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PepsiCo (PEP)
NASDAQ:PEP
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PepsiCo
(NASDAQ:PEP)
75Outperform
Positive Factors
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.
Market share gains
The Pepsi and Gatorade brands both gained share in the quarter.
Negative Factors
Cost pressures
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.
Earnings guidance cut
The magnitude of the EPS guidance cut was surprising, indicating Pepsi is absorbing tariff costs, which affects flexibility and productivity.
Frito-Lay performance
Stabilizing Frito-Lay volume will require more investment spending than expected, probably in price.
PepsiCo (PEP) vs. S&P 500 (SPY)
Market Cap
$183.38B
Dividend Yield4.06%
Average Volume (3M)8.39M
Price to Earnings (P/E)19.7
Beta (1Y)0.14
Revenue Growth-0.38%
EPS Growth2.23%
CountryUS
Employees319,000
SectorConsumer Defensive
Sector Strength82
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)6.80
Shares Outstanding1,371,079,600
10 Day Avg. Volume8,581,069
30 Day Avg. Volume8,392,709
Financial Highlights & Ratios
PEG Ratio8.81
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.31
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.79
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$151.14Price Target Upside13.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
PepsiCo Business Overview & Revenue Model
Company DescriptionPepsiCo, Inc. is a multinational food and beverage corporation headquartered in Purchase, New York. The company operates through several business segments, including Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa, Middle East and South Asia (AMESA), and Asia Pacific, Australia/New Zealand and China (APAC). PepsiCo's core products include a wide range of beverages such as Pepsi, Mountain Dew, and Gatorade, as well as snacks like Lay's, Doritos, and Cheetos. The company also offers nutritious foods and drinks under brands like Tropicana and Quaker.
How the Company Makes MoneyPepsiCo generates revenue through the sale of its diverse portfolio of beverages and convenient foods. Its business model is centered around manufacturing, marketing, and distributing a wide array of products across various global markets. The company divides its operations into geographical segments, each contributing to its overall revenue. Key revenue streams include the sale of carbonated soft drinks, non-carbonated beverages, and snacks. PepsiCo also earns money through strategic partnerships, licensing agreements, and joint ventures that enhance its distribution capabilities and market penetration. Additionally, the company has a strong focus on innovation, constantly expanding its product lines to meet changing consumer preferences, which further drives its sales growth.
PepsiCo Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business unit or product line contributes, highlighting the company's diverse income streams and identifying key growth drivers.
Shows how much revenue each business unit or product line contributes, highlighting the company's diverse income streams and identifying key growth drivers.
Data provided by:
Main Street Data
Main Street DataPepsiCo Financial Statement Overview
Summary
PepsiCo demonstrates solid financial health across all verticals. The income statement highlights strong profitability and growth, while the balance sheet indicates moderate leverage with strong returns on equity. Cash flow metrics are favorable, reflecting efficient cash generation and management. While there are some leverage concerns, overall, the company's financials are strong and well-positioned for continued success.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.88
Very Positive
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.80
Positive
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.85
Very Positive
| 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 | EBIT |
| 12.89B | 11.99B | 11.51B | 11.16B | 10.08B | EBITDA |
| 16.68B | 15.75B | 14.92B | 14.90B | 13.22B | Net Income Common Stockholders |
| 9.58B | 9.07B | 8.91B | 7.62B | 7.12B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.27B | 10.00B | 5.35B | 5.99B | 9.55B | Total Assets |
| 99.47B | 100.50B | 92.19B | 92.38B | 92.92B | Total Debt |
| 44.95B | 44.66B | 39.07B | 40.33B | 44.15B | Net Debt |
| 36.44B | 34.95B | 34.12B | 34.74B | 35.97B | 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
Negative
133.75
Price Trends
146.37
Negative
147.40
Negative
157.24
Negative
Market Momentum
-3.62
Positive
35.43
Neutral
21.74
Neutral
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 133.75 is below the 20-day moving average (MA) of 140.19, below the 50-day MA of 146.37, and below the 200-day MA of 157.24, indicating a bearish trend. The MACD of -3.62 indicates Positive momentum. The RSI at 35.43 is Neutral, neither overbought nor oversold. The STOCH value of 21.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEP.
