PepsiCo, Inc.PEP
NasdaqGS•Consumer Defensive•Beverages - Non-Alcoholic
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through six segments: PepsiCo Foods North America; PepsiCo Beverages North America; International Beverages Franchise; Europe, Middle East and Africa; Latin America Foods; and Asia Pacific Foods. It offers cereals, chips, dips, granola bars, oatmeal, pasta, rice, and syrups and mixes; refrigerated dips and spreads; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea and coffee products. The company also provides SodaStream sparkling water makers and related products, as well as various dairy products under the Agusha, Chudo, and Domik v Derevne 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. PepsiCo, Inc. was founded in 1898 and is based in Purchase, New York.
Pepsico, Inc. (PEP) reported trailing twelve months revenue of $95.45B as of March 2026, a 4.3% increase year-over-year. Quarterly revenue reached $19.44B, reflecting continued top-line momentum.
Pepsico, Inc. generated $8.73B in TTM net income, with quarterly EBITDA of $3.96B. The operating margin expanded from 14.4% to 16.5%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (16.5%) and net margin (12.0%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 10.2% a year ago, signaling stronger bottom-line efficiency.
PEP trades at a P/E of 22.5x (in line with broad market averages) and a P/S of 2.1x. The price-to-book ratio of 9.1x indicates a significant premium over book value.
The company reported negative free cash flow of $-406.00M, indicating cash consumption over the period. The balance sheet shows $110.65B in total assets with $42.58B in long-term debt against $21.54B in stockholders equity for a debt-to-equity ratio of 2.0. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~13.6% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 44.7% suggests a durable competitive advantage and efficient capital allocation.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 9.9% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 2.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Share count is stable — no significant dilution or buyback activity.