No connection

Search Results

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
Value
65
Future
70
Past
95
Health
40
Dividend
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
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

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

WILLEMSEN EUGENE
Officer
Sell
2026-03-04
6,500 shares · $1,068,923
POHLAD ROBERT C
Director
Stock Award
2026-03-02
199 shares · $27,778
LAGUARTA RAMON L
Chief Executive Officer
Sell
2026-03-02
27,945 shares · $4,677,610
FLAVELL DAVID JAMES
General Counsel
Stock Award
2026-02-27
37,991 shares
TAMMARA CHRISTINE E.
Officer
Stock Award
2026-02-27
4,963 shares
SCHMITT STEPHEN T.
Chief Financial Officer
Stock Award
2026-02-27
29,542 shares
KANIOURA ATHINA
Officer
Stock Award
2026-02-27
44,313 shares
LAGUARTA RAMON L
Chief Executive Officer
Stock Award
2026-02-27
112,260 shares
KRISHNAN RAMKUMAR
Officer
Stock Award
2026-02-27
44,313 shares
POPOVICI SILVIU
Officer
Stock Award
2026-02-27
40,620 shares
WILLEMSEN EUGENE
Officer
Stock Award
2026-02-27
39,143 shares
VASELLA DANIEL L
Director
Stock Award
2025-12-01
401 shares · $60,000
BAILEY JENNIFER
Director
Stock Award
2025-12-01
401 shares · $60,000
DIAMOND SUSAN M
Director
Stock Award
2025-12-01
535 shares · $80,000
AGBAJE SEGUN
Director
Stock Award
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
Maintains
Equal-Weight Equal-Weight
UBS
2026-04-07
Maintains
Buy Buy
Deutsche Bank
2026-03-30
Maintains
Buy Buy
Piper Sandler
2026-03-12
Maintains
Overweight Overweight
TD Cowen
2026-02-20
Maintains
Hold Hold
Citigroup
2026-02-04
Maintains
Buy Buy
JP Morgan
2026-02-04
Maintains
Overweight Overweight
Wells Fargo
2026-02-04
Maintains
Equal-Weight Equal-Weight
UBS
2026-01-14
Maintains
Buy Buy
Citigroup
2025-12-17
Maintains
Buy Buy

Past News Coverage

Recent headlines mentioning PEP from our newsroom.

Newest → oldest
TradingGPT V2 Copilot
Fundamentals • Valuation • Risk
Hi! I'm your fundamentals copilot.

Ask me to:
• Summarize the business quality
• Review valuation and multiples
• Highlight risks and red flags
• Explain growth and margin trends
Home
Terminal
AI Chat
Markets
Profile