NASDAQ · Consumer Defensive

PepsiCo, Inc.

PEP · Beverages - Non-Alcoholic

$153.97

▼ -3.44 (-2.19%)

Data cached · refreshes every 10 min

Mr. Market is currently offering PepsiCo, Inc. at $153.97.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 54.1%

Operating Margin 14.4%

Net Income Margin 8.8%

Fin. Health F

Years to Pay Off Debt 6.1 yrs

Working Capital vs Long-Term Debt -$47.1B

Working Capital -$4.8B

Valuation F

Margin of Safety 0.0%

Price-to-Book 10.31x

Cash Flow C

Free Cash Flow $7.7B

CapEx % of Net Income 53.6%

Owner Earnings $16.8B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $210.5B

Enterprise Value $257.2B

P/E (TTM) 24.13

Dividend Yield 3.61%

Exchange NASDAQ

Key Margins

Gross Profit 54.1%

Operating Margin 14.4%

Net Margin 8.8%

Company Info

Sector Consumer Defensive

Industry Beverages - Non-Alcoholic

Employees 306000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering PepsiCo, Inc. at $153.97.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $153.97, the stock trades at a 243% premium to its Graham Number of $44.90. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About PepsiCo, Inc.

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	54.1% ▼	54.6%	54.2%	53.0%	N/A
Operating Margin %	14.4% ▲	14.1%	14.1%	13.1%	N/A
Net Income %	8.8% ▼	10.4%	9.9%	10.3%	N/A
Diluted EPS	6.00 ▼	6.95	6.56	6.42	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$107.4B	$99.5B	$100.5B	$92.2B	N/A
Total Debt	$49.9B ↑	$44.9B	$44.7B	$39.6B	N/A
Working Capital	-$4.8B ▲	-$5.7B	-$4.7B	-$5.2B	N/A
Years to Pay Debt	6.06	4.69	4.92	4.44	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$7.7B ▲	$7.2B	$7.9B	$5.6B	N/A
Owner Earnings	$16.8B	$18.7B	$18.1B	$17.4B	N/A
CapEx % of Net Income	53.6%	55.5%	60.8%	58.4%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-379,184	-6,409	-183,546	24,955
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	17,536,000	16,713,000	16,681,000	14,769,000
Total Unusual Items	-1,993,000	-33,000	-927,000	155,000
Total Unusual Items Excluding Goodwill	-1,993,000	-33,000	-927,000	155,000
Net Income From Continuing Operation Net Minority Interest	8,240,000	9,578,000	9,074,000	8,910,000
Reconciled Depreciation	4,178,000	3,815,000	3,518,000	3,280,000
Reconciled Cost Of Revenue	43,066,000	41,744,000	41,881,000	40,576,000
EBITDA	15,543,000	16,680,000	15,754,000	14,924,000
EBIT	11,365,000	12,865,000	12,236,000	11,644,000
Net Interest Income	-1,121,000	-919,000	-819,000	-939,000
Interest Expense	1,121,000	919,000	819,000	939,000
Normalized Income	9,853,816	9,604,591	9,817,454	8,779,955
Net Income From Continuing And Discontinued Operation	8,240,000	9,578,000	9,074,000	8,910,000
Total Expenses	80,434,000	78,934,000	78,558,000	75,035,000
Total Operating Income As Reported	11,498,000	12,887,000	11,986,000	11,512,000
Diluted Average Shares	1,373,000	1,378,000	1,383,000	1,387,000
Basic Average Shares	1,367,340	1,371,989	1,374,000	1,377,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	8,240,000	9,578,000	9,074,000	8,910,000
Net Income Common Stockholders	8,240,000	9,578,000	9,074,000	8,910,000
Net Income	8,240,000	9,578,000	9,074,000	8,910,000
Minority Interests	-55,000	-48,000	-81,000	-68,000
Net Income Including Noncontrolling Interests	8,295,000	9,626,000	9,155,000	8,978,000
Net Income Continuous Operations	8,295,000	9,626,000	9,155,000	8,978,000
