PEPSICO INC (PEP) Stock Analysis

Analysis from 10-Q filed 2025-10-09. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 14.3%. FCF margin 9.3%. D/E 2.3x. Source: 10-Q filed 2025-10-09.

Metric	Value	Context
ROIC	14.3%	Solid returns
FCF Margin	9.3%	Healthy cash flow
Debt/Equity	2.3x	Elevated debt

ROIC 14.3% — Top 25% of sector peers. FCF margin 9.3% — Top 50%.

Explore PEPSICO INC: Earnings History | Filings | ROIC Analysis

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_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: PEPSICO INC earns 14.3% ROIC, Top 25% in Consumer Staples

ROIC TTM 14.3%, sector median 5.8%, Top 25%. DuPont: NOPAT margin 10.3% × asset turnover 0.9x. Gross margin 54.1%. Operating margin 12.7%. Source: 10-Q filed 2025-10-09.

Metric	PEP	Rating	Context
Return on Invested Capital (ROIC)	14.3%	Good	Above sector median of 5.8%
Return on Equity (ROE)	44.7%	Excellent	Efficient use of shareholder equity
Gross Margin	54.1%	Excellent	Strong pricing power
Operating Margin	12.7%	Good	Moderate operational efficiency

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Cash Flow: PEPSICO INC generates $8.8B FCF at 9.3% margin, positive NaN/8 quarters

FCF TTM $8.8B. FCF margin 9.3%, Top 50%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-09.

Metric	PEP	Rating	Context
Free Cash Flow Margin	9.3%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$8.8B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: PEPSICO INC at 2.3x leverage

Debt/Equity 2.3x. Total debt $49.2B, cash & investments $10.9B. Source: 10-Q filed 2025-10-09.

Metric	PEP	Rating	Context
Debt to Equity	2.3x	Warning	Elevated leverage
Net Cash Position	$-38.3B	Warning	Net debt position

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Valuation: PEPSICO INC trades at 23.5x earnings

P/E 23.5x. EV/Sales 2.6x. FCF yield 4.3%. Dividend yield 3.8%. Source: 10-Q filed 2025-10-09.

Metric	PEP	Rating	Context
P/E Ratio	23.5x	Adequate	Premium valuation
EV/Sales	2.6x	Good	Attractive revenue multiple
FCF Yield	4.3%	Good	Lower cash yield
Dividend Yield	3.8%	Adequate	Meaningful income

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Capital Allocation: PEPSICO INC returns 4.2% shareholder yield

Total shareholder yield 4.2% (div 3.8% + buyback 0.5%). Capital returned $8.7B TTM. Source: 10-Q filed 2025-10-09.

Metric	PEP	Rating	Context
Total Shareholder Yield	4.2%	Good	Dividend + buyback yield combined
Buyback Yield	0.5%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$8.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	14.3%	Top 25%	2.5x above
Free Cash Flow Margin	9.3%	Top 50%	1.6x above
Gross Margin	54.1%	Top 10%	1.8x above
Operating Margin	12.7%	Top 25%	2.0x above
Return on Equity (ROE)	44.7%	Top 5%	6.1x above
P/E Ratio	23.5x	N/A	-

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Financial Scorecard

Metric	PEP	Rating	Sector Context
Return on Invested Capital (ROIC)	14.3%	Good	Top 25% of sector (median: 5.8%)
Free Cash Flow Margin	9.3%	Adequate	Top 50% of sector (median: 5.7%)
Gross Margin	54.1%	Excellent	Top 10% of sector (median: 29.3%)
Debt to Equity Ratio	230.0%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	23.5x	Adequate	Fair value
Free Cash Flow Yield	4.3%	Adequate	Moderate yield

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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 14.3%. Sector median 5.8%. Source: 10-Q filed 2025-10-09.

Q: What is PEPSICO INC's Free Cash Flow Margin?

PEPSICO INC (PEP) has a free cash flow margin of 9.3%, generating $8.8 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-09.

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 23.5x, which is above the sector median of N/A. EV/Sales 2.6x. FCF yield 4.3%. Source: 10-Q filed 2025-10-09.

Q: Does PEPSICO INC pay a dividend?

PEPSICO INC (PEP) currently pays a dividend yield of 3.8%. Total shareholder yield (dividend + buybacks) 4.2%. Source: 10-Q filed 2025-10-09.

Q: How much debt does PEPSICO INC have?

PEPSICO INC (PEP) has a debt-to-equity ratio of 2.3x with total debt of $49.2 billion. Net debt $38.3 billion. Source: 10-Q filed 2025-10-09.

Q: What is PEPSICO INC's revenue and earnings growth?

PEPSICO INC (PEP) grew revenue by 4.3% year-over-year. EPS -6.5% YoY. Source: 10-Q filed 2025-10-09.

Q: Is PEPSICO INC buying back stock?

PEPSICO INC (PEP) repurchased $999.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.5%. Source: 10-Q filed 2025-10-09.

Q: How does PEPSICO INC compare to competitors in Consumer Staples?

Compared to other companies in Consumer Staples, PEPSICO INC (PEP) shows: ROIC 14.3%, sector median 5.8% (Top 25%). FCF margin 9.3%, sector median 5.7% (Top 50%). Gross margin 54.1%, 24.7pp 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) ROIC declining -4.3% over 8 quarters; 2) debt/equity 2.3x (above 1.5x threshold). Source: 10-Q filed 2025-10-09.

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Data Source: Data sourced from 10-Q filed 2025-10-09. TTM metrics as of Q1 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.