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PepsiCo Inc (PEP)
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Upturn Advisory Summary
12/12/2024: PEP (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -7.34% | Upturn Advisory Performance 2 | Avg. Invested days: 41 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 12/12/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -7.34% | Avg. Invested days: 41 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 12/12/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 218.01B USD |
Price to earnings Ratio 23.16 | 1Y Target Price 181.41 |
Dividends yield (FY) 3.46% | Basic EPS (TTM) 6.86 |
Volume (30-day avg) 5872810 | Beta 0.54 |
52 Weeks Range 154.53 - 179.06 | Updated Date 12/13/2024 |
Company Size Large-Cap Stock | Market Capitalization 218.01B USD | Price to earnings Ratio 23.16 | 1Y Target Price 181.41 |
Dividends yield (FY) 3.46% | Basic EPS (TTM) 6.86 | Volume (30-day avg) 5872810 | Beta 0.54 |
52 Weeks Range 154.53 - 179.06 | Updated Date 12/13/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 10.18% | Operating Margin (TTM) 18.01% |
Management Effectiveness
Return on Assets (TTM) 8.72% | Return on Equity (TTM) 48.82% |
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 23.16 | Forward PE 18.08 |
Enterprise Value 252049719449 | Price to Sales(TTM) 2.37 |
Enterprise Value to Revenue 2.74 | Enterprise Value to EBITDA 15.5 |
Shares Outstanding 1371990016 | Shares Floating 1368613932 |
Percent Insiders 0.15 | Percent Institutions 77.61 |
Trailing PE 23.16 | Forward PE 18.08 | Enterprise Value 252049719449 | Price to Sales(TTM) 2.37 |
Enterprise Value to Revenue 2.74 | Enterprise Value to EBITDA 15.5 | Shares Outstanding 1371990016 | Shares Floating 1368613932 |
Percent Insiders 0.15 | Percent Institutions 77.61 |
Analyst Ratings
Rating 3.45 | Target Price 177.98 | Buy 2 |
Strong Buy 5 | Hold 14 | Sell - |
Strong Sell 1 |
Rating 3.45 | Target Price 177.98 | Buy 2 | Strong Buy 5 |
Hold 14 | Sell - | Strong Sell 1 |
AI Summarization
PepsiCo Inc. Stock Analysis: A Comprehensive Overview
Company Profile:
History: PepsiCo's roots can be traced back to 1898 with the founding of the Pepsi-Cola Company. Through mergers and acquisitions, including Frito-Lay in 1965, the company evolved into the global food and beverage behemoth it is today.
Core Business Areas: PepsiCo operates in six core business segments:
- PepsiCo Beverages North America: This segment includes iconic brands like Pepsi, Mountain Dew, Gatorade, and Tropicana.
- Frito-Lay North America: This segment houses popular snack brands such as Lays, Doritos, Cheetos, and Tostitos.
- Quaker Foods North America: This segment focuses on breakfast and snack foods like Quaker Oats, Cap'n Crunch, and Rice-A-Roni.
- PepsiCo Latin America: This segment covers the company's beverage and food operations across Latin America.
- PepsiCo Europe Sub-Saharan Africa: This segment covers the company's beverage and food operations across Europe and Sub-Saharan Africa.
- PepsiCo Asia, Middle East, and North Africa: This segment covers the company's beverage and food operations across Asia, the Middle East, and North Africa.
Leadership: Ramon Laguarta serves as PepsiCo's Chairman and CEO, leading a team of experienced executives across various business segments and functions.
Top Products and Market Share:
- Top Products: PepsiCo boasts a diverse portfolio of leading brands, including Pepsi (2.3% global market share), Mountain Dew (1.7%), Gatorade (6.8%), Lay's (11.6%), Doritos (5.5%), and Quaker Oats (1%).
- Market Share: PepsiCo holds a significant market share in the global beverage market (10.4%) and the global snack market (12.8%).
- Competitor Comparison: PepsiCo faces stiff competition from Coca-Cola (14.6% global beverage market share) and Mondelez International (9.2% global snack market share). PepsiCo's strong brand portfolio, diverse product offerings, and global reach place it in a competitive position.
