On the stock market since 1972, it operates in the everyday-essentials business. It has 306,000 employees. Now — the numbers.
This is an established company with proven profits.
Revenue is spread across several lines; no single product carries the company.
The gap is $40.4B. In times of high interest rates, a gap like that can squeeze a company.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
Clearly below the class average.
This grade is a blend: the profit side is strong, the sales tempo slow.
Clearly below the class average.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
angles, checked one by one.
The 3 that stand out are on screen; the rest came back neutral.
The council scores out of 10; report-card grades are out of 100.
The stock trades 28% below its peak. The market has trimmed its expectations for the company.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
It pays out $5.75 per share each year — regular cash for whoever holds the stock.
Over the last 3 years, sales grew only 3% a year on average — the report card’s higher growth grade leans on profit power instead.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 32/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 43/100.
On our five-subject report card, PEP sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: PEP is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.