PepsiCo Inc.
Find Ratings ReportsPEPSICO INC's gross profit margin for the fourth quarter of its fiscal year 2023 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 0.66 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.89% 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 FY23 | Q4 FY22 |
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Net Sales ($mil) | 27850.0 | 27996.0 |
EBITDA ($mil) | 3942.0 | 3733.0 |
EBIT ($mil) | 3126.0 | 2824.0 |
Net Income ($mil) | 1302.0 | 518.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 10003.0 | 5348.0 |
Total Assets ($mil) | 100495.0 | 92187.0 |
Total Debt ($mil) | 47061.0 | 41487.0 |
Equity ($mil) | 18503.0 | 17149.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 56.4 | 55.58 |
EBITDA Margin | 14.15 | 13.33 |
Operating Margin | 11.22 | 10.09 |
Sales Turnover | 0.91 | 0.94 |
Return on Assets | 9.02 | 9.66 |
Return on Equity | 49.04 | 51.96 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.85 | 0.8 |
Debt/Capital | 0.72 | 0.71 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 1374.0 | 1377.0 |
Div / share | 1.27 | 1.15 |
EPS | 0.94 | 0.37 |
Book value / share | 13.47 | 12.45 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 5614703.0 | 5709985.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 22.25 for the Beverage and Tobacco Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 12.24 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 7.67. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, PEPSICO INC proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PEP 25.08 | Peers 22.25 | PEP 16.84 | Peers 19.91 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. PEP is trading at a premium 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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PEP 18.68 | Peers 16.98 | PEP 1.04 | Peers 1.14 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. PEP is trading at a premium to its peers. |
Average. 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 valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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PEP 12.24 | Peers 7.67 | PEP 2.49 | Peers 357.05 | |||||||||||||||||||||
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. |
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. |
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Price/Sales |
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Sales Growth |
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PEP 2.48 | Peers 3.77 | PEP 5.87 | Peers 9.01 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. PEP significantly trails its peers on the basis of sales growth. |
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