On Dec. 8, Pepsico, Inc. (PEP, Financial) informed its shareholders that it is moving its stock listing to the Nasdaq from the New York Stock Exchange.
On the Nasdaq, Pepsico’s ordinary stock will continue trading as PEP, starting on Dec. 20.
Jamie Caulfield, Pepsico’s senior vice president of investor relations, commented, "We believe this move will provide us with greater cost-effectiveness and access to Nasdaq's unique portfolio of tools and services to connect with our investors more efficiently.”
On Dec. 8, Pepsico closed at $116.57 per share, with a market capitalization of $165.78 billion, a price-book (P/B) ratio of 12.53, a price-sales (P/S) ratio of 2.61 and a price-earnings (P/E) ratio of 24.11.
The forward price-earning ratio is 20.83.
The average target price is $123.05 per share and recommendation rating is 2.3 out of 5.
For the next quarter and full fiscal 2017, analysts forecast Pepsico will report EPS of $1.30 for the quarter and EPS of $5.22 for the entire year.
These estimates come on the back of revenue that analysts have forecasted at $19.41 billion for the next quarter, nearly flat from the comparable quarter of 2016, and $63.41 billion for full fiscal 2017, a 1% increase.
The following two charts illustrate Pepsico’s quarterly revenues over the last five quarters (chart 1) and annual revenues over the last five fiscal years (chart 2).
Chart 1. Pepsico’s sales over the last five quarters:
Chart 2. Pepsico’s sales over the last five fiscal years:
As is illustrated in the chart above, annual sales went down slightly starting 2015.
However, for the fiscal year 2017 through fiscal year 2018, analysts foresee 7.30% growth in sales to $65.6 billion.Ă‚
The stock is up-trending on the market and has gained 11.4% so far this year, underperforming the S&P 500 index by 6.05%.
Source: Yahoo Finance
Pepsico is currently trading above the Peter Lynch earnings lines, both with and without NRI:
Even though the stock may appear a bit overvalued by the stock market, investors can't not make space in their portfolios for Pepsico, a company that is regularly distributing a quarterly cash dividend of 80.5 cents to its shareholders. Also, if this distribution is held constant by the beverage company for the following three quarters, the annual dividend of $3.22 will have a forward yield of 2.71%, which is nearly 90 basis points higher that the S&P 500 dividend yield of 1.82%.
The 52-week range is $101.06 to $119.39.
Disclosure: No positions in Pepsico.
