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PepsiCo Inc
PEP : NYSE : Consumer Goods

$85.41 0.27 | 0.32%
Today's Range: 85.06 - 85.70
Avg. Daily Volume: 6,360,900
04/23/14 - 4:01 PM ET

Financial Analysis


PEPSICO INC's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. PEPSICO INC has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 8.90% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)20118.019954.0
EBITDA ($mil)3373.03363.0
EBIT ($mil)2525.02511.0
Net Income ($mil)1742.01661.0


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)9678.06619.0
Total Assets ($mil)77478.074638.0
Total Debt ($mil)29639.028359.0
Equity ($mil)24279.022294.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin56.555.7
EBITDA Margin16.7616.85
Operating Margin12.5512.58
Sales Turnover0.860.88
Return on Assets8.698.27
Return on Equity27.7527.7
Debt Q4 FY13 Q4 FY12
Current Ratio1.241.1
Debt/Capital0.550.56
Interest Expense269.0283.0
Interest Coverage9.398.87


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)1529.01544.0
Div / share0.570.54
EPS1.121.06
Book value / share15.8814.44
Institutional Own % n/a n/a
Avg Daily Volume6171536.04402563.0

Valuation


BUY. PEPSICO INC's P/E ratio indicates a discount compared to an average of 20.84 for the Beverages industry and a value on par with the S&P 500 average of 18.59. Conducting a second comparison, its price-to-book ratio of 5.34 indicates a significant premium versus the S&P 500 average of 2.56 and a premium versus the industry average of 5.26. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, PEPSICO INC seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PEP 19.62 Peers 20.84   PEP 13.38 Peers 18.01

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

PEP is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PEP is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PEP 17.32 Peers 20.46   PEP 4.25 Peers 2.37

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

PEP is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

PEP trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PEP 5.34 Peers 5.26   PEP 10.20 Peers 40.14

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PEP is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, PEP is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PEP 1.95 Peers 4.17   PEP 1.40 Peers 3.90

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PEP is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PEP significantly trails its peers on the basis of sales growth

 

 

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