Home Sectors Consumer Defensive Stock Valuation: PepsiCo (NASDAQ: PEP)

Stock Valuation: PepsiCo (NASDAQ: PEP)

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PepsiCo trades as part of the non-alcoholic beverages industry and trades as part of the consumer defensive sector. The company CEO is Ramon Laguarta. PepsiCo Inc is a food, snack and beverage company. It manufactures, markets, distributes and sells convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories.

Previous Intraday Trading Performance:

The PEP stock showed a previous change of -0.04% with an open at 113.16 and a close of 112.97. It reached an intraday high of 113.58 and a low of 112.64.

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Liquidity:

The stock has a market cap of $159.5b with 1.4b shares outstanding, of which the float is 1.4b shares. Trading volume reached 4,700,292 shares compared to its average volume of 5,211,500 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, PepsiCo shares returned 0.06% and in the past 30 trading days it returned 2.36%. Over three months, it changed -2.65%. In one year it has changed 4.28% and within that year its 52-week high was 122.00 and its 52-week low was 95.94. PEP stock is 17.75% above its 52 Week Low.

Our calculations show a 200 day moving average of 108.70 and a 50 day moving average of 112.03. Currently PEP stock is trading 3.93% above its 200 day moving average and may be a good opportunity to buy.

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Earnings:

The last annual fiscal EPS for the company was reported at 3.37 that ended on 31st of December 2017, which according to the previous close, that is a PE of 33.52. Based on 7 analyst estimates, the consensus EPS for the next quarter is 1.49. The TTM EPS is 5.47, which comes to a TTM PE of 20.65. Historically, the PE high was 33.52 and the PE low was 17.20. If the stock reached its PE low, that would represent a price of 94.10, which is a decrease of -16.71%.

The following are the last four quarter reported earnings per share:
09-30-2018:  1.59
06-30-2018:  1.61
03-31-2018:  0.96
12-31-2017:  1.31

The dividend per share is currently 3.71, which is a dividend yield of 3.28%.

Base on our calculations, the intrinsic value per share is 88.64, which means it may be overvalued by -27.45%

Indicators to Watch:

Based on the latest filings, there is 0.40% of insider ownership and 103.80% of institutional ownership. Short-interest is 0, which is 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 0.00.

The current calculated beta is 0.64

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 42.04%, return on assets is 6.51%, profit margin is 12.61%, price-to-sales is 3.53 and price-to-book is 15.51.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 1  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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