Pepsico Stock Return On Equity

PEP Stock

USD 160.34 1.60 1.01%

PepsiCo fundamentals help investors to digest information that contributes to PepsiCo's financial success or failures. It also enables traders to predict the movement of PepsiCo Stock. The fundamental analysis module provides a way to measure PepsiCo's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to PepsiCo stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.47	0.27

As of 11/22/2024, Return On Equity is likely to drop to 0.27.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

PepsiCo Company Return On Equity Analysis

PepsiCo's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current PepsiCo Return On Equity

0.49

Most of PepsiCo's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, PepsiCo is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

PepsiCo Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for PepsiCo is extremely important. It helps to project a fair market value of PepsiCo Stock properly, considering its historical fundamentals such as Return On Equity. Since PepsiCo's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of PepsiCo's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of PepsiCo's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Good Will	Short Term Investments	Common Stock	Long Term Debt	Treasury Stock	Property Plant Equipment	Current Deferred Revenue	Net Tangible Assets	Total Permanent Equity	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.54	0.96	0.96	0.96	0.98	0.82	0.73	0.72	0.86	0.77	-0.1	-0.69	0.79	-0.21	0.83	-0.16	-0.48	-0.06	0.85	0.88	0.25	-0.25	0.18	0.55	-0.61	-0.44
Total Stockholder Equity	0.54		0.33	0.37	0.47	0.35	0.28	0.47	0.72	0.16	0.76	-0.38	-0.04	0.34	-0.04	0.66	0.08	-0.39	-0.68	0.25	0.72	0.58	-0.5	-0.1	0.07	-0.04	0.05
Net Debt	0.96	0.33		0.95	0.93	0.99	0.8	0.65	0.66	0.9	0.71	0.02	-0.73	0.84	-0.17	0.8	-0.33	-0.49	0.12	0.92	0.78	0.1	-0.13	0.22	0.63	-0.66	-0.41
Retained Earnings	0.96	0.37	0.95		0.94	0.98	0.78	0.61	0.65	0.92	0.69	-0.09	-0.82	0.81	-0.26	0.78	-0.2	-0.33	0.1	0.88	0.8	0.15	-0.12	0.13	0.51	-0.72	-0.42
Net Receivables	0.96	0.47	0.93	0.94		0.94	0.73	0.69	0.57	0.92	0.65	-0.21	-0.71	0.69	-0.28	0.81	-0.17	-0.53	0.06	0.8	0.79	0.16	-0.06	0.18	0.66	-0.72	-0.58
Total Liab	0.98	0.35	0.99	0.98	0.94		0.84	0.68	0.66	0.9	0.71	0.01	-0.77	0.83	-0.21	0.79	-0.22	-0.43	0.1	0.92	0.81	0.14	-0.16	0.23	0.58	-0.66	-0.44
Total Current Assets	0.82	0.28	0.8	0.78	0.73	0.84		0.81	0.51	0.64	0.56	0.43	-0.66	0.72	-0.24	0.55	0.11	-0.12	-0.06	0.77	0.79	0.32	-0.35	0.48	0.35	-0.23	-0.37
Short Term Debt	0.73	0.47	0.65	0.61	0.69	0.68	0.81		0.41	0.49	0.48	0.2	-0.33	0.41	-0.2	0.52	0.15	-0.27	-0.21	0.49	0.79	0.4	-0.38	0.62	0.41	-0.11	-0.53
Intangible Assets	0.72	0.72	0.66	0.65	0.57	0.66	0.51	0.41		0.39	0.97	-0.1	-0.32	0.8	0.03	0.81	-0.32	-0.35	-0.4	0.67	0.82	0.39	-0.54	-0.11	0.09	-0.27	0.25
