Pepsico Stock Buy Hold or Sell Recommendation
| PEP Stock | USD 172.27 2.79 1.65% |
Considering the 90-day investment horizon and your bold attitude towards risk, our recommendation regarding PepsiCo is 'Buy'. Macroaxis provides PepsiCo buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PepsiCo positions. The advice algorithm takes into account all of PepsiCo's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting PepsiCo's buy or sell advice are summarized below:
Real Value 173.84 | Target Price 177.98 | Hype Value 170.85 | Market Value 172.27 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell PepsiCo given historical horizon and risk tolerance towards PepsiCo. When Macroaxis issues a 'buy' or 'sell' recommendation for PepsiCo, the advice is generated through an automated system that utilizes algorithms and statistical models.
PepsiCo |
Execute PepsiCo Buy or Sell Advice
The PepsiCo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on PepsiCo. Macroaxis does not own or have any residual interests in PepsiCo or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute PepsiCo's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
PepsiCo Trading Alerts and Improvement Suggestions
| The company has 44.66 B in debt with debt to equity (D/E) ratio of 2.05, meaning that the company heavily relies on borrowing funds for operations. PepsiCo has a current ratio of 0.9, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist PepsiCo until it has trouble settling it off, either with new capital or with free cash flow. So, PepsiCo's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like PepsiCo sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for PepsiCo to invest in growth at high rates of return. When we think about PepsiCo's use of debt, we should always consider it together with cash and equity. | |
| PepsiCo has a strong financial position based on the latest SEC filings | |
| Over 77.0% of PepsiCo shares are owned by institutional investors | |
| On 1st of April 2024 PepsiCo paid $ 1.265 per share dividend to its current shareholders | |
| Latest headline from zacks.com: Why PepsiCo Outpaced the Stock Market Today |
PepsiCo Returns Distribution Density
The distribution of PepsiCo's historical returns is an attempt to chart the uncertainty of PepsiCo's future price movements. The chart of the probability distribution of PepsiCo daily returns describes the distribution of returns around its average expected value. We use PepsiCo price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of PepsiCo returns is essential to provide solid investment advice for PepsiCo.
| Mean Return | 0.03 | Value At Risk | -1.22 | Potential Upside | 1.53 | Standard Deviation | 1.02 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of PepsiCo historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
PepsiCo Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as PepsiCo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading PepsiCo backward and forwards among themselves. PepsiCo's institutional investor refers to the entity that pools money to purchase PepsiCo's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of New York Mellon Corp | 2023-12-31 | 14.2 M | Legal & General Group Plc | 2023-12-31 | 12.9 M | Wells Fargo & Co | 2023-12-31 | 12.4 M | Capital Research Global Investors | 2023-12-31 | 11.6 M | Wellington Management Company Llp | 2023-12-31 | 11.2 M | California Public Employees Retrmnt Sys | 2023-12-31 | 9.7 M | Ubs Asset Mgmt Americas Inc | 2023-12-31 | 9.4 M | Franklin Resources Inc | 2023-12-31 | 9 M | T. Rowe Price Associates, Inc. | 2023-12-31 | 8.8 M | Vanguard Group Inc | 2023-12-31 | 131.3 M | Blackrock Inc | 2023-12-31 | 111.8 M |
PepsiCo Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (190M) | (516M) | (582M) | (1.1B) | (261M) | (248.0M) | |
| Change In Cash | (5.2B) | 2.7B | (2.5B) | (607M) | 4.7B | 4.9B | |
| Free Cash Flow | 5.4B | 6.4B | 7.0B | 5.6B | 7.9B | 4.6B | |
| Depreciation | 2.4B | 2.5B | 3.2B | 3.3B | (2.9B) | (2.8B) | |
| Other Non Cash Items | (339M) | 568M | (785M) | (115M) | 7.4B | 7.7B | |
| Dividends Paid | 5.3B | 5.5B | 5.8B | 6.2B | (6.7B) | (6.3B) | |
| Capital Expenditures | 4.2B | 4.2B | 4.6B | 5.2B | 5.5B | 2.9B | |
| Net Income | 7.4B | 7.2B | 7.7B | 9.0B | 9.1B | 5.1B | |
| End Period Cash Flow | 5.6B | 8.3B | 5.7B | 5.1B | 9.8B | 10.2B | |
| Change To Netincome | 776M | 1.1B | 65M | (667M) | (600.3M) | (570.3M) | |
| Change Receivables | (253M) | (650M) | (420M) | (1.8B) | (1.6B) | (1.5B) | |
| Net Borrowings | (355M) | 11.3B | 712M | (810M) | (729M) | (692.6M) | |
| Investments | 97M | (1.1B) | 1.1B | (141M) | (5.1B) | (4.9B) |
PepsiCo Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to PepsiCo or Beverages sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that PepsiCo's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a PepsiCo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.0058 | |
β | Beta against NYSE Composite | 0.46 | |
σ | Overall volatility | 1.05 | |
Ir | Information ratio | -0.03 |
PepsiCo Volatility Alert
PepsiCo has low volatility with Treynor Ratio of 0.03, Maximum Drawdown of 5.44 and kurtosis of 4.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PepsiCo's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact PepsiCo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.PepsiCo Implied Volatility
PepsiCo's implied volatility exposes the market's sentiment of PepsiCo stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if PepsiCo's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that PepsiCo stock will not fluctuate a lot when PepsiCo's options are near their expiration.
