PepsiCo (PEP) AI Stock Analysis

• Market Cap: $195.39B
• Dividend Yield: 3.89%
• Average Volume (3M): 7.18M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.14
• Revenue Growth: 0.48%
• EPS Growth: -22.61%
• Country: US
• Employees: 319,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 2.29
• Shares Outstanding: 1,367,340,100
• 10 Day Avg. Volume: 6,023,732
• 30 Day Avg. Volume: 7,177,716
• PEG Ratio: 3.68
• Price to Book (P/B): 11.57
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 29.04
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 3.77
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 23.19
• 1Y Price Target: $157.92
• Price Target Upside: 10.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 8.11
• Revenue Forecast (FY): $93.45B

• Rating: 78 Outperform
• Price Target: $165.00 ▲(15.47% Upside)

PepsiCo's strong financial performance and optimistic earnings call sentiment are the most significant factors driving the stock score. While technical indicators and valuation suggest moderate potential, the company's strategic focus on innovation and operational efficiency supports a positive outlook.

Positive Factors

Beverage Segment Growth

The growth in PepsiCo's beverage segment indicates strong brand positioning and market demand, which can drive sustained revenue growth and enhance competitive advantage.

Innovation and Brand Relaunches

By relaunching major brands and expanding product platforms, PepsiCo is likely to capture new market segments and increase consumer engagement, supporting long-term growth.

Cost Structure Improvements

Improving cost structures can enhance PepsiCo's margin sustainability, allowing for better profitability and financial health over the long term.

Negative Factors

Volume Pressures in Food Segment

The shift in promotional strategy leading to volume pressures could hinder growth in the food segment, affecting overall revenue and market share.

Challenges in China

Consumer stress in China poses a risk to PepsiCo's growth in a key international market, potentially affecting its global revenue expansion strategy.

SKU Rationalization Impact

While SKU rationalization can lead to efficiencies, it may also limit product variety, potentially impacting organic growth and consumer choice.

PepsiCo Business Overview & Revenue Model

Company Description

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. 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 headquartered in Purchase, New York.

How the Company Makes Money

PepsiCo generates revenue primarily through the sale of its beverages and snack products. The company's revenue model is structured around various key streams, including the sale of carbonated soft drinks, bottled water, sports drinks, fruit juices, and a wide range of snack foods. PepsiCo benefits from a strong distribution network, which includes direct store delivery, warehouse distribution, and partnerships with retailers. Significant partnerships with major grocery chains, convenience stores, and restaurants enhance its market reach. Additionally, PepsiCo invests in marketing and advertising to strengthen brand loyalty and drive sales. The company also focuses on product innovation and health-oriented offerings, which attract a growing segment of health-conscious consumers, thereby expanding its revenue potential.

PepsiCo Financial Statement Overview

Summary

PepsiCo demonstrates strong profitability and cash generation, with stable margins and efficient operations. Despite a slight decline in return on equity and revenue growth, the company's financial stability and effective debt management position it well for future growth.

Income Statement

PepsiCo has shown strong profitability with a consistent gross profit margin around 54% and a net profit margin around 8% over the periods. The company has seen moderate revenue growth of 3.7% from 2022 to 2023, and a slight decline of 0.1% TTM (Trailing-Twelve-Months). EBIT and EBITDA margins are solid, though there was a decline in EBIT margin TTM. Overall, PepsiCo's income statement reflects stability and efficiency in its operations.

Balance Sheet

PepsiCo maintains a moderate debt-to-equity ratio of approximately 2.8, indicating a balanced approach to leveraging. The company has a stable equity ratio of around 17.5%, suggesting a solid capital structure. However, the return on equity has decreased from 49% in 2024 to 41% TTM, reflecting a need for improved profitability relative to equity capital. The balance sheet demonstrates financial stability with a focus on maintaining shareholder value.

