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A look at a High Market Cap Stock: Pepsico, Inc., PEP

Pepsico, Inc., PEP is in the exchange NYSE and its industry is Beverages – Soft Drinks in the sector of Consumer Goods. Based in USA, Pepsico, Inc., PEP  has a market cap of 156846.41. Since its IPO date on the 6/1/1972, Pepsico, Inc., PEP performance year to date is 9.95%. Today Pepsico, Inc., PEP has gained 0.73%, with a current price of 108.27.

Ownership of the company is 0.10% for insider ownership while institutional ownership is 71.20%. The management of the company have seen the company have a payout ratio of 79.60%. Return of assets are at 7.30%, with return on investment at 14.10%.

In terms of debt levels and profit levels, Pepsico, Inc., PEP is seeing a long-term debt/equity of 2.76. While Total debt/equity is 3.12. With a profit margin of 8.20%, this is combined with a gross margin of 55.20%, and operating margin of 13.00%. Pepsico, Inc. ability to meet debt levels, with a current ratio of 1.4, while the quick ratio is 1.2.

For the last year Pepsico, Inc., PEP has seen a EPS growth of -13.90%. A performance for the year of 17.87%. The 52-week high is -0.67%, and the 52-week low is 45.78%. The average volume for Pepsico, Inc., PEP is 6013697.

With a target price of 111.89, can Pepsico, Inc., PEP reach this target? Looking at the value indicators of Pepsico, Inc., PEP. Pepsico, Inc. has a P/E of 30.92 and a forward P/E of 21.19. Perhaps the more useful indicator than P/E, is PEG which has a value of 4.83. Pepsico, Inc. also has a P/S and a P/B of 2.5 and 13.92 respectively. For P/cash, Pepsico, Inc. has a value of 12.92, while it is 20.74 for P/free cash flow.

At the current price of 108.27, Pepsico, Inc. has a dividend yield of 2.78%. We see a return on equity of 38.60%.

Looking more long-term Pepsico, Inc., is projected to get an EPS growth for the next five years of 6.40%. In the short-term an EPS growth of 8.10% in the next year is forecasted. This is after a EPS growth of -13.90% for this year and for the last five years a -1.30% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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