PepsiCo (PEP) AI Stock Analysis

• Market Cap: $197.85B
• Dividend Yield: 3.8%
• Average Volume (3M): 10.83M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.17
• Revenue Growth: -0.34%
• EPS Growth: -20.51%
• Country: US
• Employees: 319,000
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 1.48
• Shares Outstanding: 1,369,077,100
• 10 Day Avg. Volume: 10,857,694
• 30 Day Avg. Volume: 10,827,702
• PEG Ratio: -1.36
• Price to Book (P/B): 10.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.27
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: 3.81
• 1Y Price Target: $154.77
• Price Target Upside: 7.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $160.00 ▲(10.72%Upside)

PepsiCo receives a solid score driven by strong financial performance and effective cash generation. While there are positive signs in operational improvements and international growth, caution is warranted due to high valuation and potential challenges in key markets. The company's strategic financial management further supports its stability and growth outlook.

Positive Factors

Earnings

PepsiCo's stock rallied on a modest 2Q beat-and-raise for core EPS on smaller FX headwinds and re-affirmation of sequential improvement.

International Growth

International growth was robust, contributing positively to the overall performance with a 5.7% increase in Q2.

Negative Factors

Margin Risk

As PEP continues to navigate a tepid sales environment in North America and with heightened margin risk, the valuation multiple has been lowered.

U.S. Topline Challenges

Despite the positive developments, topline growth in the United States remains muted, with ongoing challenges.

PepsiCo Business Overview & Revenue Model

Company Description

PepsiCo, Inc. is a global food and beverage leader with a diverse product portfolio that includes iconic brands such as Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, and Quaker. Operating in over 200 countries and territories, the company is organized into several key divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa, the Middle East and South Asia, and Asia Pacific, Australia/New Zealand and China. PepsiCo focuses on delivering convenient foods and beverages to consumers through a variety of retail and foodservice channels.

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's financial statements reflect a well-managed company with strong profitability and cash generation. Despite some fluctuations in revenue growth and a decline in return on equity, the company maintains financial stability through efficient operations and a balanced capital structure. PepsiCo's ability to generate cash and manage debt effectively positions it well for future growth and shareholder value creation.

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

PepsiCo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144.51
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 144.51 is above the 20-day moving average (MA) of 137.25, above the 50-day MA of 132.78, and below the 200-day MA of 145.68, indicating a neutral trend. The MACD of 3.45 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 89.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PEP.

PepsiCo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCEP	79 Outperform	$46.01B	29.95	17.43%	0.03%	11.73%	-15.34%
KDP	77 Outperform	$45.50B	30.34	6.18%	2.74%	4.63%	-28.22%
COKE	76 Outperform	$9.75B	19.87	36.83%	5.00%	3.21%	31.84%
MNST	76 Outperform	$57.72B	39.08	20.00%	―	1.47%	-4.87%
PEP	74 Outperform	$197.85B	26.56	39.88%	3.80%	-0.34%	-20.51%
KO	73 Outperform	$297.68B	24.53	44.76%	2.88%	1.34%	14.67%
Sector *	65 Neutral	$27.20B	15.73	-4.29%	2.57%	1.03%	4.90%

PepsiCo Corporate Events

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.

PepsiCo Announces Realignment of Reportable Segments

PepsiCo announced a realignment of its reportable segments effective from the first quarter of 2025, reflecting changes in its organizational structure. This restructuring aims to streamline operations and enhance the monitoring and resource allocation by the CEO, impacting how historical segment data is reported but not altering previously reported financial statements.

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 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.