PepsiCo (MEX:PEP) Beneish M-Score : -2.67 (As of Mar. 26, 2025)

View and export this data going back to 1919. Start your Free Trial

What is PepsiCo Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PepsiCo's Beneish M-Score or its related term are showing as below:

MEX:PEP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.64 Max: -2.18
Current: -2.67

During the past 13 years, the highest Beneish M-Score of PepsiCo was -2.18. The lowest was -2.86. And the median was -2.64.

PepsiCo Beneish M-Score Historical Data

The historical data trend for PepsiCo's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PepsiCo Beneish M-Score Chart

PepsiCo Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

Get a 7-Day Free Trial

-2.62

-2.65

-2.45

-2.63

-2.67

PepsiCo Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.63	-2.60	-2.58	-2.56	-2.67

Competitive Comparison of PepsiCo's Beneish M-Score

For the Beverages - Non-Alcoholic subindustry, PepsiCo's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

PepsiCo's Beneish M-Score Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PepsiCo's Beneish M-Score falls into.

Save Embed

PepsiCo Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of PepsiCo for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0614

0.528 * 0.9953

0.404 * 0.9914

0.892 * 1.106

0.115 * 1.0557

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0143

4.679 * -0.035034

0.327 * 1.0033

-2.50

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN215,502 Mil.
Revenue was 579454.768 + 459158.106 + 412220.638 + 302881.654 = MXN1,753,715 Mil.
Gross Profit was 304555.787 + 254457.747 + 230503.536 + 165995.743 = MXN955,513 Mil.
Total Current Assets was MXN538,619 Mil.
Total Assets was MXN2,074,454 Mil.
Property, Plant and Equipment(Net PPE) was MXN584,126 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN72,991 Mil.
Selling, General, & Admin. Expense(SGA) was MXN712,907 Mil.
Total Current Liabilities was MXN657,705 Mil.
Long-Term Debt & Capital Lease Obligation was MXN776,333 Mil.
Net Income was 31763.231 + 57692.579 + 56480.878 + 33889.553 = MXN179,826 Mil.
Non Operating Income was -3879.16 + 807.302 + 1025.926 + 962.583 = MXN-1,083 Mil.
Cash Flow from Operations was 131119.786 + 96580.922 + 43162.163 + -17276.701 = MXN253,586 Mil.

Total Receivables was MXN183,576 Mil.
Revenue was 472732.807 + 408525.391 + 382686.136 + 321674.15 = MXN1,585,618 Mil.
Gross Profit was 250421.081 + 222578.666 + 209172.724 + 177690.45 = MXN859,863 Mil.
Total Current Assets was MXN457,456 Mil.
Total Assets was MXN1,705,827 Mil.
Property, Plant and Equipment(Net PPE) was MXN458,967 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN60,969 Mil.
Selling, General, & Admin. Expense(SGA) was MXN635,503 Mil.
Total Current Liabilities was MXN537,184 Mil.
Long-Term Debt & Capital Lease Obligation was MXN638,147 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(215501.948 / 1753715.166)	/	(183576.492 / 1585618.484)
	=	0.122883	/	0.115776
	=	1.0614

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(859862.921 / 1585618.484)	/	(955512.813 / 1753715.166)
	=	0.542289	/	0.544851
	=	0.9953

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (538619.308 + 584126.445) / 2074453.91)	/	(1 - (457455.983 + 458966.691) / 1705827.052)
	=	0.458775	/	0.462769
	=	0.9914

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	1753715.166	/	1585618.484
	=	1.106

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(60968.603 / (60968.603 + 458966.691))	/	(72991.402 / (72991.402 + 584126.445))
	=	0.117262	/	0.111078
	=	1.0557

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(712907.143 / 1753715.166)	/	(635503.339 / 1585618.484)
	=	0.406513	/	0.400792
	=	1.0143

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((776332.576 + 657705.355) / 2074453.91)	/	((638146.853 + 537184.026) / 1705827.052)
	=	0.691285	/	0.689009
	=	1.0033

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(179826.241 - -1083.349	-	253586.17)	/	2074453.91
	=	-0.035034

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

PepsiCo has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.

PepsiCo Beneish M-Score Related Terms

Thank you for viewing the detailed overview of PepsiCo's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

PepsiCo Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » PepsiCo Inc (MEX:PEP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PEP:USA 1PEP:Italy PEPd:UK 0QOS:UK PEP:Germany PEP:Germany PEP:Germany PEP:Germany PEP:Chile PEP:Switzerland PEPB34:Brazil PEPS:Austria PEP:Argentina

Address

700 Anderson Hill Road, Purchase, NY, USA, 10577

Website

https://www.pepsico.com

PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 55% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US and overseas. International markets made up 40% of both total sales and operating profits in 2024.