The share price of PepsiCo, Inc. [NASDAQ: PEP] inclined by $129.12, presently trading at $130.72. The company’s shares saw 25.06% gains compared to the lowest price in the period of the last 52 weeks, set at $104.53 recorded on 15/08/2019. The last few days have been benevolent to the share price as PEP jumped by +0.97% during the last week, even though the stock is still down by -0.38% compared to 1.25 of all time high it touched on 08/15/19. However, the stock had a strong performance during the past 3 months, roughly losing -1.55%, while additionally gaining 15.58% during the last 12 months. PepsiCo, Inc. is said to have a 12-month price target set at $134.38. That means that the stock has a strong potential to acquire 3.66% increase from the current trading price.
PepsiCo, Inc. [NASDAQ:PEP]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to PepsiCo, Inc. [PEP], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of December. On average, stock market experts give PEP an Hold rating. Its stock price has been found in the range of 104.53 to 135.24. This is compared to its latest closing price of $129.12.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for PepsiCo, Inc. [PEP] is sitting at 2.57. This is compared to 1 month ago, when its average rating was 2.57.
For the quarter ending in Jun-19 PepsiCo, Inc. [PEP] generated $16.45 billion in sales. That’s 0.14% higher than the average estimate of $16.43 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Thu 3 Oct (In 49 Days).
Fundamental Analysis of PepsiCo, Inc. [PEP]
Now let’s turn to look at profitability: with a current Operating Margin for PepsiCo, Inc. [PEP] sitting at +16.08 and its Gross Margin at +54.55, this company’s Net Margin is now 19.60%. These measurements indicate that PepsiCo, Inc. [PEP] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 21.40, and its Return on Invested Capital has reached 28.70%. Its Return on Equity is 98.52, and its Return on Assets is 15.70. These metrics all suggest that PepsiCo, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, PepsiCo, Inc. [PEP] has generated a Total Debt to Total Equity ratio of 222.63. Similarly, its Total Debt to Total Capital is 69.00, while its Total Debt to Total Assets stands at 41.63. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 194.90, and its Long-Term Debt to Total Capital is 60.41. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 15.72 and its Total Debt to EBITDA Value is 2.53. The Enterprise Value to Sales for this firm is now 3.08, and its Total Debt to Enterprise Value stands at 0.18. PepsiCo, Inc. [PEP] has a Price to Book Ratio of 10.71, a Price to Cash Flow Ratio of 16.70 and P/E Ratio of 14.49. These metrics all suggest that PepsiCo, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, PepsiCo, Inc. [PEP] earns $242,172 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.13 and its Total Asset Turnover is 0.81. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.85 and its Current Ratio is 0.99. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
PepsiCo, Inc. [PEP] has 1.41B shares outstanding, amounting to a total market cap of $184.01B. Its stock price has been found in the range of 104.53 to 135.24. At its current price, it has moved down by -3.34% from its 52-week high, and it has moved up 25.06% from its 52-week low.
This stock’s Beta value is currently 0.59, which indicates that it is 1.51% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.10. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is PepsiCo, Inc. [PEP] a Reliable Buy?
Shares of PepsiCo, Inc. [PEP], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.