PEP

PEPSICO INC

Consumer Staples • CIK: 0000077476

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Market Cap
$205.30B
P/E (TTM)
23.5x
Rev Growth (TTM)
+4.3%
Net Margin (TTM)
9.1%
FCF Yield (TTM)
4.3%
FCF Margin (TTM)
9.3%

LATEST EARNINGS

Q1 2026
about 1 month ago
View source
Revenue
$19.44B
+8.5%
Net Income
$2.34B
EPS
$1.70
+27.0%
Gross
55.2% -0.6%
Operating
16.5% +2.1%
Net
12.0% +1.7%
  • Net revenue increased 8.5% to $19,443 million, accelerating from prior periods.
  • Organic revenue increased 2.6%, reflecting benefits from effective net pricing and slight organic volume growth.
  • Operating profit increased 24% to $3,213 million, with operating margin expanding 210 basis points to 16.5%.
  • EPS increased 27% to $1.70, and core EPS increased 9% to $1.61.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$8.8B
Q1 '26
$-406M-109%
Q4 '26
$4.7B+35%
FCF Margin
TTM9.3%
Q1 '26-2.1%-113%
Sector: 5.2%Above Avg
OCF Margin13.7%
OCF/NI1.50x
CapEx Coverage3.1x
FCF Yield4.3%
FCF Growth (2Y)+18%
Cash Conversion Cycle
51 days
DSO: 0+DIO: 51DPO: 0

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM4.2%
Div Yield3.8%
+
Buyback (TTM)0.5%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)3.8%
FCF Payout Ratio87.3%
Free Cash Flow (TTM)$8.8B
Stock Repurchases (TTM)$999.0M
Capital Return / FCF98.6%
Est. Dividends Paid (TTM)$7.7B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
14.3%
Stable
-0.0% YoY-4.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
10.3%
8Q: 11.5%
Asset Turnover
0.90x
8Q: 0.90x
Leverage (1+D/E)
3.30x
D/E: 2.30x
DuPont: 30.4%14.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.27x
8Q:3.33x
-33.1%
Invested Cap Turn
2.13x
8Q:2.21x
-26.3%
CapEx Intensity
9.5%
8Q:9.9%
CapEx/Depreciation
1.21x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2026Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024
Revenue
$95.4B
$19.4B33.7%
$29.3B22.6%
$23.9B5.3%
$22.7B26.8%
$17.9B35.5%
$27.8B19.1%
$23.3B3.6%
$22.5B
Operating Income
$12.1B
$3.2B9.7%
$3.6B0.3%
$3.6B99.5%
$1.8B30.7%
$2.6B14.8%
$2.3B41.9%
$3.9B4.3%
$4.0B
Net Income
$8.7B
$2.3B8.4%
$2.5B2.4%
$2.6B106.1%
$1.3B31.1%
$1.8B20.4%
$1.5B48.0%
$2.9B5.0%
$3.1B
Operating Cash Flow
$13.1B
$41.0M99.4%
$6.6B48.0%
$4.5B127.1%
$2.0B302.4%
$-973.0M115.5%
$6.3B28.2%
$4.9B108.2%
$2.4B
Free Cash Flow
$8.8B
$-406.0M108.6%
$4.7B35.1%
$3.5B226.8%
$1.1B167.6%
$-1.6B141.3%
$3.8B1.7%
$3.8B196.0%
$1.3B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
23.5x
Volatile
8Q: 85.8x-596%
Valuation Lenses
Earnings
23.5x
vs sector
Cash Flow
27.8x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
1.6P/E per %ROIC
ROIC: 14.3%
Shareholder Returns
Dividend
3.8%
Buyback
0.5%
Total Yield
4.2%
Market Cap$205.30B
EV$245.39B
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%
44.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
14.3%
8Q:
-4.3%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 10.3%
Asset Turnover: 0.90x

Earnings Quality

Cash Conversion

1.50x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin54.1%

Capital Efficiency

Invested Capital Turnover2.13x

Working Capital

Cash Conversion Cycle51 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
63/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
4.3%
OpInc Growth YoY
24.4%
EPS Growth YoY
-6.5%
FCF 3Y CAGR
18.4%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
54.1%
Operating
12.7%
Top 25% in sector
Net
9.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+0.1 pts
FCF: 9.3% | Net: 9.1%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
Net Debt: $38.27B
Interest Coverage
Leverage Metrics
Debt-to-Equity
2.30x
Balance sheet risk & solvency analysis