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PepsiCo Inc
🇺🇸 PEP · NYSE/NASDAQ · US7134481081
Consumer
USD 142.69 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.4
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 142.69 ÷ 6.37 = 22.4
TTM period through: 2026-03-31
Forward P/E (estimated): 16.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 22.6
Net Debt/EBITDA (TTM)
2.6x
Latest quarter: 10.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 10.0x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
43.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
4.15%
TTM: 4.03%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 4.15%
Trailing Yield (TTM, last 12 months): 4.03%
Payout Ratio (Fwd)
92.8%
TTM: 88.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 92.8%
Payout (TTM): 88.3%
Cash Flow Payout (TTM): 58.9%
FCF Coverage (TTM): 1.15x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
6.9%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 05 Jun 2027 | — | USD | 1.48 |
| Forecast* | Quarterly | — | 06 Mar 2027 | — | USD | 1.423 |
| Forecast* | Quarterly | — | 05 Dec 2026 | — | USD | 1.423 |
| Forecast* | Quarterly | — | 05 Sep 2026 | — | USD | 1.423 |
| Paid | Quarterly | 06 May 2026 | 05 Jun 2026 | 30 Jun 2026 | USD | 1.48 |
| Paid | Quarterly | 04 Feb 2026 | 06 Mar 2026 | 31 Mar 2026 | USD | 1.423 |
| Paid | Quarterly | 19 Nov 2025 | 05 Dec 2025 | 06 Jan 2026 | USD | 1.423 |
| Paid | Quarterly | 24 Jul 2025 | 05 Sep 2025 | 30 Sep 2025 | USD | 1.423 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
PepsiCo is a premier global consumer staples leader with exceptional brand strength and a highly reliable dividend history. While the company offers a well-covered 4.03% yield backed by robust free cash flow, the current valuation around $142 (P/E 22.4) offers limited upside. Existing holders should maintain positions given the underlying business quality, but new investors may want to wait for a better entry point below $115 before initiating exposure.
Sector Context
PepsiCo manufactures and distributes a massive global portfolio of iconic snack and non-alcoholic beverage brands. In the consumer staples sector, companies with massive scale and brand loyalty operate as near-monopolies, generating the highly stable cash flows ideal for dividend investing, provided they successfully navigate shifting consumer health trends and environmental regulatory pressures.
Temporary Opportunity Identified
Near-term margin compression driven by rising agricultural input costs and consumer pushback against price hikes, compounded by various ongoing consumer class actions and public nuisance litigations.
📊 Strategy Analysis
- • Exceptional brand strength and dominant global market position in both snacks and beverages provide highly resilient, predictable cash flows.
- • The attractive 4.03% dividend yield remains well-supported by free cash flow (58.9% cash flow payout ratio), mitigating concerns over the elevated 85.9% earnings payout ratio.
- • Strong commitment to shareholder returns, evidenced by a steady history of annual dividend increases and a recently authorized $10 billion share buyback program.
- • Conservative leverage with a Net Debt/EBITDA of 2.57x, well within our safe threshold for consumer staples.
⚠ What to Watch
- • Current valuation at a P/E of 22.38x significantly exceeds our target 8-15x range and trades above the estimated monopoly fair value of $114.74, limiting margin of safety.
- • Earnings have declined over the last 8 quarters as the company navigates consumer price sensitivity and rising input costs (sugar, fertilizer) in a higher-for-longer interest rate environment.
- • The business faces structural long-term headwinds from expanding global sugar-sweetened beverage taxes (SSBTs), systemic plastics litigation, and strict extended producer responsibility (EPR) regulations.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.