| 2008 | 2009 | 2018 | 2019 (projected) | PepsiCo Cost of Revenue | 11,497,000,000 | 28,209,000,000 | 25,388,100,000 | 22,412,631,579 | PepsiCo Consolidated Income | 3,000,000,000 | 6,379,000,000 | 5,741,100,000 | 5,230,947,368 |
Still unsure about PepsiCo?
 | By Vlad Skutelnik | Macroaxis Story |
This piece is geared to all PepsiCo insiders as well as to investors considering exiting their position in the corporate body. I will focus on the cause of why it is still reasonable for the corporate body to generate above average margins and lots of cash flow. PepsiCo Piotroski F Score is 7 - Strong. Considering 30-days investment horizon, PepsiCo is expected to under-perform the market. But the corporate body apears to be less risky and when comparing its historical volatility, the company is 1.45 times less risky than the market. the firm trades about -0.22 of its potential returns per unit of risk. The market is currently generating roughly -0.05 of returns per unit of risk over similar time horizon. We found thirty-eight available financial ratios for PepsiCo which can be compared to its competitors. To make sure the equity is not overpriced, please check all PepsiCo fundamentals including its Revenue, Cash Flow from Operations, Current Asset, as well as the relationship between Cash per Share and Beta . Given that PepsiCo has Price to Earning of 31.59X, we recommend you check out PepsiCo recent market performance to make sure the company can sustain itself down the road. Use PepsiCo to protect your portfolios against small markets fluctuations. The stock experiences normal downward trend and little activity. Check odds of PepsiCo to be traded at $107.65 in 30 days.
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Reviewed by Raphi Shpitalnik
PEPSICO INC has roughly 13.9B in cash with 5.98B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.85. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $1.63 per share. About 73.0% of the company shares are owned by institutional investors. The company last dividend was issued on 2018-12-06. PepsiCo had 2:1 split on 1996-05-29.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as PepsiCo. Your research has to be compared to or analyzed against PepsiCo's peers to derive any actionable benefits. When done correctly, PepsiCo's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in PepsiCo.
Investing in PepsiCo, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding PepsiCo along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of PepsiCo's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is PepsiCo's Liquidity
PepsiCo financial leverage refers to using borrowed capital as a funding source to finance PepsiCo ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PepsiCo financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to PepsiCo's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of PepsiCo's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between PepsiCo's total debt and its cash.
PepsiCo Gross Profit
PepsiCo Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing PepsiCo previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show PepsiCo Gross Profit growth over the last 10 years. Please check PepsiCo's gross profit and other fundamental indicators for more details.
PepsiCo Correlation with Peers
Investors in PepsiCo can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in PepsiCo. Diversification will allow for the same portfolio return with reduced risk. The correlation table of PepsiCo and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities PepsiCo is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of PepsiCo for more details
What is driving PepsiCo Investor Appetite?
The recent PepsiCo price drops may encourage investors to take a closer look at the company as it closed today at a share price of 108.73 on 985554 in trading volume. The company executives were unable to exploit market volatilities in December. However, diversifying your overall positions with PepsiCo can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.3238. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. PepsiCo makes 13.9b cash and equivalents. PepsiCo is selling for 108.74. This is 0.07 percent decrease. Today lowest is 108.73. PepsiCo Inventory is increasing over the last 4 years. Also, PepsiCo Current Liabilities is increasing over the last 4 years.
All in all, our research shows that PepsiCo is not too risky with below average probability of financial unrest in the next two years. Our concluding buy-hold-sell recommendation on the corporate body is Hold.
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