PEPSICO INC (PEP) Factsheet
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PEPSICO INC (PEP) Stock Analysis
Analysis from 10-Q filed 2026-10-08. Data as of Q3 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 16.3%. FCF margin 10.7%. D/E 2.3x. Source: 10-Q filed 2026-10-08.
| Metric | Value | Context |
|---|---|---|
| ROIC | 16.3% | Solid returns |
| FCF Margin | 10.7% | Healthy cash flow |
| Debt/Equity | 2.3x | Elevated debt |
ROIC 16.3% — Top 25% of sector peers. FCF margin 10.7% — Top 25%.
Explore PEPSICO INC: Earnings History | Overview
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for PEP: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.
Profitability: PEPSICO INC earns 16.3% ROIC, Top 25% in Consumer Staples
ROIC TTM 16.3%, sector median 6.2%, Top 25%. DuPont: NOPAT margin 12.2% × asset turnover 0.9x. Gross margin 54.2%. Operating margin 15.3%. Source: 10-Q filed 2026-10-08.
| Metric | PEP | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.3% | Good | Above sector median of 6.2% |
| Return on Equity (ROE) | 51.4% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 54.2% | Excellent | Strong pricing power |
| Operating Margin | 15.3% | Good | Efficient operations |
Cash Flow: PEPSICO INC generates $10.5B FCF at 10.7% margin, positive NaN/8 quarters
FCF TTM $10.5B. FCF margin 10.7%, Top 25%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-10-08.
| Metric | PEP | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 10.7% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $10.5B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: PEPSICO INC at 2.3x leverage, 13.6x interest coverage
Debt/Equity 2.3x. Total debt $51.9B, cash & investments $11.2B. Interest coverage 13.6x. Source: 10-Q filed 2026-10-08.
| Metric | PEP | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.3x | Warning | Elevated leverage |
| Net Cash Position | $-40.7B | Warning | Net debt position |
| Interest Coverage | 13.6x | Excellent | Comfortable debt service |
Valuation: PEPSICO INC trades at 17.8x earnings
P/E 17.8x. EV/Sales 2.4x. FCF yield 5.4%. Dividend yield 4.1%. Source: 10-Q filed 2026-10-08.
| Metric | PEP | Rating | Context |
|---|---|---|---|
| P/E Ratio | 17.8x | Adequate | Reasonable valuation |
| EV/Sales | 2.4x | Good | Attractive revenue multiple |
| FCF Yield | 5.4% | Good | Attractive cash return |
| Dividend Yield | 4.1% | Good | Meaningful income |
Capital Allocation: PEPSICO INC returns 4.6% shareholder yield, reducing shares 0.3% YoY
Total shareholder yield 4.6% (div 4.1% + buyback 0.5%). Share count -0.3% YoY. Capital returned $8.9B TTM. Source: 10-Q filed 2026-10-08.
| Metric | PEP | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.6% | Good | Dividend + buyback yield combined |
| Buyback Yield | 0.5% | Adequate | Minimal buyback activity |
| Share Count Change (YoY) | -0.3% | Adequate | Net share reduction (accretive) |
| Total Capital Returned (TTM) | $8.9B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.3% | Top 25% | 2.6x above |
| Free Cash Flow Margin | 10.7% | Top 25% | 1.7x above |
| Gross Margin | 54.2% | Top 10% | 1.9x above |
| Operating Margin | 15.3% | Top 25% | 3.2x above |
| Return on Equity (ROE) | 51.4% | Top 5% | 5.9x above |
| P/E Ratio | 17.8x | N/A | - |
Financial Scorecard
| Metric | PEP | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.3% | Good | Top 25% of sector (median: 6.2%) |
| Free Cash Flow Margin | 10.7% | Good | Top 25% of sector (median: 6.1%) |
| Gross Margin | 54.2% | Excellent | Top 10% of sector (median: 28.8%) |
| Debt to Equity Ratio | 232.7% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 17.8x | Adequate | Fair value |
| Free Cash Flow Yield | 5.4% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is PEPSICO INC's Return on Invested Capital (ROIC)?
PEPSICO INC (PEP) has a trailing twelve-month Return on Invested Capital (ROIC) of 16.3%. The 8-quarter median ROIC is 14.7% with a improving trend. Sector median 6.2%. Source: 10-Q filed 2026-10-08.
Q: What is PEPSICO INC's Free Cash Flow Margin?
PEPSICO INC (PEP) has a free cash flow margin of 10.7%, generating $10.5 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-10-08.
Q: What is PEPSICO INC's P/E ratio and how does it compare to peers?
PEPSICO INC (PEP) trades at a P/E ratio of 17.8x, which is above the sector median of N/A. EV/Sales 2.4x. FCF yield 5.4%. Source: 10-Q filed 2026-10-08.
Q: Does PEPSICO INC pay a dividend?
PEPSICO INC (PEP) currently pays a dividend yield of 4.1%. Total shareholder yield (dividend + buybacks) 4.6%. Source: 10-Q filed 2026-10-08.
Q: How much debt does PEPSICO INC have?
PEPSICO INC (PEP) has a debt-to-equity ratio of 2.3x with total debt of $51.9 billion. Interest coverage 13.6x. Net debt $40.7 billion. Source: 10-Q filed 2026-10-08.
Q: What is PEPSICO INC's revenue and earnings growth?
PEPSICO INC (PEP) grew revenue by 6.4% year-over-year. EPS +51.3% YoY. Source: 10-Q filed 2026-10-08.
Q: Is PEPSICO INC buying back stock?
PEPSICO INC (PEP) repurchased $987.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.5%. Share count -0.3% YoY. Source: 10-Q filed 2026-10-08.
Q: How does PEPSICO INC compare to competitors in Consumer Staples?
Compared to other companies in Consumer Staples, PEPSICO INC (PEP) shows: ROIC 16.3%, sector median 6.2% (Top 25%). FCF margin 10.7%, sector median 6.1% (Top 25%). Gross margin 54.2%, 25.3pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Staples companies with available SEC filings.
Q: What warning signs should I watch for with PEPSICO INC?
Quantitative warning flags for PEPSICO INC (PEP): 1) debt/equity 2.3x (above 1.5x threshold). Source: 10-Q filed 2026-10-08.
Data Source: Data sourced from 10-Q filed 2026-10-08. TTM metrics as of Q3 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.
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