Cash Flow

PepsiCo's cash flow is robust, with a strong operating cash flow to net income ratio around 1.6, indicating efficient cash generation from operations. The free cash flow has grown by approximately 19.2% from 2023 to 2024, though it decreased by 10.4% TTM. The free cash flow to net income ratio is healthy, suggesting effective capital expenditure management. Overall, the cash flow statement highlights PepsiCo's strong cash generation capabilities and efficient capital allocation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	64.58B	91.85B	91.47B	86.39B	67.16B	64.66B
Gross Profit	35.11B	50.11B	49.59B	45.82B	37.03B	35.28B
EBITDA	10.49B	16.68B	15.75B	14.92B	13.09B	12.81B
Net Income	5.70B	9.58B	9.07B	8.91B	7.31B	12.52B
Balance Sheet
Total Assets	106.56B	99.47B	100.50B	92.19B	78.55B	77.65B
Cash, Cash Equivalents and Short-Term Investments	8.66B	9.27B	10.00B	5.35B	5.74B	8.99B
Total Debt	50.85B	44.95B	44.66B	39.55B	32.51B	32.32B
Total Liabilities	87.02B	81.30B	81.86B	74.91B	63.68B	63.05B
Stockholders Equity	19.39B	18.04B	18.50B	17.15B	14.79B	14.52B
Cash Flow
Free Cash Flow	5.47B	7.19B	7.92B	5.60B	5.42B	6.13B
Operating Cash Flow	5.47B	12.51B	13.44B	10.81B	9.65B	9.41B
Investing Cash Flow	-5.24B	-5.47B	-5.50B	-2.43B	-6.44B	4.56B
Financing Cash Flow	-1.01B	-7.56B	-3.01B	-8.52B	-8.49B	-13.77B

PepsiCo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEP, the sentiment is Negative. The current price of 142.9 is below the 20-day moving average (MA) of 149.18, below the 50-day MA of 145.39, and above the 200-day MA of 140.50, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 10.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEP.

PepsiCo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNST	80 Outperform	$65.29B	41.76	24.10%	―	3.70%	-0.53%
KO	78 Outperform	$295.35B	22.73	45.12%	2.93%	2.93%	25.42%
PEP	78 Outperform	$195.39B	27.19	37.19%	3.89%	0.48%	-22.61%
CELH	75 Outperform	$15.36B	164.21	7.91%	―	11.85%	-64.69%
CCEP	74 Outperform	$40.07B	23.95	17.99%	2.55%	9.65%	-4.26%
KDP	69 Neutral	$35.95B	22.80	6.29%	3.48%	6.77%	-29.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

PepsiCo Corporate Events

PepsiCo Reports Q3 2025 Earnings with Revenue Growth

PepsiCo, Inc. is a leading global food and beverage company known for its diverse product portfolio, including iconic brands like Pepsi, Mountain Dew, Lay’s, and Gatorade, operating primarily in the consumer goods sector. In its latest earnings report for the third quarter of 2025, PepsiCo reported a 2.6% increase in net revenue, reflecting the resilience of its international business and improved performance in North America Beverages. However, the company faced a decline in earnings per share (EPS) by 11% compared to the previous year, impacted by foreign exchange rates and other factors. Key highlights from the report include a 1.3% organic revenue growth and a core EPS of $2.29 for the quarter. The company also emphasized its strategic focus on accelerating growth and optimizing its cost structure through innovation and portfolio transformation. Looking ahead, PepsiCo remains committed to achieving low-single-digit organic revenue growth for the fiscal year 2025, with expectations for core constant currency EPS to remain stable compared to the prior year.

PepsiCo’s Earnings Call: Balanced Sentiment with Growth Optimism

PepsiCo’s recent earnings call presented a balanced sentiment, highlighting positive developments in its beverage segment and international recovery, driven by innovation and cost structure improvements. However, challenges remain in the food segment and certain international markets, alongside the impacts of SKU rationalization. Overall, the sentiment was optimistic about future growth prospects.

PepsiCo Appoints New CFO Amidst Financial Growth

On October 7, 2025, PepsiCo announced the appointment of Stephen Schmitt as Executive Vice President and Chief Financial Officer, effective November 10, 2025. Schmitt, who previously held a similar role at Walmart U.S., will succeed Jamie Caulfield, who will retire in May 2026. Additionally, PepsiCo reported its third-quarter 2025 financial results, highlighting a 2.6% increase in net revenue and a strategic focus on accelerating growth and optimizing costs. The company reaffirmed its financial guidance for the year, emphasizing resilience in its international business and improved momentum in North America.

The most recent analyst rating on (PEP) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on PepsiCo stock, see the PEP Stock Forecast page.

PepsiCo Issues €1 Billion in Senior Notes

On July 21, 2025, PepsiCo announced the issuance of €1 billion in senior notes, split equally between 3.450% notes due in 2037 and 4.050% notes due in 2055. The proceeds, approximately €989 million after expenses, will be used for general corporate purposes, including repaying commercial paper, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (PEP) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on PepsiCo stock, see the PEP Stock Forecast page.

PepsiCo Announces $3.5 Billion Senior Notes Offering

On July 21, 2025, PepsiCo announced the offering of $3.5 billion in senior notes with varying maturity dates and interest rates, aimed at general corporate purposes and repaying commercial paper. The issuance of these notes, managed by major financial institutions, reflects PepsiCo’s strategic financial management and potential impact on its market positioning and stakeholder interests.

The most recent analyst rating on (PEP) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on PepsiCo stock, see the PEP Stock Forecast page.