How to buy PepsiCo shares | $131
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PepsiCo, Inc is a beverages—non-alcoholic business with stocks listed in the US. PepsiCo shares (PEP) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was US$131 – a decrease of 1.65% over the previous week.
How to buy shares in PepsiCo
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for PepsiCo. Find the share by name or ticker symbol: PEP. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until PepsiCo reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$131, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of PepsiCo, depending on your broker.
- Check in on your investment. Congratulations, you own a part of PepsiCo. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- PepsiCo key stats
- Compare share trading platforms
- Is PepsiCo stock a buy or sell?
- PepsiCo performance over time
- Can I short PepsiCo shares?
- Is PepsiCo suitable for ethical investing?
- Are PepsiCo shares over-valued?
- PepsiCo's financials
- How volatile are PepsiCo shares?
- Does PepsiCo pay a dividend?
- Have PepsiCo shares ever split?
- Other common questions
How has coronavirus impacted PepsiCo's share price?
Since the stock market crash in March caused by coronavirus, PepsiCo's share price has had significant negative movement.
Its last market close was US$131, which is 10.18% down on its pre-crash value of US$145.85 and 29.17% up on the lowest point reached during the March crash when the shares fell as low as US$101.42.
If you had bought US$1,000 worth of PepsiCo shares at the start of February 2020, those shares would have been worth US$738.36 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$919.62.
PepsiCo share priceUse our graph to track the performance of PEP stocks over time.
PepsiCo shares at a glance
|Latest market close||USD$131|
|52-week range||USD$109.365 - USD$147.2|
|50-day moving average||USD$137.0832|
|200-day moving average||USD$132.316|
|Dividend yield||USD$4.09 (3.07%)|
|Earnings per share (TTM)||USD$4.903|
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Is it a good time to buy PepsiCo stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
PepsiCo price performance over time
|1 week (2020-09-14)||-4.15%|
|1 month (2020-08-24)||-4.82%|
|3 months (2020-06-20)||N/A|
|6 months (2020-03-23)||24.55%|
|1 year (2019-09-20)||-2.75%|
|2 years (2018-09-21)||14.00%|
|3 years (2017-09-21)||16.13%|
|5 years (2015-09-21)||39.79%|
Is PepsiCo under- or over-valued?
Valuing PepsiCo stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of PepsiCo's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
PepsiCo's P/E ratio
PepsiCo's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, PepsiCo shares trade at around 27x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
PepsiCo's PEG ratio
PepsiCo's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.3851. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into PepsiCo's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
PepsiCo's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$12.4 billion (£9.7 billion).
The EBITDA is a measure of a PepsiCo's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$67.7 billion|
|Operating margin TTM||15.43%|
|Gross profit TTM||US$37.2 billion|
|Return on assets TTM||7.93%|
|Return on equity TTM||51.81%|
|Market capitalisation||US$182 billion|
TTM: trailing 12 months
Shorting PepsiCo shares
There are currently 8.8 million PepsiCo shares held short by investors – that's known as PepsiCo's "short interest". This figure is 1.9% down from 9.0 million last month.
There are a few different ways that this level of interest in shorting PepsiCo shares can be evaluated.
PepsiCo's "short interest ratio" (SIR)
PepsiCo's "short interest ratio" (SIR) is the quantity of PepsiCo shares currently shorted divided by the average quantity of PepsiCo shares traded daily (recently around 4.7 million). PepsiCo's SIR currently stands at 1.88. In other words for every 100,000 PepsiCo shares traded daily on the market, roughly 1880 shares are currently held short.
However PepsiCo's short interest can also be evaluated against the total number of PepsiCo shares, or, against the total number of tradable PepsiCo shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case PepsiCo's short interest could be expressed as 0% of the outstanding shares (for every 100,000 PepsiCo shares in existence, roughly 0 shares are currently held short) or 0.0045% of the tradable shares (for every 100,000 tradable PepsiCo shares, roughly 5 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against PepsiCo.
Find out more about how you can short PepsiCo stock.
PepsiCo's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like PepsiCo.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
PepsiCo's total ESG risk score
Total ESG risk: 24.67
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and PepsiCo's overall score of 24.67 (as at 07/31/2020) is pretty good – landing it in it in the 34th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like PepsiCo is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
PepsiCo's environmental score
Environmental score: 11.93/100
PepsiCo's environmental score of 11.93 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that PepsiCo is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
PepsiCo's social score
Social score: 11.8/100
PepsiCo's social score of 11.8 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that PepsiCo is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
PepsiCo's governance score
Governance score: 8.94/100
PepsiCo's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that PepsiCo is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
PepsiCo's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. PepsiCo scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that PepsiCo hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||24.67|
|Total ESG percentile||33.76|
|Environmental score percentile||6|
|Social score percentile||6|
|Governance score percentile||6|
|Level of controversy||3|
PepsiCo share dividends
Dividend payout ratio: 79.34% of net profits
Recently PepsiCo has paid out, on average, around 79.34% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.07% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), PepsiCo shareholders could enjoy a 3.07% return on their shares, in the form of dividend payments. In PepsiCo's case, that would currently equate to about $4.09 per share.
PepsiCo's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
PepsiCo's most recent dividend payout was on 29 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 2 September 2020 (the "ex-dividend date").
Have PepsiCo's shares ever split?
PepsiCo's shares were split on a 2:1 basis on 28 May 1996. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your PepsiCo shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for PepsiCo shares which in turn could have impacted PepsiCo's share price.
PepsiCo share price volatility
Over the last 12 months, PepsiCo's shares have ranged in value from as little as US$109.365 up to US$147.2. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while PepsiCo's is 0.5753. This would suggest that PepsiCo's shares are less volatile than average (for this exchange).
PepsiCo, Inc. operates as a food and beverage company worldwide. The company operates through seven segments: FLNA, QFNA, PBNA, LatAm, Europe, AMESA, and APAC. It offers branded dips, cheese-flavored snacks, and tortillas, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; and dairy products. The company provides its products primarily under the Cheetos, Doritos, Fritos, Lay's, Ruffles, Tostitos, Aunt Jemima, Cap'n crunch, Life, Pasta Roni, Quaker Chewy, Quaker, Rice-A-Roni, Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Mountain Dew, Pepsi, Propel, Sierra Mist, Tropicana, Emperador, Marias Gamesa, Rosquinhas Mabel, Sabritas, Saladitas, 7UP, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, Pepsi Black, San Carlos, Toddy, Agusha, Chudo, and Domik v Derevne brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is headquartered in Purchase, New York.
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