Dew, Gatorade, Doritos, Lays, and Ruffles. The firm uses a largely integrated go-to-market model, though it does leverage third-party bottlers, contract manufacturers, and distributors in certain markets. In addition to company-owned trademarks, Pepsi manufactures and distributes other brands through partnerships and joint ventures with companies such as Starbucks. The firm segments its operations into five primary geographies, with North America (comprising Frito-Lay North America, Quaker Foods North America, and North America beverages) constituting around 60% of consolidated revenue.

SEC Filings

Direct access to Pepsico Inc (PEP) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 07
- 10-Q Jun 15
- 10-Q Mar 23
2023
- 10-K Dec 30
- 10-Q Sep 09
- 10-Q Jun 17
- 10-Q Mar 25
2022
- 10-K Dec 31
- 10-Q Sep 03
- 10-Q Jun 11
- 10-Q Mar 19

Sector Comparison

How does Pepsico Inc compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Pepsico Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 6%

Stability 27%

loading chart...

Pepsico Inc Discounted Cash Flow

Fully customizable DCF calculator online for Pepsico Inc.

Years

Calculation mode

= $58B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$6.2B	$6.1B	$6.1B	$6B	$5.9B	$5.9B	$5.8B	$5.8B	$5.7B	$5.6B	$5.6B	$56B
DCF		$5.6B	$5B	$4.5B	$4.1B	$3.7B	$3.3B	$3B	$2.7B	$2.4B	$2.2B	$22B
Value	$58B

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	10%	9%	10%	8%	19%	11%	10%	10%	10%	10%	13%
ROA	-	12%	13%	13%	13%	13%	11%	12%	12%	12%	12%
ROE	-	45%	56%	44%	86%	49%	53%	47%	52%	49%	48%

Good Net Margins (12.57%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.65	5.61	6.16	5.91	6.45	7.45	6.32	7.52	6.06	7.26
Debt over Equity	1.88	3.02	3.68	3.92	2.48	2.35	3.51	2.74	2.44	2.58	2.3
Growth Stability	-	-	-	80%	100%	93%	87%	85%	100%	100%	80%

Bad Debt/FCF ratio (7.26)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (2.3)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (80%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-5%	-0%	1%	2%	4%	5%	13%	9%	6%	8%
Earnings YoY growth	-	-16%	16%	-23%	158%	-42%	-3%	7%	17%	2%	6%
Equity YoY growth	-	-31%	-7%	-2%	32%	2%	-9%	19%	7%	8%	9%
FCF YoY growth	-	2%	-6%	-5%	-13%	-12%	18%	10%	-20%	41%	4%