PepsiCo Inc. (PEP) – Diversifying its product portfolio for budding market growth

PepsiCo Inc. (PEP) (Q2FY23)

Stock performance: PepsiCo stock gave returns of -3.3% and 0.1% in the period of three months and one year. The stock has a 52-week high of $196.88 and a 52-week low of $160.98. The stock gave returns of 28.5% and CAGR of 8.7% over a period of three years. The stock had a 200-Day Moving Average of $181.73 and a 50-Day Moving Average of $183.98.

Quarter Performance: In Q2FY23, PEP’s revenue increased by 10% to $22.32bn from $20.23bn in Q2FY22 and gross profit increased to 55%, compared to 53% in the same period.

Operating income increased by 88% to $3.66bn in Q2FY23 from $2.08bn Q2FY22.

Guidance: In FY23, PEP expects 10% in organic revenue growth and also expects a core constant currency EPS growth to be 12%. The company expects an effective tax rate of 20% and a core EPS of ~$7.47.

Highlights

Pepsi is actively investing in innovation to meet changing consumer preferences. It is expanding the zero-sugar options across popular brands like Pepsi, Mountain Dew, and Gatorade and updating their ready-to-drink teas and sparkling beverages to offer healthier choices and it also entering the carbonated soft drink market with a new lemon-lime soda called STARRY.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 36

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