PepsiCo Inc
🇺🇸 PEP · NYSE/NASDAQ · US7134481081
Consumer
USD 149.12 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
23.4
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: 149.12 ÷ 6.37 = 23.4
TTM period through: 2026-03-31
Forward P/E (estimated): 18.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.4
Yield (Fwd)
3.97%
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.
Trailing Yield (TTM): 3.81%
Div. Growth (5Y CAGR)
7.0%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
2.8x
Latest quarter: 14.1x
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): 14.1x
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).
Payout (Fwd)
92.9%
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 (TTM): 88.3%
Cash Flow Payout (TTM): 58.9%
FCF Coverage (TTM): 1.15x
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
15.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
PepsiCo is a premier global consumer staples leader operating a dominant duopoly with exceptional brand strength and pricing power. While the company offers a highly reliable 3.8% dividend yield safely covered by cash flows, the current valuation around $149 (P/E 23.4) offers limited upside. Existing holders should maintain positions given the exceptional quality and safe payout, but new investors may want to wait for a better entry point.
Sector Context
PepsiCo is a premier global consumer staples leader operating a highly dominant duopoly in the snacks and beverage markets. The consumer staples sector is traditionally prized by dividend investors for its defensive characteristics, stable demand, and consistent cash flows that support reliable long-term payouts regardless of broader economic cycles.
Temporary Opportunity Identified
Near-term volume pressures in North American snacks requiring price adjustments, alongside headline risks from consumer class-action lawsuits.
📊 Strategy Analysis
- • Exceptional competitive moat as a global duopoly in consumer staples, providing highly defensive and predictable cash flows.
- • Attractive and reliable 3.81% dividend yield, safely supported by a conservative cash flow payout ratio of 58.94%.
- • Strong fundamental track record with consistent 10-year revenue growth and healthy leverage metrics (Net Debt/EBITDA of 2.8x).
⚠ What to Watch
- • Current TTM P/E of 23.39x remains significantly above the strategy's target range of 8-15x, restricting the margin of safety.
- • Ongoing volume challenges in the North American snack division have necessitated targeted price reductions to stimulate demand.
- • Multiple recent consumer class-action lawsuits regarding pricing and packaging present near-term headline and legal risks.
📊 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: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.