Stock Analysis
PepsiCo, Inc.PEP
P/E 16.47×· 5Y range 15.87–41.24×· bottom 1% of history
Sector: Consumer Defensive · Industry: Beverages
AnalystsHold30 analystsP/E 16.5× sits at the 1st percentile of its 5.086926762491444-year history.
Cash covers 19% of debt · FY 2025.
PMP Verdict
Mixed fundamentals, cheap valuation
Strengths
- Quality87
- Profitability85
Risks
- Growth30
Mixed business trading cheap — priced for skepticism.
Market context
+2.4% today· Z 1.9σ
Bull Case
- ✓Altman Z 3.3 — safe-zone balance sheet
- ✓ROE 53.4% — efficient capital deployment
- ✓Interest coverage 14.9× — debt well covered
- ✓P/E 16.5× at bottom 1% of 5-year history
What's happening with PEP
Profile
Strong valuation, moat, earnings quality and profitability; growth lags behind.
How is each axis scored?
- Valuation90/100 · Strong
- P/E vs own history (1th pct)25/25
- FCF yield (5.8%)20/25
- P/S (1.8x)25/25
- EV/EBIT (14.5x)20/25
- Growth30/100 · Weak
- Revenue CAGR (4.3%)6/25
- Net income CAGR (2.0%)6/25
- EPS CAGR 5Y (2.3%)6/25
- Fwd implied growth (11.3%)12/25
- Profitability85/100 · Strong
- ROIC (19.8%)20/25
- ROE (53.4%)25/25
- Net margin (11.1%)20/25
- Operating margin (15.3%)20/25
- Financial Health61/100 · Moderate
- Altman Z (3.34)25/25
- Current ratio (0.85)6/25
- Interest coverage (14.9x)25/25
- Net cash / debt (D/A 37%)5/25
- Quality87/100 · Strong
- Piotroski F (5/9)15/25
- Beneish M (-2.58)25/25
- FCF conversion (96%)22/25
- Margin stability (σ 3.1%)25/25
- Moat88/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (54.6%)20/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 7.6%)18/25
About PepsiCo, Inc.
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. Show more
The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 58% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US, but uses bottlers overseas for beverages. International markets made up 41% of total sales and 46% of operating profits before corporate expenses in 2025.
Headquarters: PURCHASE, NY · Employees: 306,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
90A+P/E (TTM)16.5xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 15.9x–41.2x · lowest in history
P/FCF16.3xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield5.8%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.0%–6.1% · highest in history
P/S (TTM)1.82xA
Grade A: CheapPrice / TTM Revenue (own statements) — vs own 5Y history: 1.7x–3.2x · 1st pct
EV/EBIT14.5xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 14.1x–34.7x · lowest in history
EV/Sales2.2xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E14.8xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio8.78xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio3.05D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield4.45%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio72.3%C
Grade C: HighDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
85AROIC19.8%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE53.4%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA9.9%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin11.1%A
Grade A: HighNet Income / Revenue
Operating Margin15.3%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin54.2%A
Grade A: PremiumGross Profit / Revenue
FCF Margin10.7%C
Grade C: AverageFCF / Revenue
True FCF Margin10.3%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
30DRevenue CAGR4.3%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR2.0%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)2.3%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth11.3%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-1.7%B
Grade B: FlatShare count change over 5Y
SBC / Net Income2.9%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.3%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
61BAltman Z-Score3.34A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.85xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.72xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage14.9xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment3.8yC
Grade C: AverageYears to repay net debt via FCF
Net Debt/EBIT2.6xC
Grade C: MedLeverage. <2x Low, >4x High
Debt/Equity2.41xD
Grade D: HighDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.19xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
87APiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.58A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion96.1%A
Grade A: StrongFCF / Net Income
Margin Stability3.1%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue4.2%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.89xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Bailey Jennifer Filed | Bailey Jennifer | Grant / award | +1.6K | |
Lewis Dave J Filed | Lewis Dave J | Grant / award | +1.6K | |
Diamond Susan M Filed | Diamond Susan M | Grant / award | +1.6K | |
Gibbs David W Filed | Gibbs David W | Grant / award | +1.6K | |
Conde Cesar Filed | Conde Cesar | Grant / award | +1.6K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
COOPER EDITH W Filed | COOPER EDITH W | Grant / award | +1.6K | |
Gass Michelle Filed | Gass Michelle | Grant / award | +1.6K | |
COOK IAN M Filed | COOK IAN M | Grant / award | +1.6K |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
88AROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)54.6%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor7.6%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$7.98
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$8.18
Cash & short-term investments per share (Finnhub)
Book Value / Share$16.34
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$49.18B
Total debt obligations (short + long term)
Cash & Equiv.$9.53B
Cash and short-term investments
Net Debt$39.65B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$20.41B
Shareholders' equity (book value)
Asset / Liability1.24xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$179.20B
Current Market Capitalization
Beta0.35B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Sep 2026 · Ratio snapshot Oct 17, 2026
Key Insights: PepsiCo, Inc. (PEP)
PEP is up 2.42% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for PepsiCo, Inc.. Altman Z-Score of 3.34 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.58 suggests a low likelihood of earnings manipulation.