Accounts Payable	0.86	0.16	0.9	0.92	0.92	0.9	0.64	0.49	0.39		0.47	-0.18	-0.83	0.68	-0.31	0.71	-0.27	-0.48	0.39	0.83	0.56	-0.14	0.22	0.2	0.74	-0.88	-0.6
Good Will	0.77	0.76	0.71	0.69	0.65	0.71	0.56	0.48	0.97	0.47		-0.1	-0.37	0.84	-0.02	0.9	-0.31	-0.43	-0.39	0.74	0.86	0.42	-0.44	-0.02	0.24	-0.31	0.18
Short Term Investments	-0.1	-0.38	0.02	-0.09	-0.21	0.01	0.43	0.2	-0.1	-0.18	-0.1		-0.02	0.16	-0.02	-0.24	0.06	0.47	0.08	0.11	0.01	0.1	-0.25	0.5	-0.24	0.48	0.21
Common Stock	-0.69	-0.04	-0.73	-0.82	-0.71	-0.77	-0.66	-0.33	-0.32	-0.83	-0.37	-0.02		-0.69	0.25	-0.53	0.06	0.11	-0.36	-0.8	-0.45	0.05	-0.24	-0.22	-0.5	0.69	0.42
Long Term Debt	0.79	0.34	0.84	0.81	0.69	0.83	0.72	0.41	0.8	0.68	0.84	0.16	-0.69		-0.09	0.83	-0.36	-0.31	0.03	0.96	0.72	0.17	-0.15	0.15	0.4	-0.48	0.06
Treasury Stock	-0.21	-0.04	-0.17	-0.26	-0.28	-0.21	-0.24	-0.2	0.03	-0.31	-0.02	-0.02	0.25	-0.09		-0.2	0.03	-0.06	-0.22	-0.13	-0.19	0.22	0.06	-0.2	0.01	0.29	0.22
Property Plant Equipment	0.83	0.66	0.8	0.78	0.81	0.79	0.55	0.52	0.81	0.71	0.9	-0.24	-0.53	0.83	-0.2		-0.32	-0.56	-0.11	0.82	0.79	0.17	-0.07	0.13	0.55	-0.58	-0.11
Current Deferred Revenue	-0.16	0.08	-0.33	-0.2	-0.17	-0.22	0.11	0.15	-0.32	-0.27	-0.31	0.06	0.06	-0.36	0.03	-0.32		0.4	-0.36	-0.31	-0.01	0.27	-0.01	0.09	-0.18	0.41	-0.27
Net Tangible Assets	-0.48	-0.39	-0.49	-0.33	-0.53	-0.43	-0.12	-0.27	-0.35	-0.48	-0.43	0.47	0.11	-0.31	-0.06	-0.56	0.4		-0.06	-0.4	-0.26	0.14	-0.07	-0.03	-0.75	0.46	0.31
Total Permanent Equity	-0.06	-0.68	0.12	0.1	0.06	0.1	-0.06	-0.21	-0.4	0.39	-0.39	0.08	-0.36	0.03	-0.22	-0.11	-0.36	-0.06		0.18	-0.43	-0.7	0.66	0.31	0.36	-0.56	-0.31
Long Term Debt Total	0.85	0.25	0.92	0.88	0.8	0.92	0.77	0.49	0.67	0.83	0.74	0.11	-0.8	0.96	-0.13	0.82	-0.31	-0.4	0.18		0.7	0.07	0.0	0.24	0.59	-0.62	-0.2
Capital Surpluse	0.88	0.72	0.78	0.8	0.79	0.81	0.79	0.79	0.82	0.56	0.86	0.01	-0.45	0.72	-0.19	0.79	-0.01	-0.26	-0.43	0.7		0.53	-0.52	0.17	0.25	-0.26	-0.19
Deferred Long Term Liab	0.25	0.58	0.1	0.15	0.16	0.14	0.32	0.4	0.39	-0.14	0.42	0.1	0.05	0.17	0.22	0.17	0.27	0.14	-0.7	0.07	0.53		-0.55	-0.04	-0.25	0.38	0.12
Long Term Investments	-0.25	-0.5	-0.13	-0.12	-0.06	-0.16	-0.35	-0.38	-0.54	0.22	-0.44	-0.25	-0.24	-0.15	0.06	-0.07	-0.01	-0.07	0.66	0.0	-0.52	-0.55		0.11	0.49	-0.43	-0.3
Short Long Term Debt	0.18	-0.1	0.22	0.13	0.18	0.23	0.48	0.62	-0.11	0.2	-0.02	0.5	-0.22	0.15	-0.2	0.13	0.09	-0.03	0.31	0.24	0.17	-0.04	0.11		0.35	0.06	-0.35
Net Invested Capital	0.55	0.07	0.63	0.51	0.66	0.58	0.35	0.41	0.09	0.74	0.24	-0.24	-0.5	0.4	0.01	0.55	-0.18	-0.75	0.36	0.59	0.25	-0.25	0.49	0.35		-0.62	-0.64
Net Working Capital	-0.61	-0.04	-0.66	-0.72	-0.72	-0.66	-0.23	-0.11	-0.27	-0.88	-0.31	0.48	0.69	-0.48	0.29	-0.58	0.41	0.46	-0.56	-0.62	-0.26	0.38	-0.43	0.06	-0.62		0.46
Capital Stock	-0.44	0.05	-0.41	-0.42	-0.58	-0.44	-0.37	-0.53	0.25	-0.6	0.18	0.21	0.42	0.06	0.22	-0.11	-0.27	0.31	-0.31	-0.2	-0.19	0.12	-0.3	-0.35	-0.64	0.46

