PEP

PEPSICO INC

Consumer StaplesCIK 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%

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LATEST EARNINGS

Q1 2026
3 months 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: 4.8%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
1.19x
Asset-based ROIC formula

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$245.45B
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: $38.35B
Interest Coverage
Leverage Metrics
Debt-to-Equity
2.30x
Balance sheet risk & solvency analysis