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 0.9% decline year-over-year. Quarterly revenue reached $19.44B, reflecting a contraction in sales.
Pepsico, Inc. generated $8.74B in TTM net income, with quarterly EBITDA of $2.97B. The operating margin expanded from 16.1% 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 5.6% a year ago, signaling stronger bottom-line efficiency.
PEP trades at a P/E of 24.6x (in line with broad market averages) and a P/S of 2.3x. The price-to-book ratio of 10.1x 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 $21.38B 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 ~13.8% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 43.6% suggests a durable competitive advantage and efficient capital allocation.
7 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 11.5% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.1x on average — earnings are well-supported by cash generation.
D/E ratio is 2.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation