PepsiCo (PEP)
Consumer Staples · $179B market cap · SEC CIK 0000077476
fundamentals score out of 100
Next reports on Oct 8, 2026, before the open, with analysts expecting $2.32 in earnings per share.
The case for PEP
- Earns 50% back on shareholder equity.
- Earnings per share up 38.9%.
- Pays a 3.0% dividend while you wait.
- Reasonably priced at 17.1× earnings.
- A PEG of 0.44: a P/E of 17.1× is low for EPS growing 39%.
- Moves less than the market (beta 0.33).
The case against
- Near the bottom of its 52-week range, 23% below the high. Falling prices usually have a reason; find it first.
- Current liabilities exceed current assets (ratio 0.93).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 60 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 71 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 72 |
| Momentumhow the price has behaved lately | 25 |
| Stabilityhow violently it moves, what it owes and what it pays you | 67 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
Key numbers
| Price / earnings | 17.1× |
|---|---|
| Price / book | 9.05× |
| Price / sales | 1.8× |
| Revenue growth (YoY) | +5.6% |
| EPS growth (YoY) | +38.9% |
| Gross margin | 54% |
| Operating margin | 15% |
| Net margin | 11% |
| Return on equity | 50% |
| Debt / equity | 2.41× |
| Current ratio | 0.93 |
| Dividend yield | 2.99% |
| Beta | 0.33 |
| 52-week range | $127.98 – $171.48 |
| Position in that range | 7% of the way up |
| 3-month return | -8.8% |
| 1-year return | -8.6% |
Five years of financials, as filed
Pulled from PepsiCo's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $93.9B | $91.9B | $91.5B | $86.4B | $79.5B |
| Gross profit | $50.9B | $50.1B | $49.6B | $45.8B | $42.4B |
| Operating income | $11.5B | $12.9B | $12.0B | $11.5B | $11.2B |
| Net income | $8.2B | $9.6B | $9.1B | $8.9B | $7.6B |
| Operating cash flow | $12.1B | $12.5B | $13.4B | $10.8B | $11.6B |
| Capital expenditure | $4.4B | $5.3B | $5.5B | $5.2B | $4.6B |
| Total assets | $107B | $99.5B | $100B | $92.2B | $92.4B |
| Total liabilities | $86.9B | $81.3B | $81.9B | $74.9B | $76.2B |
| Shareholder equity | $20.4B | $18.0B | $18.5B | $17.1B | $16.0B |
| Cash | $9.2B | $8.5B | $9.7B | $5.0B | $5.6B |
| Long-term debt | $42.3B | $37.2B | $37.6B | $35.7B | $36.0B |
| Free cash flow | $7.7B | $7.2B | $7.9B | $5.6B | $7.0B |
| Gross margin | 54.1% | 54.6% | 54.2% | 53.0% | 53.3% |
| Operating margin | 12.2% | 14.0% | 13.1% | 13.3% | 14.0% |
| Net margin | 8.8% | 10.4% | 9.9% | 10.3% | 9.6% |
| Diluted shares | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B |
Share count is essentially flat over 4 years.
What PepsiCo says it does
When used in this report, the terms "we," "us," "our," "PepsiCo" and the "Company" mean PepsiCo, Inc. and its consolidated subsidiaries, collectively. Certain terms used in this Annual Report on Form 10-K are defined in the Glossary included in Item 7. of this report. Company Overview We were incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986. We are a leading global beverage and convenient food company with a complementary portfolio of brands, including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. Through our operations, authorized bottlers, contract manufacturers and other third parties, we make, market, distribute and sell a wide variety of beverages and convenient foods, serving customers and consumers in more than 200 countries and territories. Our Operations We are organized into six reportable segments, as follows: 1) PepsiCo Foods North America (PFNA), which…
Risk factors PEP lists in its 10-K
- Information About Our Executive Officers
- Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
- Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
- Risks Associated with Commodities and Our Supply Chain
- Risks Associated with Climate Change
- Risks Associated with International Operations
- Imposition of Taxes and Regulations on our Products
- Results of Operations — Consolidated Review
- Consolidated Net Revenue and Operating Profit
- Results of Operations — Segment Review
- Net Revenue and Organic Revenue Performance
- Operating Profit, Operating Profit Adjusted for Items Affecting Comparability and Operating Profit Performance Adjusted for Items Affecting Comparability on a Constant Currency Basis
- Return on invested capital (ROIC) and net ROIC, excluding items affecting comparability
- Selling, general and administrative expenses