Tax Provision	1,949,000	2,320,000	2,262,000	1,727,000
Pretax Income	10,244,000	11,946,000	11,417,000	10,705,000
Other Income Expense	-2,126,000	-55,000	-677,000	287,000
Other Non Operating Income Expenses	-133,000	-22,000	250,000	132,000
Special Income Charges	-1,993,000	-33,000	-927,000	155,000
Impairment Of Capital Assets	1,993,000	33,000	927,000	3,166,000
Restructuring And Mergern Acquisition		0	0	-3,321,000	0
Net Non Operating Interest Income Expense	-1,121,000	-919,000	-819,000	-939,000
Interest Expense Non Operating	1,121,000	919,000	819,000	939,000
Operating Income	13,491,000	12,920,000	12,913,000	11,357,000
Operating Expense	37,368,000	37,190,000	36,677,000	34,459,000
Selling General And Administration	37,368,000	37,190,000	36,677,000	34,459,000
Gross Profit	50,859,000	50,110,000	49,590,000	45,816,000
Cost Of Revenue	43,066,000	41,744,000	41,881,000	40,576,000
Total Revenue	93,925,000	91,854,000	91,471,000	86,392,000
Operating Revenue	93,925,000	91,854,000	91,471,000	86,392,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	500,000	495,000	493,000	490,000
Ordinary Shares Number	1,367,340	1,371,989	1,374,000	1,377,000
Share Issued	1,867,340	1,866,989	1,867,000	1,867,000
Net Debt	40,023,000	35,801,000	34,394,000	34,117,000
Total Debt	49,901,000	44,948,000	44,661,000	39,554,000
Tangible Book Value	-13,576,000	-14,294,000	-14,154,000	-16,639,000
Invested Capital	69,588,000	62,347,000	62,608,000	56,220,000
Working Capital	-4,815,000	-5,710,000	-4,697,000	-5,246,000
Net Tangible Assets	-13,576,000	-14,294,000	-14,154,000	-16,639,000
Capital Lease Obligations	719,000	642,000	556,000	483,000
Common Stock Equity	20,406,000	18,041,000	18,503,000	17,149,000
Total Capitalization	62,727,000	55,265,000	56,098,000	52,806,000
Total Equity Gross Minority Interest	20,547,000	18,171,000	18,637,000	17,273,000
Minority Interest	141,000	130,000	134,000	124,000
Stockholders Equity	20,406,000	18,041,000	18,503,000	17,149,000
Gains Losses Not Affecting Retained Earnings	-15,024,000	-17,612,000	-15,534,000	-15,302,000
Other Equity Adjustments	-15,024,000	-17,612,000	-15,534,000	-15,302,000
Treasury Stock	41,832,000	41,021,000	40,282,000	39,506,000
Retained Earnings	72,788,000	72,266,000	70,035,000	67,800,000
Additional Paid In Capital	4,451,000	4,385,000	4,261,000	4,134,000
Capital Stock	23,000	23,000	23,000	23,000
Common Stock	23,000	23,000	23,000	23,000
Total Liabilities Net Minority Interest	86,852,000	81,296,000	81,858,000	74,914,000
Total Non Current Liabilities Net Minority Interest	54,088,000	49,760,000	50,211,000	48,129,000
Other Non Current Liabilities	7,965,000	9,052,000	8,721,000	8,339,000
Non Current Deferred Liabilities	3,802,000	3,484,000	3,895,000	4,133,000
Non Current Deferred Taxes Liabilities	3,802,000	3,484,000	3,895,000	4,133,000
Long Term Debt And Capital Lease Obligation	42,321,000	37,224,000	37,595,000	35,657,000
Long Term Debt	42,321,000	37,224,000	37,595,000	35,657,000
Current Liabilities	32,764,000	31,536,000	31,647,000	26,785,000
Other Current Liabilities	5,771,000	5,216,000	4,969,000	4,390,000
Current Debt And Capital Lease Obligation	7,580,000	7,724,000	7,066,000	3,897,000
Current Capital Lease Obligation	719,000	642,000	556,000	483,000
Current Debt	6,861,000	7,082,000	6,510,000	3,414,000
Other Current Borrowings	4,220,000	4,264,000	4,224,000	3,414,000
Commercial Paper	2,641,000	2,818,000	2,286,000	0
