PepsiCo (PEP) AI Stock Analysis

• Market Cap: $187.12B
• Dividend Yield: 4.17%
• Average Volume (3M): 10.46M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.17
• Revenue Growth: -0.38%
• EPS Growth: 2.23%
• Country: US
• Employees: 319,000
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 1.48
• Shares Outstanding: 1,371,079,600
• 10 Day Avg. Volume: 13,644,490
• 30 Day Avg. Volume: 10,456,858
• PEG Ratio: -8.78
• Price to Book (P/B): 9.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.35
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 4.34
• Enterprise Value/Ebitda: 3.30
• 1Y Price Target: $148.33
• Price Target Upside: 8.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $154.00 ▲(12.84%Upside)

PepsiCo's overall stock score reflects its strong financial performance and strategic initiatives to enhance liquidity and drive international growth. However, technical indicators and valuation suggest some caution, and challenges from tariffs and North American market conditions weigh on the score.

Positive Factors

Cost Structure

Re-thinking NA food cost structure could add up to 4 points to EPS growth, providing breathing room or funds to reinvest.

International Growth

International segment maintained momentum with 5% y/y organic revenue growth, marking the 16th consecutive quarter of at least mid-single digit expansion.

Negative Factors

Cost Structure Pressure

If no action is taken on cost structure, PEP remains at the whims of the category, potentially putting more pressure on the stock.

Earnings Guidance

Revised core EPS guidance in USD terms from low single-digit growth to a 3% decline due to cost pressures and demand uncertainties linked to Trump’s tariff policies.

Sales and Profit Expectations

Management lowered sales and profit expectations for PFNA due to continued pressure from the cumulative impact of inflation and value-conscious shopping.

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 wide array of food and beverage products across multiple global markets. The company's revenue model is centered around its diverse portfolio of brands, which includes both carbonated and non-carbonated beverages, savory snacks, cereals, and other food products. Key revenue streams include the retail sales of these products in supermarkets, convenience stores, and through vending machines, as well as direct sales to restaurants, schools, and other institutions. PepsiCo also benefits from strategic partnerships and distribution agreements, which enhance its market reach and accessibility. The company's earnings are influenced by consumer preferences, marketing strategies, and its ability to innovate and adapt to changing market trends.

PepsiCo Financial Statement Overview

Summary

PepsiCo demonstrates strong financial health with solid profitability and growth as highlighted by its income statement. While leverage is a moderate concern as reflected in the balance sheet, the company's cash flow is robust, indicating efficient cash management and generation.

Income Statement

PepsiCo's income statement shows strong stability and growth. The gross profit margin is healthy, reflecting efficient cost management. The net profit margin is solid, indicating profitability. Revenue growth is consistent over the years, with slight fluctuations. EBIT and EBITDA margins also reflect strong operational performance.

Balance Sheet

The balance sheet reveals a moderately high debt-to-equity ratio, which indicates some leverage risk. However, the return on equity is strong, showcasing effective utilization of equity to generate profits. The equity ratio suggests a balanced capital structure, although there's room for improvement in reducing liabilities.

Cash Flow

PepsiCo's cash flow is robust, with stable free cash flow and operating cash flow to net income ratio indicating efficient cash management. The free cash flow growth rate is positive, suggesting good cash generation capacity. These metrics underscore the company's ability to support operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.52B	91.85B	91.47B	86.39B	79.47B	70.37B
Gross Profit	50.10B	50.11B	49.59B	45.82B	42.40B	38.58B
EBITDA	16.57B	16.68B	15.75B	14.92B	14.90B	13.22B
Net Income	9.37B	9.58B	9.07B	8.91B	7.62B	7.12B
Balance Sheet
Total Assets	101.74B	99.47B	100.50B	92.19B	92.38B	92.92B
Cash, Cash Equivalents and Short-Term Investments	8.58B	9.27B	10.00B	5.35B	5.99B	9.55B
Total Debt	48.52B	44.95B	44.66B	39.55B	40.78B	44.61B
Total Liabilities	83.21B	81.30B	81.86B	74.91B	76.23B	79.37B
Stockholders Equity	18.39B	18.04B	18.50B	17.15B	16.04B	13.45B
Cash Flow
Free Cash Flow	7.27B	7.19B	7.92B	5.60B	6.99B	6.37B
Operating Cash Flow	12.57B	12.51B	13.44B	10.81B	11.62B	10.61B
Investing Cash Flow	-6.14B	-5.47B	-5.50B	-2.43B	-3.27B	-11.62B
Financing Cash Flow	-5.80B	-7.56B	-3.01B	-8.52B	-10.78B	3.82B

PepsiCo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 136.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEP, the sentiment is Neutral. The current price of 136.48 is above the 20-day moving average (MA) of 130.75, above the 50-day MA of 130.98, and below the 200-day MA of 147.83, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 91.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PEP.

PepsiCo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCEP	79 Outperform	$42.93B	27.94	17.43%	1.88%	11.73%	-15.34%
PEP	77 Outperform	$187.12B	20.07	50.06%	4.17%	-0.38%	2.23%
MNST	76 Outperform	$61.97B	41.62	20.00%	―	1.47%	-4.87%
KO	75 Outperform	$308.49B	28.70	40.98%	2.88%	1.15%	0.28%
KDP	72 Outperform	$45.59B	30.41	6.13%	2.72%	3.95%	-28.73%
COKE	69 Neutral	$10.11B	20.16	36.83%	0.86%	3.21%	31.84%
Sector *	53 Neutral	C$4.38B	3.83	-22.83%	4.39%	8.13%	2.00%

PepsiCo Corporate Events

PepsiCo Enters New $5 Billion Credit Agreements

On May 23, 2025, PepsiCo terminated its previous $5 billion 364-day and five-year unsecured revolving credit agreements and simultaneously entered into new agreements of the same value with Citibank, N.A. as the administrative agent. These new credit agreements allow PepsiCo and its subsidiaries to borrow up to $5 billion in U.S. Dollars and/or Euros, with options to increase commitments and extend terms, supporting general corporate purposes. This strategic financial move enhances PepsiCo’s liquidity and flexibility, potentially impacting its market positioning and stakeholder interests.

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

PepsiCo Shareholders Approve Directors, Reject ESG Proposals

During the 2025 Annual Meeting of Shareholders held on May 7, 2025, PepsiCo announced the election of 15 directors, the ratification of KPMG LLP as its accounting firm, and the approval of executive compensation. However, shareholders voted against proposals related to non-sugar sweetener risks, racial equity audits, biodiversity risks, and sustainable packaging, indicating a focus on traditional business operations over new sustainability and social governance initiatives.