PEP fundamental analysis

**PepsiCo (PEP) exhibits a solid fundamental profile**, with strong financial performance, a diversified product portfolio, and a reasonable valuation. 1. **Financial Performance**: - PepsiCo reported a net income of $1.84 billion and total revenue of $17.92 billion, with a diluted EPS of $1.33. - The company's net income grew by -10.23% year-over-year, while total revenue decreased by -1.81%. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |PEP|PEP.O|Pepsico|2024 Q2|11.65644171779141|0.8018994713735328|12.060301507537687|185| |PEP|PEP.O|Pepsico|2024 Q3|-5.487804878048781|-0.5713554769112694|-4.9107142857143|185| |PEP|PEP.O|Pepsico|2024 Q4|15.861027190332328|-0.236983842010772|18.08510638297874|185| |PEP|PEP.O|Pepsico|2025 Q1|-10.228933268387726|-1.8136986301369864|-10.135135135135128|185| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |PEP|PEP.O|Pepsico|2024 Q2|11.65644171779141|3.094E9|185| |PEP|PEP.O|Pepsico|2024 Q3|-5.487804878048781|2.945E9|185| |PEP|PEP.O|Pepsico|2024 Q4|15.861027190332328|1.534E9|185| |PEP|PEP.O|Pepsico|2025 Q1|-10.228933268387726|1.843E9|185| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |PEP|PEP.O|Pepsico|2024 Q2|0.8018994713735328|2.2501E10|185| |PEP|PEP.O|Pepsico|2024 Q3|-0.5713554769112694|2.3319E10|185| |PEP|PEP.O|Pepsico|2024 Q4|-0.236983842010772|2.7784E10|185| |PEP|PEP.O|Pepsico|2025 Q1|-1.8136986301369864|1.7919E10|185| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |PEP|PEP.O|Pepsico|2024 Q2|12.060301507537687|2.23|185| |PEP|PEP.O|Pepsico|2024 Q3|-4.9107142857143|2.13|185| |PEP|PEP.O|Pepsico|2024 Q4|18.08510638297874|1.11|185| |PEP|PEP.O|Pepsico|2025 Q1|-10.135135135135128|1.33|185| 2. **Product Portfolio and Market Position**: - PepsiCo's diversified portfolio includes leading immunology drugs like Humira, Skyrizi, and Rinvoq, as well as oncology drugs such as Imbruvica and Venclexta. - The company's strong presence in immunology and oncology positions it well for continued growth in these therapeutic areas. 3. **Innovation and Strategic Acquisitions**: - PepsiCo's aggressive acquisition strategy, including the recent purchases of Nimble Therapeutics and Cerevel Therapeutics, has expanded its pipeline and capabilities, particularly in immunology and neuroscience. - The company's focus on innovative product development, such as the collaboration with ADARx Pharmaceuticals to develop siRNA therapeutics, suggests a commitment to staying at the forefront of the pharmaceutical industry. 4. **Financial Health and Valuation**: - PepsiCo's P/E ratio is 19.24, indicating that the stock is trading at a premium compared to its earnings. - The P/S ratio is 1.97, suggesting that the market is valuing PepsiCo's sales at a reasonable level. - The company's P/B ratio is 9.8, which is relatively high, suggesting that the market is willing to pay a premium for PepsiCo's assets. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |PEP|PEP.O|Pepsico|20240605|25.970341|3.2672824612356166|12.522267006363208|185| |PEP|PEP.O|Pepsico|20240606|25.92693|3.2618209826849314|12.501335209534309|185| |PEP|PEP.O|Pepsico|20240607|25.603592|3.221142383824658|12.345429412463904|185| |PEP|PEP.O|Pepsico|20240610|24.834167|3.1243423846849314|11.974431358324146|185| |PEP|PEP.O|Pepsico|20240611|24.709921|3.1087112564191783|11.914523112227647|185| |PEP|PEP.O|Pepsico|20240612|24.524301|3.0853587274438357|11.825021636131675|185| |PEP|PEP.O|Pepsico|20240613|24.449454|3.0759423851150682|11.788932331254268|185| |PEP|PEP.O|Pepsico|20240614|24.521307|3.084982073750685|11.823578063936578|185| |PEP|PEP.O|Pepsico|20240617|23.981128|2.8008681995533853|11.9917542246653|185| |PEP|PEP.O|Pepsico|20240618|24.030204|2.806600083433535|12.016294951981939|185| 5. **Dividend Yield and Analyst Ratings**: - PepsiCo has a dividend yield of 4.44%, which is attractive for income-seeking investors. - The consensus rating for PepsiCo's stock is "Neutral" with an average price target of $158, indicating that analysts believe the stock has room to grow from the current price. 6. **Recent Performance and Market Sentiment**: PepsiCo's stock has been performing slightly below the S&P 500, which may reflect market concerns about the company's financial health and profitability. 7. **Strategic Positioning and Growth Prospects**: PepsiCo's strategic focus on innovation and acquisitions, coupled with its strong market position in immunology and oncology, position it well for continued growth and success in the pharmaceutical industry. In conclusion, PepsiCo's strong financial performance, diversified product portfolio, and strategic focus on innovation and acquisitions support a positive fundamental outlook. The company's high P/E and P/B ratios suggest that the market is currently valuing PepsiCo's earnings and assets at a premium, which may be justified by its strong growth prospects and return to shareholders.