Pensionand Other Post Retirement Benefit Plans Current	2,230,000	2,256,000	2,687,000	2,519,000
Payables And Accrued Expenses	17,183,000	16,340,000	16,925,000	15,979,000
Current Accrued Expenses	3,512,000	3,458,000	3,523,000	3,637,000
Payables	13,671,000	12,882,000	13,402,000	12,342,000
Dividends Payable	1,967,000	1,885,000	1,767,000	1,610,000
Accounts Payable	11,704,000	10,997,000	11,635,000	10,732,000
Total Assets	107,399,000	99,467,000	100,495,000	92,187,000
Total Non Current Assets	79,450,000	73,641,000	73,545,000	70,648,000
Other Non Current Assets	923,000	821,000	780,000	833,000
Defined Pension Benefit	1,449,000	1,190,000	1,057,000	948,000
Non Current Deferred Assets	4,746,000	4,462,000	4,577,000	4,327,000
Non Current Deferred Taxes Assets	4,541,000	4,362,000	4,474,000	4,204,000
Non Current Note Receivables	136,000	111,000	200,000	202,000
Non Current Accounts Receivable					111,000
Investments And Advances	4,564,000	3,331,000	4,330,000	3,886,000
Other Investments	2,526,000	1,346,000	1,616,000	813,000
Long Term Equity Investment	2,038,000	1,985,000	2,714,000	3,073,000
Investmentsin Associatesat Cost					2,627,000
Goodwill And Other Intangible Assets	33,982,000	32,335,000	32,657,000	33,788,000
Other Intangible Assets	15,066,000	14,801,000	14,929,000	15,586,000
Goodwill	18,916,000	17,534,000	17,728,000	18,202,000
Net PPE	33,650,000	31,391,000	29,944,000	26,664,000
Accumulated Depreciation	-31,004,000	-27,997,000	-27,400,000	-25,493,000
Gross PPE	64,654,000	59,388,000	57,344,000	52,157,000
Construction In Progress	4,811,000	5,941,000	5,695,000	4,491,000
Other Properties	3,745,000	3,383,000	2,905,000	2,373,000
Machinery Furniture Equipment	41,113,000	36,990,000	36,006,000	33,335,000
Buildings And Improvements	13,875,000	11,938,000	11,579,000	10,816,000
Land And Improvements	1,110,000	1,136,000	1,159,000	1,142,000
Current Assets	27,949,000	25,826,000	26,950,000	21,539,000
Other Current Assets	1,068,000	921,000	798,000	806,000
Assets Held For Sale Current				0	1,788,000
Prepaid Assets				806,000	980,000
Inventory	5,845,000	5,306,000	5,334,000	5,222,000
Finished Goods	3,121,000	2,762,000	2,842,000	2,742,000
Work In Process	143,000	104,000	104,000	114,000
Raw Materials	2,581,000	2,440,000	2,388,000	2,366,000
Receivables	11,506,000	10,333,000	10,815,000	10,163,000
Receivables Adjustments Allowances	-230,000	-356,000	-175,000	-150,000
Other Receivables	2,471,000	2,202,000	2,315,000	2,121,000
Accounts Receivable	9,265,000	8,487,000	8,675,000	8,192,000
Cash Cash Equivalents And Short Term Investments	9,530,000	9,266,000	10,003,000	5,348,000
Other Short Term Investments	371,000	761,000	292,000	394,000
Cash And Cash Equivalents	9,159,000	8,505,000	9,711,000	4,954,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	7,672,000	7,189,000	7,924,000	5,604,000
Repurchase Of Capital Stock	-1,000,000	-1,000,000	-1,000,000	-1,500,000
Repayment Of Debt	-12,002,000	-9,525,000	-6,140,000	-6,156,000
Issuance Of Debt	15,750,000	10,220,000	10,910,000	5,346,000
Capital Expenditure	-4,415,000	-5,318,000	-5,518,000	-5,207,000
Interest Paid Supplemental Data	1,748,000	1,585,000	1,401,000	1,043,000
Income Tax Paid Supplemental Data	3,083,000	3,064,000	2,532,000	2,766,000
End Cash Position	9,204,000	8,553,000	9,761,000	5,100,000
Beginning Cash Position	8,553,000	9,761,000	5,100,000	5,707,000
