PepsiCo, Inc.Find Ratings Reports
PEPSICO INC's gross profit margin for the second quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. PEPSICO INC has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 22.48% 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 FY21||Q2 FY20|
|Net Sales ($mil)||19217.0||15945.0|
|Net Income ($mil)||2358.0||1646.0|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||5777.0||9123.0|
|Total Assets ($mil)||92385.0||89525.0|
|Total Debt ($mil)||42298.0||44978.0|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||57.2||59.37|
|Return on Assets||8.88||7.65|
|Return on Equity||53.65||54.84|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||1382.0||1385.0|
|Div / share||1.08||1.02|
|Book value / share||11.07||9.02|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4945493.0||5857733.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 36.18 for the Beverage and Tobacco Product Manufacturing subsector and a discount compared to the S&P 500 average of 34.07. For additional comparison, its price-to-book ratio of 14.02 indicates a significant premium versus the S&P 500 average of 4.54 and a significant premium versus the subsector average of 10.65. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. The valuation analysis reveals that, PEPSICO INC seems to be trading at a discount to investment alternatives.
|PEP 26.21||Peers 43.66||PEP 18.63||Peers 22.09|
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.
|PEP 23.16||Peers 27.47||PEP 1.21||Peers 1.14|
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.
Average. 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 valuation on par to its peers.
|PEP 14.02||Peers 10.65||PEP 21.06||Peers 148.08|
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 2.88||Peers 5.08||PEP 10.24||Peers 1.87|
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.