PepsiCo logged a 0.8% change Friday, and is now trading at a price of $182.3 per share. The S&P 500 index moved 1.0% and the Nasdaq posted a 2.0% change.
PepsiCo shares moved 7.7% over the last 52 weeks, with a high of $186.84 and a low of $154.86. During this time, the stock outperformed the S&P 500 index by 18.0%. As of January 2022, the company's 50-day average price is $174.0. PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The large-cap Consumer Staples company has 315,000 full time employees and is based in Purchase, NY. PepsiCo has returned a 2.5% dividend yield over the last 12 months.
Snapshot of the Company's Consistent Operating Margins:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $67,161 | $70,372 | $79,474 | $86,392 |
| Revenue Growth | n/a | 4.78% | 12.93% | 8.7% |
| Gross Margins | 55.1% | 54.8% | 53.4% | 53.0% |
| Gross Margins Growth | n/a | -0.54% | -2.55% | -0.75% |
| Operating Margins | 15.3% | 14.3% | 14.0% | 13.2% |
| Operating Margins Growth | n/a | -6.54% | -2.1% | -5.71% |
| Net Margins | 10.89% | 10.12% | 9.59% | 10.31% |
| Net Margins Growth | n/a | -7.07% | -5.24% | 7.51% |
| Earnings Per Share | $5.2 | $5.12 | $5.49 | $6.47 |
| EPS Growth | n/a | -1.54% | 7.23% | 17.85% |
| Diluted Shares (MM) | 1,407 | 1,392 | 1,389 | 1,377 |
| Free Cash Flow (MM) | $5,417 | $6,373 | $6,991 | $5,604 |
| FCF Growth | n/a | 17.65% | 9.7% | -19.84% |
| Capital Expenditures (MM) | -$4,232 | -$4,240 | -$4,625 | -$5,207 |
| Net Debt / EBITDA | 2.06 | 2.82 | 2.33 | 2.31 |
PepsiCo Is Too Expensive at Current Levels:
Compared to the Consumer Staples sector's average of 24.36, PepsiCo has a trailing twelve month P/E ratio of 28.2 and, according to its EPS guidance of 7.87, an expected P/E ratio of 23.2. PepsiCo's PEG ratio is 2.5 based on its 11.25% annual average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
PepsiCo's P/B ratio is 14.6 compared to its sector average of 4.29. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 361.4% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 5.57 * 12.454) = $39.51
PepsiCo Is the Subject of Mixed Market Indicators:
21 analysts are following PepsiCo and have set target prices ranging from $175.0 to $213.6 per share. On average, they have given the company a rating of buy. At the current price of $182.3, PEP is trading -4.16% away from its average analyst target price of $190.22 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 0.8% of the company's shares are tied to short positions. Institutions own 76.0% of PepsiCo's shares, while the insider ownership rate stands at 0.15%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $23,790,990,436.
