PepsiCo Inc

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PEP : NYSE : Consumer Goods
$112.64 -0.69 | -0.61%
Today's Range: 112.51 - 113.44
Avg. Daily Volume: 3960500.0
04/27/17 - 4:04 PM ET

Financial Analysis

PEPSICO INC's gross profit margin for the first quarter of its fiscal year 2017 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 industry average, its revenue growth has not. PEPSICO INC has average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the 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 remained virtually unchanged only increasing by 4.12% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)12049.011862.0
EBITDA ($mil)2437.02504.0
EBIT ($mil)1960.02023.0
Net Income ($mil)1318.0931.0

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)15989.012144.0
Total Assets ($mil)74622.070019.0
Total Debt ($mil)38658.035086.0
Equity ($mil)11569.011111.0

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin59.9860.51
EBITDA Margin20.2221.1
Operating Margin16.2717.05
Sales Turnover0.840.9
Return on Assets9.07.37
Return on Equity58.0346.44
Debt Q1 FY17 Q1 FY16
Current Ratio1.251.42
Interest Expense252.0246.0
Interest Coverage7.788.22

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1430.01446.0
Div / share0.750.7
Book value / share8.097.68
Institutional Own % n/a n/a
Avg Daily Volume3956422.04414726.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 53.60 for the Beverages industry and a value on par with the S&P 500 average of 25.25. For additional comparison, its price-to-book ratio of 14.01 indicates a significant premium versus the S&P 500 average of 3.03 and a significant premium versus the industry average of 7.42. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, PEPSICO INC seems to be trading at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PEP 24.48 Peers 53.60   PEP 16.06 Peers 21.08

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.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PEP 20.38 Peers 23.83   PEP 1.37 Peers 1.62

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

PEP is trading at a valuation on par with its peers.


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PEP 14.01 Peers 7.42   PEP 32.28 Peers 3.53

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PEP 2.57 Peers 4.41   PEP 0.45 Peers 3.76

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



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