Effect Of Exchange Rate Changes	422,000	-687,000	-277,000	-465,000
Changes In Cash	229,000	-521,000	4,938,000	-142,000
Financing Cash Flow	-4,979,000	-7,556,000	-3,009,000	-8,523,000
Cash Flow From Continuing Financing Activities	-4,979,000	-7,556,000	-3,009,000	-8,523,000
Net Other Financing Charges	-186,000	-188,000	-213,000	-179,000
Proceeds From Stock Option Exercised	97,000	166,000	116,000	138,000
Cash Dividends Paid	-7,638,000	-7,229,000	-6,682,000	-6,172,000
Common Stock Dividend Paid	-7,638,000	-7,229,000	-6,682,000	-6,172,000
Net Common Stock Issuance	-1,000,000	-1,000,000	-1,000,000	-1,500,000
Common Stock Payments	-1,000,000	-1,000,000	-1,000,000	-1,500,000
Net Issuance Payments Of Debt	3,748,000	695,000	4,770,000	-810,000
Net Short Term Debt Issuance	-359,000	539,000	2,293,000	-13,000
Short Term Debt Payments	-7,920,000	-5,639,000	-3,135,000	-1,982,000
Short Term Debt Issuance	7,561,000	6,178,000	5,428,000	1,969,000
Net Long Term Debt Issuance	4,107,000	156,000	2,477,000	-797,000
Long Term Debt Payments	-4,082,000	-3,886,000	-3,005,000	-4,174,000
Long Term Debt Issuance	8,189,000	4,042,000	5,482,000	3,377,000
Investing Cash Flow	-6,879,000	-5,472,000	-5,495,000	-2,430,000
Cash Flow From Continuing Investing Activities	-6,879,000	-5,472,000	-5,495,000	-2,430,000
Net Other Investing Changes	-100,000	14,000	48,000	11,000
Net Investment Purchase And Sale	460,000	-420,000	16,000	-117,000
Sale Of Investment	650,000	5,000	571,000	174,000
Purchase Of Investment	-190,000	-425,000	-555,000	-291,000
Net Business Purchase And Sale	-3,352,000	-90,000	-239,000	2,632,000
Sale Of Business	39,000	166,000	75,000	3,505,000
Purchase Of Business	-3,391,000	-256,000	-314,000	-873,000
Net PPE Purchase And Sale	528,000	342,000	198,000	251,000
Sale Of PPE	528,000	342,000	198,000	251,000
Capital Expenditure Reported	-4,415,000	-5,318,000	-5,518,000	-5,207,000
Operating Cash Flow	12,087,000	12,507,000	13,442,000	10,811,000
Cash Flow From Continuing Operating Activities	12,087,000	12,507,000	13,442,000	10,811,000
Taxes Refund Paid	-772,000	-579,000	-309,000	-309,000
Change In Working Capital	-1,645,000	-1,478,000	-337,000	-888,000
Change In Payables And Accrued Expense	-1,110,000	-1,066,000	730,000	1,899,000
Change In Payable	-1,110,000	-1,066,000	730,000	1,899,000
Change In Account Payable	-677,000	-943,000	420,000	1,842,000
Change In Tax Payable	-433,000	-123,000	310,000	57,000
Change In Income Tax Payable	-433,000	-123,000	310,000	57,000
Change In Prepaid Assets	195,000	40,000	-13,000	118,000
Change In Inventory	-150,000	-314,000	-261,000	-1,142,000
Change In Receivables	-580,000	-138,000	-793,000	-1,763,000
Other Non Cash Items	-778,000	-325,000	-74,000	-555,000
Stock Based Compensation	288,000	362,000	380,000	343,000
Asset Impairment Charge	1,946,000	714,000	1,230,000	3,651,000
Deferred Tax	71,000	-42,000	-271,000	-787,000
Deferred Income Tax	71,000	-42,000	-271,000	-787,000
Depreciation Amortization Depletion	4,178,000	3,815,000	3,518,000	3,280,000
Depreciation And Amortization	4,178,000	3,815,000	3,518,000	3,280,000
Depreciation	4,178,000	3,815,000	3,518,000	3,280,000
Operating Gains Losses	504,000	414,000	150,000	-2,902,000
Pension And Employee Benefit Expense	504,000	414,000	150,000	419,000
Gain Loss On Sale Of Business		0	0	-3,321,000	0
Net Income From Continuing Operations	8,295,000	9,626,000	9,155,000	8,978,000