PepsiCo Risk Analysis
PepsiCo disclosed 28 risk factors in its most recent earnings report. PepsiCo reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PepsiCo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $308.40B | 28.71 | 40.98% | 2.76% | 1.08% | 0.28% | |
79 Outperform | $41.26B | 26.85 | 17.43% | 2.38% | 11.73% | -15.34% | |
76 Outperform | $58.04B | 40.11 | 21.27% | ― | 4.94% | -4.13% | |
75 Outperform | $183.38B | 19.67 | 50.06% | 4.06% | -0.38% | 2.23% | |
74 Outperform | $46.74B | 31.17 | 6.13% | 2.66% | 3.95% | -28.73% | |
66 Neutral | $9.98B | 18.21 | 36.83% | 0.67% | 3.21% | 31.83% | |
64 Neutral | $8.88B | 14.97 | 4.63% | 174.27% | 3.67% | 4.40% |
* Consumer Defensive Sector Average
Performance Comparison
PEP
PepsiCo
133.75
-36.41
-21.40%
COKE
Coca-Cola Bottling Co Consolidated
1,145.02
292.38
34.29%
KO
Coca-Cola
71.65
11.11
18.35%
KDP
Keurig Dr Pepper
34.41
1.73
5.29%
MNST
Monster Beverage
60.05
5.83
10.75%
CCEP
Coca-Cola Europacific Partners
89.71
20.32
29.28%
PepsiCo Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -5.98%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Neutral
The earnings call highlights international growth and operational improvements, particularly in the beverage segment, but is weighed down by reduced earnings forecasts due to tariffs and challenges in Frito North America and certain international markets.Q1-2025 Updates
Positive Updates
International Business Growth
The international segment is the largest growth engine for PepsiCo, showing a solid 5% growth in the quarter. Key markets like Europe, India, and Brazil are performing well, contributing to the company's overall growth.
Improved Operational Excellence
PepsiCo is focusing on operational excellence across its business units. The company is improving execution, cost efficiency, and leveraging better data and systems, especially in its Frito-Lay segment.
Positive Performance in Beverage Segment
The beverage segment in North America is showing improvement with Pepsi gaining market share and Gatorade regaining share in the sports drink category. Margin improvement is driven by operational excellence.
Portfolio Transformation and Innovation
PepsiCo is investing in portfolio transformation, focusing on offering more options like increased functionality in snacks and expanding in new segments like protein and fiber.
Negative Updates
Reduced Full-Year Earnings Outlook
The full-year earnings outlook has been reduced due to tariffs, macroeconomic uncertainty, and subdued performance in Frito North America. These factors have led to a reevaluation of growth expectations.
Frito North America Challenges
Frito North America is experiencing volume weakness, particularly in higher price points and larger packs. There is a need for more strategic investment and revenue management to address consumer price sensitivity.
Tariffs Impact
New tariffs have been introduced since the start of the year, impacting the company's financial guidance. Mitigation plans are in place, but some will take time to execute.
Challenges in China and Mexico
PepsiCo faces a slowdown in consumer spending in China and the impact of the U.S. economy on Mexico, indicating potential challenges in these markets.
Company Guidance
In the 2025 first quarter earnings call, PepsiCo provided updated guidance reflecting several key metrics. The company adjusted its full-year earnings outlook due to new tariffs, heightened macroeconomic and consumer uncertainty, and subdued performance from Frito-Lay North America. Despite these challenges, PepsiCo maintained its low-single-digit organic revenue growth guidance, citing strong performance in international markets, particularly a solid 5% growth in the quarter. The company's strategy includes continued investment in its international business, which is expected to drive long-term growth and profitability. Additionally, PepsiCo is focused on executing a multi-faceted playbook for Frito-Lay, emphasizing value investments, portfolio transformation, and operational excellence to navigate the challenging consumer environment.PepsiCo Corporate Events
Executive/Board Changes
PepsiCo Appoints New Senior Vice President and Controller
Neutral
Dec 11, 2024
PepsiCo announced the appointment of Christine E. Tammara as the new Senior Vice President and Controller, succeeding Marie T. Gallagher upon her retirement in May 2025. This leadership change is part of PepsiCo’s ongoing efforts to ensure seamless transitions within its executive team, potentially impacting its financial operations and strategic direction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.