Guru Jim Simons (Trades, Portfolio) more than doubled his stake in Pepsico Inc. (PEP, Financial) with the purchase of 1,940,000 shares in the first quarter.
PepsiCo is a global food and beverage company that was founded in 1965. The company produces products such as Pepsi Cola, Quaker Oats, Dole juice, Tostitos, Doritos, Aunt Jemima and Tropicana juice.
PepsiCo has a market cap of $150.96 billion, a P/E ratio of 29.76, an enterprise value of $174.06 billion and a P/B ratio of 13.65.
According to GuruFocus PepsiCo has a 4.5 predictability rating with a 8/10 Financial Strength rating and a 8/10 profitability and growth rating with an operating margin of 13.04% ranking the company above 74% of the 108 companies in the Global Beverages Soft Drinks industry.
PepsiCo is also traded in Argentina, Brazil, Germany, Mexico, Switzerland, Netherlands and the U.K.
Simons may have decided to double his stake in PepsiCo for the following reasons:
- The company had $63 billion in net revenue in 2015.
- The company has 51 years of experience in its industry.
- The company has grown to a market cap of $150.96 billion.
- Revenue growth has increased at an average rate of 10.90% over the previous 10 years.
- Free Cash Flow Growth has increased 10.90% over the previous five years.
Below is a Peter Lynch Chart for PepsiCo.
Simons founded the hedge fund Renaissance Technologies in 1982, which he ran for 28 years before retiring in 2010. Simons remains at Renaissance Technologies, working in a less stressful position as the nonexecutive chairman.
Cheers to your investment success.
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