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PepsiCo

PEP
55
Beverages - Non-Alcoholic · Consumer Defensive
Also trades as: PEP.DE
Price
$143.48
+1.40 (+0.99%)
Market Cap
$195.99B
Exchange
NASDAQ
Winston Score
55
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 13, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Strong
Stability
Good
Valuation
Strong
Dividends
Strong

Share count falling — buybacks

1.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.39B (2021) → 1.37B (2025)

Winston Score History

The full picture

PepsiCo makes drinks and snacks that billions of people buy every day. Its most famous brands include Pepsi, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, and Quaker oats. It sells to grocery stores, restaurants, schools, and vending machines around the world, making it one of the largest food and beverage companies on the planet.

PepsiCo earns money by selling packaged goods directly to retailers and distributors, who then sell them to consumers. The company operates in over 200 countries and territories, with roughly half its revenue coming from outside North America. Its massive distribution network and portfolio of well-known brands give it strong pricing power and shelf space that smaller competitors struggle to match. The main risk the company faces is shifting consumer preferences away from sugary drinks and salty snacks toward healthier options, which could pressure sales volumes over time.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+137.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

0.5%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$12.9B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

PepsiCo is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
54.2%
Healthy — 54.2% gross margin
Profit after running costs
Operating Margin
16.6%
Healthy — 16.6% operating margin
Return on the money invested
ROCE
19.2%
Strong — 19.2% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+5.6%
Slow sales growth (+5.6% YoY)
Profit growth
EPS YoY
+38.9%
Earnings growing fast (+38.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
128%
Turns 128% of profit into real cash
Spare cash per sale
FCF Margin
9.6%
Modest free cash flow (9.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
2.41
Heavy debt load (2.41)
Covers its interest
Interest Cover
12.85x
Comfortably covers interest (12.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
18.8x
Fair value — P/E 18.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+4.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.8 → 14.7)

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Dividends

Dividend
Dividend Yield
4.13%
Healthy income — 4.13% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+4.5%
Dividend growing modestly (4.5% YoY)

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