Qualtix Stock Brief
PepsiCo, Inc. (PEP) stock analysis: business quality, valuation, and entry timing
PepsiCo makes snacks and beverages, including Frito-Lay, Pepsi, Gatorade, and Quaker. Its large snack business adds stability to the beverage side, while input costs and volumes drive margins. Public Qualtix model snapshot from 2026-10-26 for PEP: business quality 59/100, a mixed model reading and valuation Cheap. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates PEP with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
PEP public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 2.4% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 10.7% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 15.3% | Profitability margin | FMP, computed |
| Gross margin | 54.2% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 20.3% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 48.9% | Return on equity | FMP, computed |
| Cash and debt | Cash and investments $11.2B / Debt $51.9B | Balance-sheet context | FMP, reported |
| TTM P/E | 17.0x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 59/100, a mixed model reading.
- Valuation is currently labeled Cheap, so price is a supporting part of the model view.
Today's verdict
- Today's model verdict and Entry Timing for PEP update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-09-05.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Valuation is labeled Cheap by the current model view.
- Beta of 0.36 suggests lower market sensitivity than higher-beta alternatives.
What weakens the current view
- Business quality remains below the model's stronger-company threshold (59/100).
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Start with the weaker Business Quality signal (59/100): review revenue durability, margins, cash generation, and balance-sheet pressure.
- Check whether the Cheap valuation label reflects a real mismatch or a business concern that deserves more research.
- Compare PEP with KO and PG to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.