PEP
ACCE-researchedOverview
ACCE thesis
PepsiCo manufactures and distributes a portfolio of beverage and convenient food brands across 200+ countries, with Frito-Lay North America alone generating over $23B in annual revenue at margins that embarrass most packaged food peers. The company's distribution infrastructure - particularly its direct-store-delivery network - functions as a structural moat that private label and emerging brands cannot replicate at scale. The near-term catalyst is margin recovery: input cost deflation in grains and oils is flowing through the P&L after two years of compression, and management has guided for high-single-digit EPS growth in 2024. At a forward P/E of 16.8x, the stock trades at a meaningful discount to its five-year average of roughly 24x, reflecting transient volume softness from consumer trade-down rather than any deterioration in the franchise itself. A 43.9% ROE with the balance sheet leverage PepsiCo carries tells you this business generates exceptional returns on the underlying equity - the current price is a function of sentiment, not fundamentals.
- moderateACCE Momentum score collapseMomentum fell 5 points (62→57) in 90 days. M:31 is weak relative to other pillars, signalling recent underperformance or sentiment shift.
- moderateElevated leverage with modest FCF coverageDebt/Equity 2.41 is high. FCF $7.7B covers debt servicing but leaves limited cushion for downturns or capital returns.
- moderateEarnings spike may not be sustainableYoY earnings +137% is outsized relative to revenue +6.4%. Likely one-time gains or accounting items; normalisation risk ahead.
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
Price
Valuation
INVESTORSix independent models converge on one confidence-weighted fair value, with full methodology and editable assumptions.
- +All six models: DCF, P/E and EV/EBITDA comps, Graham, dividend discount, residual income
- +Scenario bands, sensitivity tornado, and the 5-year historical valuation range
- +Editable DCF workbench with saved scenarios
Quality
INVESTORThe full quality picture: conviction breakdown, earnings quality, score history, and backtested returns.
- +Conviction score breakdown and earnings-quality grade
- +Growth / value / quality / momentum component scores
- +90-day score history and score-threshold backtests
Analysts
Wall Street consensus
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
- +Price-target low / average / high vs the current price, with implied upside
- +Forward revenue and EPS consensus by fiscal year
- +ACCE fair-value models lined up against the Street
Smart Money
PROFollow the institutions: 13F position changes, insider trades, and active 13D activist filings.
- +Quarter-over-quarter institutional position changes
- +Recent open-market insider transactions
- +Active 13D activist filings and top holders
Compare
Where it sits vs peers
Algorithmic peers (6)
| Ticker | Company | Mcap | P/E | ROE | D/E | Yield | Quality | |
|---|---|---|---|---|---|---|---|---|
| MNST | Monster Beverage Corporation | $87.6B | 41.4 | 25.7% | -0.25 | 0.0% | - | Compare |
| KO | Coca-Cola Company (The) Common Stock | $379.7B | 26.5 | 42.0% | 1.41 | 2.4% | - | Compare |
| 9633.HK | Nongfu Spring Co., Ltd. | $55.3B | 23.4 | 50.0% | 0.11 | 0.0% | - | Compare |
| CCEP.L | Coca-Cola Europacific Partners PLC | $44.1B | 19.7 | 23.5% | 1.28 | 2.7% | - | Compare |
| CCEP | Coca-Cola Europacific Partners plc Ordinary Shares | $43.9B | 19.6 | 23.5% | 1.28 | 2.4% | - | Compare |
| KDP | Keurig Dr Pepper Inc. Common Stock | $42.1B | 31.3 | 5.1% | 0.63 | 2.9% | - | Compare |
Sector report card
Where PEP ranks against its sector peers on each metric.
News and Record
Press releases mentioning this company
- Business Wire•Sep 11, 2026ISG Announces 2026 ISG Women in Digital Awards Winners for the Americas
- PR Newswire•Sep 10, 2026PEPSICO BRINGS TOGETHER FARMERS AND AGRICULTURE EXPERTS FROM MORE THAN 35 COUNTRIES TO STRENGTHEN POTATO FARMING
- PR Newswire•Sep 10, 2026Meat N' Bone, Building America's Premium Protein Brand, Announces Strategic Advisory Committee to Support Explosive Growth
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Recent performance
SEC filings
Recent ACCE blog coverage
- $PEP Posts 8.8% EPS Growth in Quarter Reported April 16PepsiCo reported EPS of $1.61 vs $1.48 a year ago, an 8.8% gain. Revenue grew 8.5% YoY. ACCE score sits at 64/100. Full recap inside.2026-07-09
- $PEP New Pick: Dividend King Near Multi-Year Valuation LowPepsiCo earns a new pick alert at $144.27 with a 4.0% yield, 62/100 ACCE score, and Elliott Management pushing cost actions ahead of mid-July earnings.2026-06-15