PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others.
It is a $172B consumer staples company. Revenue grew 6.4% over the last year, it keeps 11¢ of every dollar of sales as profit, and its net debt equals ~3.8 years of free cash flow. It trades at 16.5× earnings — near the lowest of its own history.
- Website
- pepsico.com
- Location
- Purchase, NY
- Employees
- 306 000
- Sector
- Consumer Defensive
- Founded
- 1898
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, profitability, quality and moat; Growth and Health lag behind.
Valuation90
- P/E vs own history0th pct · 25/25
- FCF yield6.1% · 20/25
- P/S1.8x · 25/25
- EV/EBITDA12.2x · 20/25
Growth30
- Revenue CAGR4.3% · 6/25
- Net income CAGR2.0% · 6/25
- EPS CAGR ~5Y3.2% · 6/25
- Fwd implied growth11.1% · 12/25
Profitability77
- ROIC15.2% · 20/25
- ROE50.2% · 25/25
- Net margin11.1% · 20/25
- Operating margin14.5% · 12/25
Health36
- Altman Zn/a · 0/25
- Current ratio0.93 · 6/25
- Interest coverage10.2x · 25/25
- Net cash / debtD/A 37% · 5/25
Quality87
- Piotroski F5/9 · 15/25
- Beneish M-2.58 · 25/25
- FCF conversion96% · 22/25
- Margin stabilityσ 3.1% · 25/25
Moat88
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin54.6% · 20/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 7.6% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2020AcquisitionPepsiCo announced that it had entered into agreement to acquire Rockstar Energy for US$3.85 billion
- Dec 2, 2019AcquisitionPepsiCo acquired the snacks brand, BFY Brands, who were then folded into the Frito-Lay division
- FY2018FinancialBest year on record$12.5B net income
- Aug 20, 2018AcquisitionPepsiCo announced that it had entered into agreement to acquire SodaStream
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $50B$62.8B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2015ProductPepsiCo also introduced Stubborn Soda, a line of carbonated beverages without high fructose corn syrup
- 2011AcquisitionWhen it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food…
- 2010AcquisitionThis acquisition was completed in 2010, resulting in the formation of a new wholly owned subsidiary of PepsiCo,…
- 2009AcquisitionPepsiCo made a US$7 billion offer to acquire the two largest bottlers of its products in North…
- 2001AcquisitionAcquired Quaker Oats$13.4B — the prize was Gatorade
- 1998AcquisitionPepsiCo purchased the orange juice company Tropicana Products in 1998
- 1975MilestoneThe Pepsi Challengeblind taste tests vs Coke — the cola wars escalate
- 1965MilestonePepsiCo formedmerger with Frito-Lay — drinks meet snacks
- 1965AcquisitionPepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo has since expanded…
- 1898FoundedBrad's Drink becomes Pepsi-Colapharmacist Caleb Bradham in New Bern, NC
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (54.2%)
- Interest covered 10.2× by operating earnings
- High returns on invested capital (ROIC 15.2%)
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+6.4% YoY
- Profitable — makes more than it spends$10.9B TTM
- Profit growing — earnings are higher than last year-2.2% YoY
- Generates cash — cash left after running and investing$10.5B TTM
- Debt under control — could handle its obligations~3.8y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$172B market cap
- Not printing shares — share count not ballooning — you keep your slice-1.4% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 31/100
- Pays a dividend — returns cash to shareholdersyield 4.54%
- Valuation not extreme — price not wildly above earningsP/E 16.5
Peer comparisonPepsiCo, Inc. vs 6 largest consumer defensive peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| PEP this company | $171.8B | 16.5 | +6.4% | 11.1% | Strained |
| WMT Walmart Inc. | $882.9B | 40.8 | +6.2% | 3.0% | Strained |
| COST Costco Wholesale Corp | $419.2B | 45.5 | +10.1% | 3.0% | Mixed |
| KO Coca-Cola Company | $379.3B | 26.5 | +6.5% | 28.6% | Mixed |
| PG Procter & Gamble Company | $351.2B | 21.9 | +3.3% | 18.4% | Solid |
| PM Philip Morris International Inc. | $313.6B | 28.8 | +8.9% | 25.6% | Strained |
| BUD Anheuser-Busch INBEV SA/NV | $152.3B | 16.3 | -0.7% | 11.5% | Strained |
Head-to-head: PEP vs WMT · PEP vs COST · PEP vs KO
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/PEP
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Deeper analysis of PEP on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $126.05 · market cap $172B.