PEP
PEPSICO INC
Consumer Staples • CIK: 0000077476
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Market Cap
$196.90B
P/E (TTM)
23.9x
Rev Growth (TTM)
+2.3%
Net Margin (TTM)
8.8%
FCF Yield (TTM)
3.9%
FCF Margin (TTM)
8.2%
Filing Intelligence
6.0/10
10-K filed Feb 3, 2026 • FYNone
Executive Summary
Operating profit declined by 11% due to cost increases, brand impairments, lower volume, and higher acquisition costs, partially offset by productivity savings and net pricing.. Net revenue saw a 2%...
Key Concerns
- ●Operating profit declined by 11% due to cost increases, brand impairments, lower volume, and higher acquisition costs, partially offset by...
- ●Share-based compensation expense decreased significantly year-over-year, which may warrant further investigation into the reasons for the...
- ●The company is involved in litigation concerning plastic pollution, with potential for significant unquantified liabilities.
Cash Flow Health
Free Cash Flow6/8 positive
TTM$7.7B
Q4 '25
$4.7B+35%
Q3 '25
$3.5B+227%
FCF Margin
TTM8.2%
Q4 '2516.0%+10%
Sector: 5.7%Above Avg
OCF Margin12.9%
OCF/NI1.47x
CapEx Coverage2.7x
FCF Yield3.9%
FCF Growth (2Y)+11%
Cash Conversion Cycle
50 days
DSO: 0+DIO: 50−DPO: 0
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM4.4%
Div Yield3.9%
+Buyback (TTM)0.5%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)3.9%
FCF Payout Ratio100.4%
Free Cash Flow (TTM)$7.7B
Stock Repurchases (TTM)$1.0B
Capital Return / FCF112.6%
Est. Dividends Paid (TTM)$7.7B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
13.9%
Stable
-0.2% YoY-2.8%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
9.9%
Asset Turnover
0.90x
8Q: 0.90x
Leverage (1+D/E)
3.41x
D/E: 2.41x
DuPont: 30.5% ≈ 13.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.27x
8Q:3.33x
+54.1%
Invested Cap Turn
2.14x
8Q:2.21x
+37.6%
CapEx Intensity
10.1%
8Q:9.9%
CapEx/Depreciation
1.28x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $93.9B | $29.3B↑22.6% | $23.9B↑5.3% | $22.7B↑26.8% | $17.9B↓35.5% | $27.8B↑19.1% | $23.3B↑3.6% | $22.5B↑23.3% | $18.3B |
Operating Income | $11.5B | $3.6B↓0.3% | $3.6B↑99.5% | $1.8B↓30.7% | $2.6B↑14.8% | $2.3B↓41.9% | $3.9B↓4.3% | $4.0B↑49.0% | $2.7B |
Net Income | $8.2B | $2.5B↓2.4% | $2.6B↑106.1% | $1.3B↓31.1% | $1.8B↑20.4% | $1.5B↓48.0% | $2.9B↓5.0% | $3.1B↑51.0% | $2.0B |
Operating Cash Flow | $12.1B | $6.6B↑48.0% | $4.5B↑127.1% | $2.0B↑302.4% | $-973.0M↓115.5% | $6.3B↑28.2% | $4.9B↑108.2% | $2.4B↑326.3% | $-1.0B |
Free Cash Flow | $7.7B | $4.7B↑35.1% | $3.5B↑226.8% | $1.1B↑167.6% | $-1.6B↓141.3% | $3.8B↑1.7% | $3.8B↑196.0% | $1.3B↑176.7% | $-1.7B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
23.9x
Volatile
8Q: 95.9x-831%
Valuation Lenses
Earnings
23.9x
vs – sector
Cash Flow
30.8x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
1.7P/E per %ROIC
ROIC: 13.9%
Shareholder Returns
Dividend
3.9%
Buyback
0.5%
Total Yield
4.4%
Market Cap$196.90B
EV$236.27B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
94/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
43.7%
8Q:–
Return on Invested Capital (ROIC)Top 25%
13.9%
8Q:–
-2.8%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 9.9%
Asset Turnover: 0.90x
Earnings Quality
Cash Conversion
1.47x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin54.1%
Capital Efficiency
Invested Capital Turnover2.14x
Working Capital
Cash Conversion Cycle50 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
58/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
2.3%
OpInc Growth YoY
58.1%
EPS Growth YoY
-13.7%
FCF 3Y CAGR
11.0%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
High Quality
Profitability Cascade
Gross
54.1%
Operating
12.2%
Above Avg in sector
Net
8.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-0.6 pts
FCF: 8.2% | Net: 8.8%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Leveraged
Net Debt / EBITDA
–Net Debt: $39.61B
Interest Coverage
–
Balance sheet risk & solvency analysis