These metrics estimate what PepsiCo, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$44.90

Margin of Safety

Market Cap ÷ Company Value

3.05

P/B Ratio

10.31

Warren's Owner Earnings

$16.8B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$93.9B

vs > $1.5B revenue

❌ Strong Financial Condition

0.85x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

3.61%

vs Uninterrupted dividends

❌ Earnings Growth

-6.5% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

24.1x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

10.31x P/B (P/E×P/B: 248.9)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-43.10

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$109.67

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	53.6%	55.5%	60.8%	58.4%	N/A
Repurchase of Capital Stock	-$1.0B	-$1.0B	-$1.0B	-$1.5B	N/A
Free Cash Flow	$7.7B ▲	$7.2B ▼	$7.9B ▲	$5.6B •	N/A •
Warren's Owner Earnings	$16.8B	$18.7B	$18.1B	$17.4B	N/A

Peers & Industry

No auto-detected peers for Beverages - Non-Alcoholic. You can manually compare PEP against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.20%

Low — management has little skin in the game

Return on Equity (ROE)

40.4%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

7.7%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.0B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+11.0% YoY

Debt is growing — management is leveraging up

Leadership Team

Ramon Luis Laguarta

Chairman & CEO

Age 61

Pay: $8,227,970

0.100% of net income

Stephen Schmitt

Executive Vice President & CFO

Age 51

Pay: $3,196,609

0.039% of net income

Silviu Yeugeniu Popovici

Chief Executive Officer of Europe, Middle East & Africa

Age 57

Pay: $3,613,570

0.044% of net income

Gregg Roden

Executive VP & COO

Stephen Kehoe

Executive VP, & Chairman of PepsiCo Foundation & Chief Corporate Affairs Officer

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.86%	138,483,870
Blackrock Inc.	8.23%	115,568,103
State Street Corporation	4.23%	59,392,615
Geode Capital Management, LLC	2.39%	33,617,937
JPMORGAN CHASE & CO	2.11%	29,594,502
Charles Schwab Investment Management, Inc.	2.00%	28,090,426
Morgan Stanley	1.78%	24,956,082
Bank of America Corporation	1.51%	21,150,376

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.39

Low volatility — more stable than the market

Short Interest

1.7% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

2.45x

High leverage — significant financial risk

Current Ratio

0.90x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $127.60 Current: $153.97 High: $171.48

Currently at 60% of 52-week range

360investing