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PepsiCo Inc
🇺🇸 PEP · NYSE/NASDAQ · US7134481081
Consumer
USD 139.51 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.4
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: 139.51 ÷ 7.65 = 18.4
TTM period through: 2026-06-30
Forward P/E (estimated): 16.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 18.2
Net Debt/EBITDA (TTM)
2.3x
Latest quarter: 8.2x
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: 2026-06-30
Latest quarter (2026-06-30): 8.2x
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
51.5%
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
12.4x
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)
4.05%
TTM: 4.14%
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): 4.05%
Trailing Yield (TTM, last 12 months): 4.14%
Payout Ratio (Fwd)
77.4%
TTM: 74.5%
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): 77.4%
Payout (TTM): 74.5%
Cash Flow Payout (TTM): 58.0%
FCF Coverage (TTM): 1.19x
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 |
| Declared | Quarterly | 17 Jul 2026 | 04 Sep 2026 | 30 Sep 2026 | USD | 1.48 |
| 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 an elite defensive staple currently trading at a historical discount due to transient consumer volume pressures and inflation fatigue. The 4.14% dividend yield is exceptionally attractive and well-covered by free cash flow. Worth considering for new positions as a core, long-term DGI holding.
Sector Context
PepsiCo is a global consumer staples giant operating a dominant duopoly in the non-alcoholic beverages and snacks markets. For DGI investors, the sector offers highly resilient, recession-resistant cash flows, though regulatory scrutiny on packaging waste and ingredients requires ongoing adaptation and capital expenditure.
Temporary Opportunity Identified
Short-term volume softness in core North American divisions driven by inflation fatigue and consumer pushback against prolonged price hikes, leading to recent valuation compression.
📊 Strategy Analysis
- • Strong dividend yield of 4.14%, supported by a conservative 58.0% cash flow payout ratio and an 8-year consecutive growth streak per EODHD data.
- • Exceptional profitability with an ROE of 51.5% and resilient financial stability indicated by a Net Debt/EBITDA ratio of 2.28x.
- • Undemanding valuation at 18.4x TTM P/E, representing an attractive entry point for a defensive global consumer staples duopoly.
- • Partial relief on the litigation front following the dismissal (though under appeal) of the high-profile New York AG plastic waste lawsuit.
⚠ What to Watch
- • Recent revenue declines reflecting short-term volume pressures in North American divisions as consumers push back on cumulative price increases.
- • Persistent structural headwinds from the global expansion of sugar-sweetened beverage taxes (SSBTs) and emerging Extended Producer Responsibility (EPR) packaging laws.
- • Ongoing legal overhang from multiple class-action lawsuits, including unresolved antitrust and price-fixing allegations involving Walmart.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.