PepsiCo, Inc. (PEP)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

PepsiCo is the kind of business I understand: it sells drinks and convenient foods through six segments to customers worldwide. Its scale, brands and distribution network create a durable competitive advantage, though this is not a fast-growth story. In fiscal Q3 2026, the quarter ended 2026-09-05, revenue was $25.3B and net income $3.0B, versus $23.9B and $2.6B in fiscal Q3 2025, so the latest quarter improved. Full-year figures are more mixed: FY2025 revenue was $93.9B against $91.9B in FY2024, but net income fell to $8.2B from $9.6B. FairStock calls it a slow grower, citing 3.0% annual profit growth and 5.9% revenue growth over five years. Cash generation is real: trailing free cash flow was $10.5B, a 5.7% FCF yield, and the dividend yield is 4.56%. The balance sheet needs respect: debt-to-equity is 2.39 and ROCE is 8.93%, though ROE is 51.51% and Piotroski is 9/9. At the 2026-10-26 close of $135.46, FairStock's P/E is 17.75, P/B is 8.37, EV/EBITDA is 11.74, PEG is 1.04, and its FairStock score is 63/100. The Graham Number is $53.00, so the price is far above that conservative value marker. I see a steady, defensive company with a 0.36 beta, not a bargain; the earnings multiple is reasonable, but asset-based and debt-adjusted value is not compelling.

In plain English: PepsiCo sells drinks and convenient foods around the world. The business is profitable and produces steady cash, but sales growth is modest and it uses a lot of debt. At $135.46, the shares look closer to fairly priced than cheap when compared with its profits and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-05) · fiscal Q2 2026 10-Q (period ended 2026-06-13) · fiscal Q1 2026 10-Q (period ended 2026-03-21) · fiscal Q3 2025 10-Q (period ended 2025-09-06) · FY2025 10-K (period ended 2025-12-27) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer