PepsiCo Inc.Find Ratings Reports
PEPSICO INC's gross profit margin for the second quarter of its fiscal year 2019 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. PEPSICO INC has weak liquidity. Currently, the Quick Ratio is 0.61 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 37.98% 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||Q2 FY19||Q2 FY18|
|Net Sales ($mil)||16449.0||16090.0|
|Net Income ($mil)||2035.0||1820.0|
|Balance Sheet||Q2 FY19||Q2 FY18|
|Cash & Equiv. ($mil)||3734.0||18129.0|
|Total Assets ($mil)||75084.0||78731.0|
|Total Debt ($mil)||32656.0||40593.0|
|Profitability||Q2 FY19||Q2 FY18|
|Gross Profit Margin||59.0||58.43|
|Return on Assets||17.04||5.83|
|Return on Equity||91.74||45.46|
|Debt||Q2 FY19||Q2 FY18|
|Share Data||Q2 FY19||Q2 FY18|
|Shares outstanding (mil)||1399.0||1415.0|
|Div / share||0.96||0.93|
|Book value / share||9.97||7.15|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4462634.0||4614354.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 22.34 for the Beverage and Tobacco Product Manufacturing subsector and a discount compared to the S&P 500 average of 21.19. For additional comparison, its price-to-book ratio of 13.11 indicates a significant premium versus the S&P 500 average of 3.21 and a significant premium versus the subsector average of 7.64. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. The valuation analysis reveals that, PEPSICO INC seems to be trading at a discount to investment alternatives.
|PEP 14.49||Peers 25.87||PEP 18.93||Peers 18.97|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
PEP is trading at a significant discount to its peers.
Average. 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 valuation on par to its peers.
|PEP 21.86||Peers 23.36||PEP NM||Peers 2.76|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations.
PEP is trading at a valuation on par with its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|PEP 13.11||Peers 7.64||PEP 180.99||Peers 74.63|
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 2.80||Peers 4.60||PEP 1.43||Peers -0.75|
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.
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
PEP has a sales growth rate that significantly exceeds its peers.