- Takes ~3.8 years to repay net debt from free cash flow.
- At a valuation score of 90/100, PEP trades near the cheapest end of its own historical range (P/E 16.5).
- Return on equity of 53.4% is well above the market average.
- The stock currently yields 4.5% in dividends.
See how PEP ranks on the Capex Tracker — top 50 capital spenders compared.
Earnings
View earnings calendar →Recent Earnings Results
| Date | Time | EPS Est. | EPS Actual | Surprise | Rev Est. | Rev Actual |
|---|---|---|---|---|---|---|
| Oct 8, 2026 | After-Hrs | $2.32 | $2.34 | +0.9% | $25.2B | $25.3B |
Recent Market Moves
See all PEP moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 8 | Regular | 127.55 | +3.09% | 3.96 |
| Oct 8 | After-hours | 128.08 | +3.52% | 4.42 |
| Sep 22 | After-hours | 131.31 | +1.33% | 2.05 |
| Sep 18 | Regular | 129.99 | -2.75% | -2.92 |
| Sep 18 | After-hours | 129.92 | -2.80% | -2.98 |
Frequently Asked Questions about PEP
What is the current PepsiCo, Inc. (PEP) stock price?
PEP is trading at $131.49 at the last market close, up 2.42% on the session. PreMarketPrice tracks PEP pre-market, intraday and after-hours prices.
Is PEP stock a buy right now?
PreMarketPrice's quantitative model rates PepsiCo, Inc.'s financial health at 61/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is PEP stock overvalued?
PepsiCo, Inc. trades at a trailing P/E of 16.5 and our valuation score rates it 90/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does PepsiCo, Inc. report earnings?
No confirmed earnings date is currently scheduled for PEP. The Earnings section lists recent reports and updates as dates are announced.
What sector does PepsiCo, Inc. operate in?
PepsiCo, Inc. operates in the Consumer Defensive sector, within the Beverages industry. The Related Stocks section lists sector peers for comparison.
What does PepsiCo, Inc. do?
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others.
About PepsiCo, Inc. (PEP) Stock
PepsiCo, Inc. (PEP) is a US-listed stock operating in the Consumer Defensive sector, specifically the Beverages industry. As of the latest update, PepsiCo, Inc. is trading at $131.49, up 2.42% on the day with a market capitalization of $179.2 billion. The financial health score for PEP is 61/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for PEP stock.
PEP Stock Analysis & Key Metrics
On PreMarketPrice, you can track PepsiCo, Inc. (PEP) across multiple dimensions:
- Pre-market price & movement: Real-time PEP stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Earnings calendar: Upcoming and past earnings reports for PEP, including EPS estimates, actual results, and surprise percentages.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for PEP with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for PepsiCo, Inc. across multiple reporting periods.
- Financial health score: A composite score of 61/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for PEP.
- Sector peers: Compare PEP against 6 other consumer defensive stocks on key financial metrics.
Is PEP a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate PepsiCo, Inc. (PEP) as an investment. The financial health score of 61/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average. Earnings data reveals whether the company is meeting or beating analyst expectations.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.PepsiCo, Inc. (PEP) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.