PepsiCo (PEP) has a market cap of $156.3 billion. It rose by 0.12% and closed at $108.72 per share on August 15, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.54%, -0.86%, and 10.4%, respectively, on the same day.
Notably, PEP is now trading 0.10% above its 20-day moving average, 2.2% above its 50-day moving average, and 7.6% above its 200-day moving average.
Related ETFs and peers
The SPDR S&P 500 Growth ETF (SPYG) invests 0.92% of its holdings in PepsiCo and tracks an index of primarily large-cap growth stocks. The index selects companies from the S&P 500 Index based on three growth factors. The YTD price movement of SPYG was 6.8% on August 15.
The Consumer Staples Select Sector SPDR Fund (XLP) invests 4.5% of its holdings in PepsiCo and tracks a market-cap-weighted index of consumer staples stocks drawn from the S&P 500.
The market caps of PepsiCo’s competitors are as follows:
Latest news on PepsiCo
In a press release on August 15, 2016, PepsiCo stated: “Twitter and Pepsi announced today that the beverage brand will be the exclusive global launch partner for Twitter’s newest ad product, Promoted #Stickers. The campaign marks the largest partnership between the two brands to date and is a result of months of collaboration.”
The company added that “as part of the partnership, Pepsi will secure featured placement in the #Stickers library in ten countries across five continents, including Argentina, Canada, Egypt, India, Mexico, Russia, Saudi Arabia, Spain, United Arab Emirates, and the United States.”
PepsiCo’s performance in fiscal 2Q16
PepsiCo reported fiscal 2Q16 net revenues of $15.4 billion, which is a fall of 3.1% from the net revenues of $15.9 billion in fiscal 2Q15. Revenue from Frito-Lay North America, Quaker Foods North America, and North America Beverages rose by 3.2%, 2.7%, and 0.63%, respectively.
Revenues from its Latin America, Europe Sub-Saharan Africa, and Asia, Middle East and North Africa segments fell by 22.8%, 5.4%, and 1.5%, respectively, between fiscal 2Q15 and fiscal 2Q16. The company’s gross profit margin and operating profit rose by 2.0% and 2.2%, respectively.
Net income and EPS
In fiscal 2Q16, PepsiCo’s net income and EPS (earnings per share) rose to $2.01 billion and $1.38, respectively, as compared to $1.98 billion and $1.33 in fiscal 2Q15.
PEP’s cash and cash equivalents and inventories rose by 6.0% and 28.2%, respectively, between fiscal 4Q15 and fiscal 1Q16. In fiscal 2Q16, its current ratio and debt-to-equity ratio rose to 1.4x and 4.9x, respectively, as compared to 1.3x and 4.8x in fiscal 4Q15.
PepsiCo has declared a quarterly dividend of ~$0.75 per share on its common stock. The dividend will be paid on September 30, 2016, to shareholders of record at the close of business on September 2, 2016.
PepsiCo (PEP) made the following projections for fiscal 2016:
- core EPS of $4.71
- organic revenue growth of ~4%, which excludes the impact of the 53rd week and structural changes and includes the deconsolidation of its Venezuelan operations
- productivity savings of ~$1 billion
- more than $10 billion in cash flow from operating activities
- free cash flow of more than $7 billion, which excludes certain items
- net capital spending of ~$3 billion
- a return of ~$7 billion to its shareholders through dividends of ~$4 billion and share repurchases of ~$3 billion.
In the next part, we’ll take a look at Lululemon Athletica.