Last Updated: 07 Nov 2024
Executive Summary
PepsiCo Inc. (PEP) is a multinational food, snack, and beverage corporation with a market capitalization of $225.98 billion. The company has a strong financial position with an EBITDA of $16.91 billion and a profit margin of 10.2%. PEP's dividend yield is 0.0323%, and its EPS is $6.65. The company's stock price is currently trading at $164.71, below its 52-week high of $180.6.
Company Overview
PepsiCo was founded in 1898 and is headquartered in Purchase, New York. The company's business encompasses all aspects of the food and beverage market, including manufacturing, distribution, and marketing. PepsiCo's product portfolio includes a wide range of brands, such as Pepsi, Mountain Dew, Gatorade, Frito-Lay, and Quaker Oats.
Fundamental Analysis
PepsiCo's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 4.5% over the past five years, and its EPS has grown at a CAGR of 6.3%. PepsiCo's profit margins have also been stable, averaging around 10% over the past five years.
The company's balance sheet is also strong, with a debt-to-equity ratio of 0.5. PepsiCo has a strong cash flow from operations, which it has used to invest in its business and pay dividends to shareholders.
Technical Analysis
PepsiCo's stock price has been trading in a range between $156.84 and $180.6 over the past year. The stock is currently trading near the bottom of this range, and it is below its 50-day and 200-day moving averages.
The technical indicators are mixed for PepsiCo. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. However, the moving average convergence divergence (MACD) is above zero, which indicates that the stock is in a bullish trend.
Short Term Outlook
PepsiCo's stock price is likely to remain range-bound in the short term. The stock is currently trading below its 50-day and 200-day moving averages, and the technical indicators are mixed. However, the company's financial performance is strong, and the stock is trading at a discount to its fair value.
Long Term Outlook
PepsiCo's long-term outlook is positive. The company has a strong brand portfolio, a global distribution network, and a proven track record of innovation. The company is also well-positioned to benefit from the growing demand for food and beverage products in emerging markets.
Analyst Recommendations
The majority of analysts have a buy rating on PepsiCo. The average analyst target price is $182.6, which represents a potential upside of 10.9% from the current price.
