Pepsico Story

<div class='circular--portrait' style='background:#169D0B;color: #FFFFF0;font-size:3em;'>PEP</div>
PEP -- USA Stock  

USD 131.07  2.24  1.74%

Pepsico Accounts Payable Turnover is very stable at the moment as compared to the past year. Pepsico reported last year Accounts Payable Turnover of 12.14. As of 11th of February 2021, Accrued Expenses Turnover is likely to grow to 14.73, while Enterprise Value is likely to drop about 197.6 B. The fundamental rationale for this short perspective is to break down our forecasting of Pepsico for insiders. We will try to forecast Pepsico outlook for March.
Published over two weeks ago
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Will holding Pepsico (NASDAQ:PEP) be justified in March 2021?
The company has a beta of 0.5292. Let's try to break down what Pepsico's beta means in this case. As returns on the market increase, Pepsico returns are expected to increase less than the market. However, during the bear market, the loss on holding Pepsico will be expected to be smaller as well. The beta indicator helps investors understand whether Pepsico moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Pepsico deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Pepsico. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Pepsico

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Pepsico's stock 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. Please use the tools below to analyze the current value of Pepsico in the context of predictive analytics.
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 towards taking a position in Pepsico.

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. Please check the breakdown between Pepsico's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Pepsico, but it might be worth checking our own buy vs. sell analysis

What is driving Pepsico Investor Appetite?

The small decline in market price for the last few months may encourage insiders to take a closer look at the company as it is trading at a share price of 137.70 on 6,943,700 in trading volume. The company directors and management did not add much value to Pepsico investors in January. However, diversifying your holdings with Pepsico or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 0.88. The very small Stock volatility is a good signal to insiders with longer-term investment horizons.

Returns Breakdown

Return on Assets
Return on Investment
Return on Investment18.53
Return on Assets8.17
Return on Equity44.48
Return Capital0.19
Return on Sales0.14

Will Pepsico insiders exit after the decline?

Recent sortino ratio is at -0.16. Pepsico has relatively low volatility with skewness of -0.6 and kurtosis of 1.54. However, we advise all investors to independently investigate Pepsico to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

Although some firms in the beverages?non-alcoholic industry are either recovering or due for a correction, Pepsico may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 11th of February 2021, our latest 30 days Buy-Hold-Sell recommendation on the firm is Strong Hold. We believe Pepsico is currently undervalued with below average odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Pepsico. Please refer to our Terms of Use for any information regarding our disclosure principles.

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