PEPSICO INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. PEPSICO INC has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 30.31% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||12217.0||12623.0|
|Net Income ($mil)||1221.0||1216.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||8495.0||10086.0|
|Total Assets ($mil)||69625.0||77493.0|
|Total Debt ($mil)||30365.0||32072.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||59.38||58.52|
|Return on Assets||9.36||8.87|
|Return on Equity||41.06||30.21|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||1479.0||1519.0|
|Div / share||0.66||0.57|
|Book value / share||10.73||14.99|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4595688.0||4915208.0|
BUY. The current P/E ratio indicates a discount compared to an average of 25.42 for the Beverages industry and a premium compared to the S&P 500 average of 20.73. For additional comparison, its price-to-book ratio of 9.13 indicates a significant premium versus the S&P 500 average of 2.86 and a significant premium versus the industry average of 6.37. 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.
|PEP 22.84||Peers 25.42||PEP 13.76||Peers 17.61|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
PEP is trading at a discount to 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 discount to its peers.
|PEP 20.00||Peers 22.83||PEP 4.43||Peers 2.75|
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.
|PEP 9.13||Peers 6.37||PEP -2.95||Peers -19.05|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
PEP is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
PEP is expected to have an earnings growth rate that significantly exceeds its peers.
|PEP 2.19||Peers 4.17||PEP -0.28||Peers 1.82|
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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