Fundamental analysis · SEC EDGAR · TTM through 13/06/2026

Fundamental analysis of Pepsico Inc

PEP · Nasdaq · Consumer

Fundamental quality

REASONABLE

68

out of 100

Pepsico Inc earns a fundamental-quality score of 68 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its profitability (net margin 10.8%). Its weakest area is its growth (revenue +6%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

PepsiCo is a global beverages and snacks giant. Beyond Pepsi, it owns brands like Lay's, Doritos, Gatorade and Quaker. Its snacks business (Frito-Lay) is as important as its drinks.

What will shape its future

  • Its brand power to raise prices without losing sales, key amid inflation.
  • The consumer shift toward healthier options with less sugar and salt.
  • Its distribution scale and currency exposure from selling worldwide.

Breakdown by area

I.Growth
50

EPS growth: 7.3% · Revenue growth: 6%

II.Profitability
81

Net margin: 10.8% · ROE: 47.3% · ROIC: 20.9%

III.Financial health
73

Net debt/EBITDA: 1.83x · FCF: 9.6%

Source: SEC EDGAR · TTM through 13/06/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 73%
ROEbeats 90%
Growthbeats 36%
Cash generationbeats 68%
Less debtbeats 45%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Pepsico Inc strengths

  • Solid return on capital: its ROE (47.3%) is inflated by buybacks, but ROIC —which strips that out— is 20.9%.
  • Revenue rising without interruption since 2020.
  • Solid net margin (10.8%): the business is clearly profitable.
  • Positive free cash flow year after year, a self-funding business.

Pepsico Inc risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Pepsico Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202070,3727,1206,37335,965
202179,4747,6186,99134,738
202286,3928,9105,60434,117
202391,4719,0747,92434,394
202491,8549,5787,18935,801
202593,9258,2407,67240,023

Between 2020 and 2025, revenue went from $70,372M to $93,925M (+33%) and net income went from $7,120M to $8,240M (+16%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 13, 2026, versus the half-year ended June 14, 2025 (SEC filings):

  • Revenue+7.3%
  • Net income+71.4%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$5.62

per share, yearly

92.7% of earnings

Payout

54 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Pepsico Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Pepsico Inc a good company to invest in?

In terms of business quality, Pepsico Inc scores 68 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Pepsico Inc a profitable company?

Yes. Pepsico Inc shows a net margin of 10.8% and an ROE of 47.3%, a sign of a profitable business.

Does Pepsico Inc have a lot of debt?

A moderate level: its net debt is 1.83 times its EBITDA.

Is Pepsico Inc growing?

Its revenue has grown 6% annualized in recent years and its earnings per share 7.3%, and without interruption since 2020.

Does Pepsico Inc generate cash?

Yes. It converts about 9.6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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