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PepsiCo Return On Equity Historical Pattern

Today, most investors in PepsiCo Stock are looking for potential investment opportunities by analyzing not only static indicators but also various PepsiCo's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of PepsiCo return on equity as a starting point in their analysis.

PepsiCo Return On Equity

Timeline

For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Competition

Predict PepsiCo

Return On Equity Over Time

PepsiCo Total Stockholder Equity

Total Stockholder Equity

12.34 Billion

At this time, PepsiCo's Total Stockholder Equity is relatively stable compared to the past year.

Based on the latest financial disclosure, PepsiCo has a Return On Equity of 0.4882. This is 81.51% lower than that of the Beverages sector and significantly higher than that of the Consumer Staples industry. The return on equity for all United States stocks is notably lower than that of the firm.

PepsiCo Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses PepsiCo's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of PepsiCo could also be used in its relative valuation, which is a method of valuing PepsiCo by comparing valuation metrics of similar companies.

PepsiCo is currently under evaluation in return on equity category among its peers.

PepsiCo ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, PepsiCo's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to PepsiCo's managers, analysts, and investors.

Environmental

Governance

Social

PepsiCo Fundamentals

	Return On Equity	0.49
	Return On Asset	0.0872
	Profit Margin	0.10 %
	Operating Margin	0.18 %
	Current Valuation	254.75 B
	Shares Outstanding	1.37 B
	Shares Owned By Insiders	0.15 %
	Shares Owned By Institutions	77.44 %
	Number Of Shares Shorted	18.59 M
	Price To Earning	26.34 X
	Price To Book	11.20 X
	Price To Sales	2.37 X
	Revenue	91.47 B
	Gross Profit	46.05 B
	EBITDA	15.21 B
	Net Income	9.07 B
	Cash And Equivalents	6.74 B
	Cash Per Share	4.89 X
	Total Debt	44.66 B
	Debt To Equity	2.05 %
	Current Ratio	0.92 X
	Book Value Per Share	14.17 X
	Cash Flow From Operations	13.44 B
	Short Ratio	3.55 X
	Earnings Per Share	6.78 X
	Price To Earnings To Growth	1.89 X
	Target Price	181.94
	Number Of Employees	318 K
	Beta	0.54
	Market Capitalization	217.79 B
	Total Asset	100.5 B
	Retained Earnings	70.03 B
	Working Capital	(4.7 B)
	Current Asset	23.03 B
	Current Liabilities	17.58 B
	Annual Yield	0.03 %
	Five Year Return	2.82 %
	Net Asset	100.5 B
	Last Dividend Paid	5.24

About PepsiCo Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze PepsiCo's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of PepsiCo using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of PepsiCo based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with PepsiCo

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PepsiCo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PepsiCo will appreciate offsetting losses from the drop in the long position's value.

Moving together with PepsiCo Stock

0.82	KO	Coca Cola Aggressive Push	Pair Corr
0.81	KDP	Keurig Dr Pepper	Pair Corr
0.64	KOF	Coca Cola Femsa	Pair Corr

Moving against PepsiCo Stock

0.82	COCO	Vita Coco	Pair Corr
0.76	ZVIA	Zevia Pbc	Pair Corr
0.69	KR	Kroger Company Earnings Call This Week	Pair Corr
0.67	STKL	SunOpta	Pair Corr
0.64	FIZZ	National Beverage Corp	Pair Corr

The ability to find closely correlated positions to PepsiCo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PepsiCo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PepsiCo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PepsiCo to buy it.

The correlation of PepsiCo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PepsiCo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PepsiCo moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for PepsiCo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional 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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