Aureus
COkay

Pepsico, Inc.(PEP)

C

Financial data as of Dec 31, 2025Improving · Consumer Staples

FCF Margin7.9%Free Cash Flow / Revenue
Cash Conversion146.7%Operating CF / Net Income
Free Cash Flow$7.7B
Revenue$93.9B
Net Cash-$40.7BNet debt position
Debt / FCF6.8xElevated debt burden
Current Ratio0.85Tight short-term liquidity
YoY FCF Growth+69.8%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
-0.5Elevated debt-to-FCF ratio (6.8x)
→
-1Current ratio below 1.0 (0.85)
→
+1Strong YoY FCF growth (69.8% YoY)
→
-0.5Highly volatile FCF (consistency: 1.70)
→
FinalC

Analysis Summary

Strengths

  • Excellent cash conversion (147%)
  • Strong YoY FCF growth (+69.8%)

Concerns

  • Low FCF margin (7.9%)
  • Heavy debt position ($40.7B net debt, 6.8x FCF)
  • High debt-to-FCF ratio (6.8x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin7.9%
Net Margin8.8%
Operating CF Margin12.9%
CapEx Ratio4.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$40.7BNet debt position
Debt / FCF6.8xElevated debt burden
Current Ratio0.85Tight liquidity
Debt / Equity2.45High leverage

Quarterly FCF Trend

+69.8% YoYImproving (+69.8%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NamePepsico, Inc.
SectorConsumer Staples
Free Cash Flow$7.7B
Revenue$93.9B
Net Income$8.2B
Operating Cash Flow$12.1B
Capital Expenditure$4.4B
FCF Margin7.9%
Cash Conversion Rate146.7%
Net Margin8.8%
Total Debt$49.9B
Total Cash$9.2B
Net Cash-$40.7B
Current Ratio0.85
Debt / Equity2.45
Debt / FCF6.8x
YoY FCF Growth+69.8%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeC
Data SourceYahoo Finance

Related Research

All research →
Sector Report5 min read

Consumer Staples: Seven A-Grades, Four Disasters

Tobacco and beverages dominate the top. Retailers and Tyson scrape the bottom at 2% margins.

May 11, 2026
MOPMMNSTSTZ+16
Sector Report4 min read

Consumer Staples: Seven A-Grades, Three Disasters

Philip Morris and Monster print 26% and 22% margins. Walmart and Tyson barely break 2%. Same sector, different planets.

Mar 30, 2026
PMMNSTSTZCL+9
Sector Report5 min read

Consumer Staples: Eight A-Grades and a Margin Split

Tobacco and energy drinks print 20%+ margins. Retail giants barely break 2%. Both earn A-grades. Something's broken.

Feb 13, 2026
PMMNSTSTZCL+8