PEPSICO INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. PEPSICO INC has weak liquidity. Currently, the Quick Ratio is 0.96 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 41.65% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||16331.0||17218.0|
|Net Income ($mil)||533.0||2008.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||10679.0||12906.0|
|Total Assets ($mil)||69902.0||80466.0|
|Total Debt ($mil)||31843.0||32742.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||58.09||57.11|
|Return on Assets||7.21||8.62|
|Return on Equity||37.46||30.09|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||1462.0||1503.0|
|Div / share||0.7||0.66|
|Book value / share||9.21||15.35|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5027495.0||4490809.0|
BUY. PEPSICO INC's P/E ratio indicates a premium compared to an average of 27.76 for the Beverages industry and a premium compared to the S&P 500 average of 21.93. For additional comparison, its price-to-book ratio of 10.96 indicates a significant premium versus the S&P 500 average of 2.77 and a significant premium versus the industry average of 7.52. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, PEPSICO INC proves to trade at a premium to investment alternatives within the industry.
|PEP 29.95||Peers 27.76||PEP 13.94||Peers 22.13|
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.
|PEP 20.87||Peers 24.92||PEP 4.41||Peers 2.53|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
PEP is trading at a discount to 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 10.96||Peers 7.52||PEP -25.45||Peers -10.46|
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.
|PEP 2.29||Peers 4.40||PEP -3.65||Peers -4.19|
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
Select the service that is right for you!COMPARE ALL SERVICES
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas