Pepsico Inc

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

Earnings Score
Moat Score
Safety Score

Market Cap $178.94B
PE 19
Debt $48.52B
Cash $8.32B
EV $219.14B
FCF $7.27B

Earnings

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Sales & Net Margins

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Earnings	$9.37B
EBIT	$12.75B
ROE	51%
ROA	13%
FCF	$7.27B
Equity	$18.53B
Growth Stability	85%
PE	19.1
PEG	3.28
PB	9.66
P/FCF	24.62
P/S	1.96
Price/Cash	0.05
Debt/Equity	2.62
Debt/FCF	6.68
Net Margins	10%
Gross Margins	55%
Op. Margins	14%
Earnings CAGR	5%
Sales Growth YoY	-2%
Sales Growth QoQ	-36%
Sales CAGR	6%
FCF CAGR	-0%
Equity CAGR	6%
Earnings Stability	0.23
Earnings Growth YoY	-10%
Earnings Growth QoQ	20%
Earnings CAGR 5Y	6%

Sales CAGR 5Y	7%
FCF CAGR 5Y	2%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	8%
Equity CAGR 3Y	2%
Market Cap	$178.94B
Revenue	$91.52B
Dividend Yield	4%
Payout Ratio	78%
Assets	$101.74B
Total Debt	$48.52B
Cash	$8.32B
Shares Outstanding	1.37B
EV	219.14B
Earnings Score	10%
Moat Score	94%
Safety Score	73%
Final Score	59%
Working Capital	-5.22B
Current Ratio	0.83
Gross Profit	$50.10B
Shares Growth 3y	-0%
Equity Growth QoQ	2%
Equity Growth YoY	-3%

Assets & ROA

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Stockholders Equity & ROE

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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.

2025
- 10-Q Mar 22
2024
- 10-K Dec 28
- 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

Sector Comparison

How does Pepsico Inc compare to its competitors?

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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 5%

Stability 23%

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Pepsico Inc Discounted Cash Flow

Fully customizable DCF calculator online for Pepsico Inc.

Years

Calculation mode

= $72B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$7.3B	$7.3B	$7.3B	$7.3B	$7.3B	$7.3B	$7.3B	$7.2B	$7.2B	$7.2B	$7.2B	$72B
DCF		$6.6B	$6B	$5.5B	$5B	$4.5B	$4.1B	$3.7B	$3.4B	$3.1B	$2.8B	$28B
Value	$72B

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	12/2024	TTM
Net Margins	9%	10%	8%	19%	11%	10%	10%	10%	10%	10%	10%
ROA	-	13%	13%	13%	13%	11%	12%	12%	12%	13%	13%
ROE	-	56%	44%	86%	49%	53%	47%	52%	49%	53%	51%

Good Net Margins (10.23%)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	5.61	6.16	5.91	6.45	7.45	6.32	7.52	6.06	6.72	6.68
Debt over Equity	3.02	3.68	3.92	2.48	2.35	3.51	2.74	2.44	2.58	2.66	2.62
Growth Stability	-	-	-	100%	93%	87%	85%	100%	100%	100%	85%

Bad Debt/FCF ratio (6.68)

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 (2.62)

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

Neutral Graham’s Stability (85%)

The company has a stability in its earnings that is not too good nor too bad.

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-0%	1%	2%	4%	5%	13%	9%	6%	0%	7%
Earnings YoY growth	-	16%	-23%	158%	-42%	-3%	7%	17%	2%	6%	6%
Equity YoY growth	-	-7%	-2%	32%	2%	-9%	19%	7%	8%	-3%	8%
FCF YoY growth	-	-6%	-5%	-13%	-12%	18%	10%	-20%	41%	-9%	2%