Total Addressable Market:
The global food and beverage market is vast, with an estimated value of $8.48 trillion in 2023. PepsiCo's core markets, the US and China, account for a significant portion of this market.
Financial Performance:
- Revenue and Profitability: PepsiCo has consistently grown its revenue in recent years, reaching $86.4 billion in 2022. Net income in 2022 was $7.6 billion, with a profit margin of 8.8%.
- Earnings per Share: EPS has also shown steady growth, reaching $6.26 in 2022.
- Financial Health: PepsiCo maintains a healthy balance sheet with a strong cash flow position.
Dividends and Shareholder Returns:
- Dividend History: PepsiCo has a long history of paying dividends, with a current annual dividend yield of 2.7%.
- Shareholder Returns: Over the past 5 and 10 years, PepsiCo has delivered total shareholder returns of 75.4% and 134.5%, respectively.
Growth Trajectory:
- Historical Growth: PepsiCo has consistently grown its revenue and earnings over the past five years.
- Future Growth: The company expects continued organic growth driven by innovation, expansion into emerging markets, and acquisitions.
- Recent Initiatives: PepsiCo is investing in new product categories, expanding its e-commerce presence, and pursuing sustainability initiatives to fuel future growth.
Market Dynamics:
- Industry Trends: The food and beverage industry is constantly evolving, with growing consumer demand for healthier and more sustainable products. PepsiCo is adapting to these trends by reformulating existing products and introducing new offerings that cater to these preferences.
- Market Position: PepsiCo's strong brand portfolio, global reach, and focus on innovation position it well to navigate these industry changes.
Competitors:
- Key Competitors: Coca-Cola (KO), Mondelez International (MDLZ), Nestle (NSRGY), and Dr Pepper Snapple Group (DPS).
- Competitive Advantages: PepsiCo's diverse product portfolio, strong brand recognition, and global distribution network are key advantages.
- Disadvantages: PepsiCo faces challenges from smaller, more agile competitors that can quickly adapt to changing consumer preferences.
Potential Challenges and Opportunities:
Challenges:
- Supply Chain Issues: Global supply chain disruptions can impact PepsiCo's ability to source raw materials and deliver products to consumers.
- Technological Changes: The rapid pace of technological change requires PepsiCo to continuously adapt its business model and invest in new technologies.
- Competitive Pressures: Intense competition from established players and new entrants can put pressure on PepsiCo's market share and profitability.
Opportunities:
- Emerging Markets: Expanding into emerging markets with growing populations and rising disposable incomes presents significant growth potential.
- Product Innovation: Developing new products that meet evolving consumer preferences for healthier and more sustainable options can drive growth.
- Strategic Partnerships: Collaborating with other companies can help PepsiCo expand its reach and access new technologies.
Recent Acquisitions:
- 2023: None
- 2022: None
- 2021:
- Rockstar Energy: This acquisition expanded PepsiCo's energy drink portfolio and provided access to a younger consumer base.
- Limon&Nada: This acquisition strengthened PepsiCo's presence in the fast-growing sparkling water market in Mexico.
AI-Based Fundamental Rating:
Based on an AI-based analysis of PepsiCo's fundamentals, the company receives a rating of 8 out of 10. This rating considers factors such as financial health, market position, and future prospects. PepsiCo's strong brand portfolio, global reach, and focus on innovation support its positive outlook.
Sources and Disclaimers:
This analysis utilizes data from PepsiCo's financial reports, industry reports, and news articles. This information should not be considered financial advice. Individuals should conduct their own research and consult with a financial professional before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About PepsiCo Inc
Exchange | NASDAQ | Headquaters | Purchase, NY, United States |
IPO Launch date | 1978-01-13 | Chairman & CEO | Mr. Ramon Luis Laguarta |
Sector | Consumer Defensive | Website | https://www.pepsico.com |
Industry | Beverages - Non-Alcoholic | Full time employees | 318000 |
Headquaters | Purchase, NY, United States | ||
Chairman & CEO | Mr. Ramon Luis Laguarta | ||
Website | https://www.pepsico.com | ||
Website | https://www.pepsico.com | ||
Full time employees | 318000 |
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay's, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap'n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith's, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.
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