PepsiCo’s price movement
PepsiCo (PEP) has a market cap of $147.5 billion. Its stock rose by 0.15% to close at $102.13 per share on June 27, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -1.2%, 0.98%, and 3.7%, respectively, on the same day. PEP is trading 0.70% below its 20-day moving average, 0.39% below its 50-day moving average, and 3.5% above its 200-day moving average.
Related ETF and peers
The SPDR S&P Dividend ETF (SDY) invests 1.2% of its holdings in PepsiCo. The ETF tracks a yield-weighted index of 50 dividend-paying companies from the S&P 1500 Composite Index that have increased their dividend for at least 20 consecutive years. The YTD price movement of SDY was 9.5% on June 27.
The market caps of PepsiCo’s competitors are as follows:
PepsiCo announced new plans
To boost sales, PepsiCo is planning to bring back aspartame, an artificial sweetener, in its Diet Pepsi. “Diet Pepsi Classic Sweetener Blend,” the new aspartame-sweetened drink, will come on the market in September.
Reuters stated, “PepsiCo will also rebrand ‘Pepsi Max’ as ‘Pepsi Zero Sugar’ to make it clear it is a diet drink. Pepsi Max competes with Coca-Cola Co.’s Coke Zero.”
PepsiCo’s performance in fiscal 1Q16
PepsiCo (PEP) reported fiscal 1Q16 net revenue of $11.9 billion, a fall of 2.9% compared to net revenues of $12.2 billion in fiscal 1Q15. The company’s cost of sales as a percentage of net revenues and operating profit fell by 3.6% and 9.9%, respectively, in fiscal 1Q16 compared to fiscal 1Q15.
Its net income and EPS (earnings per share) fell to $931.0 million and $0.64, respectively, in fiscal 1Q16, compared to $1.2 million and $0.81, respectively, in fiscal 1Q15.
PepsiCo’s cash and cash equivalents fell by 10.7%, and its inventories rose by 18.3% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio and debt-to-equity ratio rose to 1.4x and 5.2x, respectively, in fiscal 1Q16, compared to 1.3x and 4.8x, respectively, in fiscal 4Q15.
In the next article in this series, we’ll discuss McCormick & Company’s new target price.