Is PepsiCo Stock a Good Investment?
PepsiCo Investment Advice | PEP |
- Examine PepsiCo's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research PepsiCo's leadership team and their track record. Good management can help PepsiCo navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Soft Drinks & Non-alcoholic Beverages space and any emerging trends that could impact PepsiCo's business and its evolving consumer preferences.
- Compare PepsiCo's performance and market position to its competitors. Analyze how PepsiCo is positioned in terms of product offerings, innovation, and market share.
- Check if PepsiCo pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about PepsiCo's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in PepsiCo stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if PepsiCo is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine PepsiCo Stock
Researching PepsiCo's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 78.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.94. PepsiCo recorded earning per share (EPS) of 6.79. The entity last dividend was issued on the 6th of December 2024. The firm had 2:1 split on the 29th of May 1996.
To determine if PepsiCo is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding PepsiCo's research are outlined below:
| PepsiCo generated a negative expected return over the last 90 days | |
| PepsiCo has 44.66 B in debt with debt to equity (D/E) ratio of 2.05, meaning that the company heavily relies on borrowing funds for operations. PepsiCo has a current ratio of 0.9, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for PepsiCo to invest in growth at high rates of return. | |
| PepsiCo has a strong financial position based on the latest SEC filings | |
| Over 78.0% of PepsiCo shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: FORA Capital LLC Buys 313 Shares of PepsiCo, Inc. |
PepsiCo Quarterly Cost Of Revenue |
|
PepsiCo uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in PepsiCo. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to PepsiCo's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 9th of February 2024 Upcoming Quarterly Report | View | |
| 23rd of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 9th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact PepsiCo's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises PepsiCo's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1997-04-29 | 1997-03-31 | 0.24 | 0.27 | 0.03 | 12 | ||
2014-04-17 | 2014-03-31 | 0.75 | 0.83 | 0.08 | 10 | ||
1997-02-04 | 1996-12-31 | 0.33 | 0.24 | -0.09 | 27 | ||
2013-07-24 | 2013-06-30 | 1.19 | 1.31 | 0.12 | 10 | ||
2020-10-01 | 2020-09-30 | 1.49 | 1.66 | 0.17 | 11 | ||
2021-07-13 | 2021-06-30 | 1.53 | 1.72 | 0.19 | 12 |
Know PepsiCo's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as PepsiCo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading PepsiCo backward and forwards among themselves. PepsiCo's institutional investor refers to the entity that pools money to purchase PepsiCo's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Legal & General Group Plc | 2024-06-30 | 13.5 M | Franklin Resources Inc | 2024-09-30 | 13 M | Wells Fargo & Co | 2024-06-30 | 12.6 M | Wellington Management Company Llp | 2024-06-30 | 11.8 M | Capital Research Global Investors | 2024-09-30 | 11.2 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 10.9 M | Amvescap Plc. | 2024-06-30 | 10.5 M | Massachusetts Financial Services Company | 2024-09-30 | 10.4 M | Goldman Sachs Group Inc | 2024-06-30 | 10.2 M | Vanguard Group Inc | 2024-09-30 | 132 M | Blackrock Inc | 2024-06-30 | 109.2 M |
PepsiCo's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 224.25 B.Market Cap |
|
PepsiCo's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.14 | 0.11 | |
| Return On Capital Employed | 0.16 | 0.15 | |
| Return On Assets | 0.09 | 0.08 | |
| Return On Equity | 0.47 | 0.27 |
Determining PepsiCo's profitability involves analyzing its financial statements and using various financial metrics to determine if PepsiCo is a good buy. For example, gross profit margin measures PepsiCo's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of PepsiCo's profitability and make more informed investment decisions.
