Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- PEP's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 2.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has increased to $2,313.00 million or 19.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.58%.
- The gross profit margin for PEPSICO INC is rather high; currently it is at 56.62%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PEP's net profit margin of 11.95% significantly trails the industry average.
PepsiCo, Inc. operates as a food and beverage company worldwide. PepsiCo has a market cap of $125.0 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 18.4% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.