NEW YORK (TheStreet) -- PepsiCo Inc. (PEP - Get Report) was asked by the government of India to help feed the nation's school children by developing healthy processed foods, which will be included in school lunches, Bloomberg reports.
PepsiCo is the largest snack maker in the world and is mostly known for items like Lays Potato Chips, Pepsi and 7Up, Gatorade, Naked Juice, and Quaker products.
India's government has allocated $2.2 billion to fund the healthy foods program through March 2015, Bloomberg added.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has slightly increased to $2,491.00 million or 7.69% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.52%.
- PEPSICO INC reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PEPSICO INC increased its bottom line by earning $4.32 versus $3.92 in the prior year. This year, the market expects an improvement in earnings ($4.59 versus $4.32).
- The gross profit margin for PEPSICO INC is rather high; currently it is at 57.56%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.70% trails the industry average.
- You can view the full analysis from the report here: PEP Ratings Report