PEP
NEUTRAL
$154.85
Live
PepsiCo, Inc. · NYSE
Target $169.78
(+9.6%)
$127.6
52W Range
$171.48
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Apr 16, 2026
Market cap
$211.67B
P/E
25.81
ROE
42.8%
Profit margin
8.8%
Debt/Equity
2.58
Dividend yield
3.65%
AI Analysis
AI-powered fundamental assessment
Confidence
85%
PepsiCo exhibits a stable but mediocre deterministic health profile with a Piotroski F-Score of 4/9 and a high Debt/Equity ratio of 2.58. While the company maintains an exceptional earnings beat record over 25 quarters and a strong ROE of 42.85%, these are offset by a dangerously high dividend payout ratio of 93.71% and poor liquidity (Current Ratio 0.85). The stock currently trades below its growth-based intrinsic value of $177.0, but bearish insider activity and a 0/100 technical trend suggest limited immediate upside.
Key Strengths
Exceptional ROE of 42.85% indicating high efficiency in generating profit from equity
Consistent earnings track record with beats in nearly all of the last 25 quarters
Strong gross margins (54.46%) reflecting significant brand pricing power
Attractive dividend yield of 3.65% for income-focused investors
Positive forward P/E compression (16.94 vs 25.81) suggesting expected earnings growth
Key Risks
Unsustainable dividend payout ratio of 93.71%, leaving little room for error or reinvestment
Weak liquidity position with a current ratio of 0.85 and quick ratio of 0.64
High leverage with a Debt/Equity ratio of 2.58, increasing vulnerability to interest rate shifts
Bearish insider sentiment, specifically sales by the CEO and other officers
Technical trend is currently 0/100, indicating strong bearish momentum
AI Fair Value Estimate
Based on comprehensive analysis
$162.5
+4.9% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
60
Strong
65
70
95
40
30
AI Verdict
Stable Giant with Financial Friction
Key drivers: Consistent EPS beats, High leverage, Unsustainable payout ratio, Strong brand equity
Confidence
90%
Value
65/100
P/E is moderate for the sector, but the Graham Number is an unrealistic floor for a brand-heavy consumer staple.
Positives
- Trades below intrinsic value of $177
- Forward P/E is reasonable at 16.94
Watchpoints
- Price/Book is very high at 10.37
- Trades significantly above Graham Number ($44.89)
Future
70/100
Growth is steady but not explosive, typical for a mature consumer defensive leader.
Positives
- Strong YoY earnings growth of 67.50%
- Steady revenue growth of 5.60%
Watchpoints
- Recent Q/Q EPS growth slightly negative (-1.3%)
Past
95/100
One of the most reliable earnings machines in the consumer defensive sector.
Positives
- 25 consecutive quarters of meeting or beating estimates
- Consistent 5-year positive price change (+25.4%)
Watchpoints
No urgent risks highlighted.
Health
40/100
Financial health is the weakest link, characterized by high leverage and low liquidity.
Positives
- Piotroski F-Score of 4/9 is considered 'Stable'
Watchpoints
- Debt/Equity of 2.58 is high
- Current Ratio < 1.0 indicates liquidity pressure
Dividend
30/100
The dividend is high-yield but lacks a safety margin due to the payout ratio.
Positives
- Yield of 3.65% is attractive
Watchpoints
- Payout ratio of 93.71% is critically high
- Dividend strength score is only 20/100
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$154.85
Analyst Target
$169.78
Upside/Downside
+9.6%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for PEP and closest competitors.
Updated 2026-04-15
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
PEP
PepsiCo, Inc.
Primary
|
+25.4% | -7.1% | +12.8% | +4.4% | -1.8% | +0.0% |
|
PM
Philip Morris International Inc.
Peer
|
+153.1% | +89.2% | +25.8% | -7.3% | -1.5% | +1.3% |
|
BUD
Anheuser-Busch InBev SA/NV
Peer
|
+15.0% | +23.0% | +47.5% | -0.5% | +9.5% | +1.9% |
|
BTI
British American Tobacco p.l.c.
Peer
|
+131.6% | +96.1% | +69.8% | +16.4% | +4.7% | +1.6% |
|
KO
The Coca-Cola Company
Peer
|
+63.4% | +28.6% | +8.1% | +9.2% | -0.4% | -0.1% |
PEP
PepsiCo, Inc.
Primary
5Y
+25.4%
3Y
-7.1%
1Y
+12.8%
6M
+4.4%
1M
-1.8%
1W
+0.0%
PM
Philip Morris International Inc.
Peer
5Y
+153.1%
3Y
+89.2%
1Y
+25.8%
6M
-7.3%
1M
-1.5%
1W
+1.3%
BUD
Anheuser-Busch InBev SA/NV
Peer
5Y
+15.0%
3Y
+23.0%
1Y
+47.5%
6M
-0.5%
1M
+9.5%
1W
+1.9%
BTI
British American Tobacco p.l.c.
Peer
5Y
+131.6%
3Y
+96.1%
1Y
+69.8%
6M
+16.4%
1M
+4.7%
1W
+1.6%
KO
The Coca-Cola Company
Peer
5Y
+63.4%
3Y
+28.6%
1Y
+8.1%
6M
+9.2%
1M
-0.4%
1W
-0.1%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
25.81
Forward P/E
16.94
PEG Ratio
1.67
P/B Ratio
10.37
P/S Ratio
2.25
EV/Revenue
2.72
EV/EBITDA
14.05
Market Cap
$211.67B
Profitability
Profit margins and return metrics
Profit Margin
8.77%
Operating Margin
14.07%
Gross Margin
54.46%
ROE
42.85%
ROA
9.05%
Growth
Revenue and earnings growth rates
Revenue Growth
+5.6%
Earnings Growth
+67.5%
Q/Q Revenue Growth
+5.61%
Q/Q Earnings Growth
+66.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
2.58
High debt
Current Ratio
0.85
Weak
Quick Ratio
0.64
Poor
Cash/Share
$6.97
Financial Statement Flow
Interactive flow visualization showing how money moves through the company Q4 2025
Revenue
$29.3B
Gross Margin
53.2%
Op. Margin
12.1%
Net Margin
8.7%
Total Assets
$107.4B
Liabilities
$86.9B
Equity
$20.4B
Debt/Equity
4.26x
Operating CF
$6.6B
CapEx
$-1.9B
Free Cash Flow
$4.7B
FCF Yield
71%
Quarterly Earnings History
EPS performance vs analyst estimates
2026-04-16
$N/A
2026-02-03
$2.26
+1.0% surprise
2025-10-09
$2.29
+1.3% surprise
2025-07-17
$2.12
+4.5% surprise
Consumer Defensive Sector Comparison
Comparing PEP against 170 companies in the Consumer Defensive sector
(9 bullish, 60 neutral, 101 bearish)
P/E Ratio
25.81
This Stock
vs
37.45
Sector Avg
-31.1%
(Discount)
Return on Equity (ROE)
42.85%
This Stock
vs
-13.91%
Sector Avg
-407.9%
(Below Avg)
Profit Margin
8.77%
This Stock
vs
-7.77%
Sector Avg
-212.9%
(Weaker)
Debt to Equity
2.58
This Stock
vs
1.89
Sector Avg
+36.9%
(Higher)
Revenue Growth
5.6%
This Stock
vs
111.74%
Sector Avg
-95.0%
(Slower)
Current Ratio
0.85
This Stock
vs
2.29
Sector Avg
-62.8%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
PEP
PepsiCo, Inc.
|
NEUTRAL | $211.67B | 25.81 | 42.8% | 8.8% | $154.85 | |
|
PM
Philip Morris International Inc.
|
BULLISH | $241.95B | 22.17 | -% | 21.6% | $155.43 | Compare |
|
BUD
Anheuser-Busch InBev SA/NV
|
NEUTRAL | $135.98B | 23.22 | -% | 10.4% | $69.88 | Compare |
|
BTI
British American Tobacco p.l.c.
|
NEUTRAL | $128.41B | 31.47 | 6.3% | 12.1% | $59.16 | Compare |
|
KO
The Coca-Cola Company
|
BEARISH | $324.71B | 24.82 | 43.3% | 27.3% | $75.44 | Compare |
PEP
PepsiCo, Inc.
