PepsiCo (PEP)

PepsiCo (PEP) stock last appeared on the site back in April. At the time, the snacks and beverage giant had just released financial results covering its first quarter. The numbers came in strong, with organic sales growth at just under 8% and profit per share (“EPS”) growth at 10% versus the prior year. The shares traded for $132 each back then, equal to around 24x…

I note that PepsiCo (PEP) released quarterly results earlier this week. COVID-19 aside, the snack and beverage giant looks in great shape. We shall get to the virus later, but for now let’s appreciate the numbers the company put out last quarter. Revenue came in 7.7% higher than in 1Q19, or 7.9% on an organic basis (i.e. after stripping out currency issues and the like). Pretty…

The cumulative retained earnings of PepsiCo (PEP) stood at just over $61.5b at the end of its Q3 2020. What the heck does that mean, I hear you say. Well, put another way, even after paying out what must amount to tens of billions of dollars in cash dividends over the years, PepsiCo has still managed to net itself over $60b in excess profits during…

On the face of it, PepsiCo (PEP) stock’s recent performance has been very similar to that of other consumer defensives. That is to say, earnings growth has been fairly subdued, with shareholder returns primarily a result of certain ‘unsustainable’ measures. What do I mean by this? Well, the most common criticisms include dividend increases in excess of earnings growth, debt funded stock buybacks, and market…