PepsiCo's Earnings Breakdown by Geography
Evaluate PepsiCo's management efficiency
PepsiCo has Return on Asset of 0.0872 % which means that on every $100 spent on assets, it made $0.0872 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4882 %, implying that it generated $0.4882 on every 100 dollars invested. PepsiCo's management efficiency ratios could be used to measure how well PepsiCo manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/30/2024, Return On Tangible Assets is likely to drop to 0.11. In addition to that, Return On Capital Employed is likely to drop to 0.15. At this time, PepsiCo's Total Current Liabilities is relatively stable compared to the past year. As of 11/30/2024, Liabilities And Stockholders Equity is likely to grow to about 105.5 B, while Non Current Liabilities Other is likely to drop slightly above 8.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 11.27 | 5.89 | |
| Tangible Book Value Per Share | (13.76) | (13.07) | |
| Enterprise Value Over EBITDA | 17.90 | 10.31 | |
| Price Book Value Ratio | 13.08 | 13.74 | |
| Enterprise Value Multiple | 17.90 | 10.31 | |
| Price Fair Value | 13.08 | 13.74 | |
| Enterprise Value | 113.8 B | 119.5 B |
PepsiCo benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0333 | Forward Dividend Yield 0.0333 | Forward Dividend Rate 5.42 | Beta 0.542 |
Basic technical analysis of PepsiCo Stock
As of the 30th of November, PepsiCo holds the Coefficient Of Variation of (1,235), variance of 0.9264, and Risk Adjusted Performance of (0.06). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of PepsiCo, as well as the relationship between them.PepsiCo's Outstanding Corporate Bonds
PepsiCo issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. PepsiCo uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most PepsiCo bonds can be classified according to their maturity, which is the date when PepsiCo has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| PEPSICO INC 36 Corp BondUS713448CC02 | View | |
| PEPSICO INC 4 Corp BondUS713448BZ06 | View | |
| US713448BS62 Corp BondUS713448BS62 | View | |
| PEPSICO INC 55 Corp BondUS713448BP24 | View | |
| PEPSICO INC 285 Corp BondUS713448DF24 | View | |
| PEPSICO INC 445 Corp BondUS713448DD75 | View | |
| PEPSICO INC 35 Corp BondUS713448CY22 | View | |
| PEPSICO INC 275 Corp BondUS713448CT37 | View |
Understand PepsiCo's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing PepsiCo's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (5.04) | |||
| Mean Deviation | 0.6871 | |||
| Coefficient Of Variation | (1,235) | |||
| Standard Deviation | 0.9625 | |||
| Variance | 0.9264 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (5.05) | |||
| Maximum Drawdown | 6.65 | |||
| Value At Risk | (1.38) | |||
| Potential Upside | 1.24 | |||
| Skewness | (0.69) | |||
| Kurtosis | 3.76 |
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (5.04) | |||
| Mean Deviation | 0.6871 | |||
| Coefficient Of Variation | (1,235) | |||
| Standard Deviation | 0.9625 | |||
| Variance | 0.9264 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (5.05) | |||
| Maximum Drawdown | 6.65 | |||
| Value At Risk | (1.38) | |||
| Potential Upside | 1.24 | |||
| Skewness | (0.69) | |||
| Kurtosis | 3.76 |
Consider PepsiCo's intraday indicators
PepsiCo intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of PepsiCo stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
PepsiCo Corporate Filings
10Q | 8th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
F4 | 3rd of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 20th of September 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
FWP | 16th of July 2024 A written communication used by offering participants to offer securities to the public or to solicit securities transactions. | ViewVerify |
PepsiCo Stock media impact
Far too much social signal, news, headlines, and media speculation about PepsiCo that are available to investors today. That information is available publicly through PepsiCo media outlets and privately through word of mouth or via PepsiCo internal channels. However, regardless of the origin, that massive amount of PepsiCo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of PepsiCo news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of PepsiCo relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to PepsiCo's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive PepsiCo alpha.
PepsiCo Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards PepsiCo can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
PepsiCo Historical Investor Sentiment
Investor biases related to PepsiCo's public news can be used to forecast risks associated with an investment in PepsiCo. The trend in average sentiment can be used to explain how an investor holding PepsiCo can time the market purely based on public headlines and social activities around PepsiCo. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
PepsiCo's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for PepsiCo and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average PepsiCo news discussions. The higher the estimate score, the more favorable the investor's outlook on PepsiCo.
PepsiCo Corporate Executives
Elected by the shareholders, the PepsiCo's board of directors comprises two types of representatives: PepsiCo inside directors who are chosen from within the company, and outside directors, selected externally and held independent of PepsiCo. The board's role is to monitor PepsiCo's management team and ensure that shareholders' interests are well served. PepsiCo's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, PepsiCo's outside directors are responsible for providing unbiased perspectives on the board's policies.
| James Caulfield | Executive CFO | Profile | |
| Gregg Roden | Executive COO | Profile |
Additional Tools for PepsiCo Stock Analysis
When running PepsiCo's price analysis, check to measure PepsiCo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PepsiCo is operating at the current time. Most of PepsiCo's value examination focuses on studying past and present price action to predict the probability of PepsiCo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PepsiCo's price. Additionally, you may evaluate how the addition of PepsiCo to your portfolios can decrease your overall portfolio volatility.