PepsiCo Fundamentals Vs Peers
Comparing PepsiCo's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze PepsiCo's direct or indirect competition across all of the common fundamentals between PepsiCo and the related equities. This way, we can detect undervalued stocks with similar characteristics as PepsiCo or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of PepsiCo's fundamental indicators could also be used in its relative valuation, which is a method of valuing PepsiCo by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare PepsiCo to competition |
| Fundamentals | PepsiCo | Peer Average |
| Return On Equity | 0.51 | -0.31 |
| Return On Asset | 0.0878 | -0.14 |
| Profit Margin | 0.1 % | (1.27) % |
| Operating Margin | 0.1 % | (5.51) % |
| Current Valuation | 267.41 B | 16.62 B |
| Shares Outstanding | 1.37 B | 571.82 M |
| Shares Owned By Insiders | 0.15 % | 10.09 % |
| Shares Owned By Institutions | 76.86 % | 39.21 % |
| Number Of Shares Shorted | 16.52 M | 4.71 M |
| Price To Earning | 26.34 X | 28.72 X |
| Price To Book | 12.49 X | 9.51 X |
| Price To Sales | 2.53 X | 11.42 X |
| Revenue | 91.47 B | 9.43 B |
| Gross Profit | 46.05 B | 27.38 B |
| EBITDA | 17.04 B | 3.9 B |
| Net Income | 9.07 B | 570.98 M |
| Cash And Equivalents | 6.74 B | 2.7 B |
| Cash Per Share | 4.89 X | 5.01 X |
| Total Debt | 44.66 B | 5.32 B |
| Debt To Equity | 2.05 % | 48.70 % |
| Current Ratio | 0.92 X | 2.16 X |
| Book Value Per Share | 13.47 X | 1.93 K |
| Cash Flow From Operations | 13.44 B | 971.22 M |
| Short Ratio | 2.56 X | 4.00 X |
| Earnings Per Share | 6.57 X | 3.12 X |
| Price To Earnings To Growth | 2.78 X | 4.89 X |
| Target Price | 187.74 | |
| Number Of Employees | 318 K | 18.84 K |
| Beta | 0.53 | -0.15 |
| Market Capitalization | 230.23 B | 19.03 B |
| Total Asset | 100.5 B | 29.47 B |
| Retained Earnings | 70.03 B | 9.33 B |
| Working Capital | (4.7 B) | 1.48 B |
PepsiCo Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as PepsiCo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 83277.81 | |||
| Daily Balance Of Power | 1.081395 | |||
| Rate Of Daily Change | 1.02 | |||
| Day Median Price | 171.39 | |||
| Day Typical Price | 171.68 | |||
| Price Action Indicator | 2.28 | |||
| Period Momentum Indicator | 2.79 | |||
| Relative Strength Index | 94.44 |
About PepsiCo Buy or Sell Advice
When is the right time to buy or sell PepsiCo? Buying financial instruments such as PepsiCo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 40.3B | 39.1B | 44.7B | 46.9B | Total Assets | 92.4B | 92.2B | 100.5B | 105.5B |
Use Investing Ideas to Build Portfolios
In addition to having PepsiCo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 18 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks - Regional Theme or any other thematic opportunities.
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Check out PepsiCo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in PepsiCo Stock, please use our How to Invest in PepsiCo guide.Note that the PepsiCo information on this page should be used as a complementary analysis to other PepsiCo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for PepsiCo Stock analysis
When running PepsiCo's price analysis, check to measure PepsiCo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PepsiCo is operating at the current time. Most of PepsiCo's value examination focuses on studying past and present price action to predict the probability of PepsiCo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PepsiCo's price. Additionally, you may evaluate how the addition of PepsiCo to your portfolios can decrease your overall portfolio volatility.
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Is PepsiCo's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PepsiCo. If investors know PepsiCo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PepsiCo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.521 | Dividend Share 4.945 | Earnings Share 6.57 | Revenue Per Share 66.476 | Quarterly Revenue Growth (0.01) |
The market value of PepsiCo is measured differently than its book value, which is the value of PepsiCo that is recorded on the company's balance sheet. Investors also form their own opinion of PepsiCo's value that differs from its market value or its book value, called intrinsic value, which is PepsiCo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PepsiCo's market value can be influenced by many factors that don't directly affect PepsiCo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PepsiCo's value and its price as these two are different measures arrived at by different means. Investors typically determine if PepsiCo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PepsiCo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.