NEUTRAL
Mkt Cap
$211.7B
P/E
25.8
ROE
42.8%
Price
$154.85
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-03-04 | WILLEMSEN EUGENE | Officer | Sale | 6,500 | $1,068,923 |
| 2026-03-02 | POHLAD ROBERT C | Director | Stock Award | 199 | $27,778 |
| 2026-03-02 | LAGUARTA RAMON L | Chief Executive Officer | Sale | 27,945 | $4,677,610 |
| 2026-02-27 | FLAVELL DAVID JAMES | General Counsel | Stock Award | 37,991 | - |
| 2026-02-27 | TAMMARA CHRISTINE E. | Officer | Stock Award | 4,963 | - |
| 2026-02-27 | SCHMITT STEPHEN T. | Chief Financial Officer | Stock Award | 29,542 | - |
| 2026-02-27 | KANIOURA ATHINA | Officer | Stock Award | 44,313 | - |
| 2026-02-27 | LAGUARTA RAMON L | Chief Executive Officer | Stock Award | 112,260 | - |
| 2026-02-27 | KRISHNAN RAMKUMAR | Officer | Stock Award | 44,313 | - |
| 2026-02-27 | POPOVICI SILVIU | Officer | Stock Award | 40,620 | - |
| 2026-02-27 | WILLEMSEN EUGENE | Officer | Stock Award | 39,143 | - |
| 2025-12-01 | VASELLA DANIEL L | Director | Stock Award | 401 | $60,000 |
| 2025-12-01 | BAILEY JENNIFER | Director | Stock Award | 401 | $60,000 |
| 2025-12-01 | DIAMOND SUSAN M | Director | Stock Award | 535 | $80,000 |
| 2025-12-01 | AGBAJE SEGUN | Director | Stock Award | 401 | $60,000 |
WILLEMSEN EUGENE
Officer
2026-03-04
6,500 shares
·
$1,068,923
POHLAD ROBERT C
Director
2026-03-02
199 shares
·
$27,778
LAGUARTA RAMON L
Chief Executive Officer
2026-03-02
27,945 shares
·
$4,677,610
FLAVELL DAVID JAMES
General Counsel
2026-02-27
37,991 shares
TAMMARA CHRISTINE E.
Officer
2026-02-27
4,963 shares
SCHMITT STEPHEN T.
Chief Financial Officer
2026-02-27
29,542 shares
KANIOURA ATHINA
Officer
2026-02-27
44,313 shares
LAGUARTA RAMON L
Chief Executive Officer
2026-02-27
112,260 shares
KRISHNAN RAMKUMAR
Officer
2026-02-27
44,313 shares
POPOVICI SILVIU
Officer
2026-02-27
40,620 shares
WILLEMSEN EUGENE
Officer
2026-02-27
39,143 shares
VASELLA DANIEL L
Director
2025-12-01
401 shares
·
$60,000
BAILEY JENNIFER
Director
2025-12-01
401 shares
·
$60,000
DIAMOND SUSAN M
Director
2025-12-01
535 shares
·
$80,000
AGBAJE SEGUN
Director
2025-12-01
401 shares
·
$60,000
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
21 analysts
Barclays
2026-04-14
Equal-Weight
Equal-Weight
UBS
2026-04-07
Buy
Buy
Deutsche Bank
2026-03-30
Buy
Buy
Piper Sandler
2026-03-12
Overweight
Overweight
TD Cowen
2026-02-20
Hold
Hold
Citigroup
2026-02-04
Buy
Buy
JP Morgan
2026-02-04
Overweight
Overweight
Wells Fargo
2026-02-04
Equal-Weight
Equal-Weight
UBS
2026-01-14
Buy
Buy
Citigroup
2025-12-17
Buy
Buy
Past News Coverage
Recent headlines mentioning PEP from our newsroom.
Newest → oldest
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