Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

$24.99

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

PepsiCo Inc., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of PepsiCo Inc. Annual Report.


The analysis of the financial metrics over the periods indicates distinct trends concerning share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.

Share Price
The share price exhibited fluctuations across the years, beginning at $59.51 in early 2006 and showing a general upward trend with some volatility. Notable declines occurred in 2009 and again in 2025, with the highest value reaching $172.78 in early 2023. The trajectory suggests periods of growth interrupted by phases of correction or market adjustments, particularly noticeable around economic downturns.
Operating Profit Per Share
This metric showed a steady increase over the examined period. Starting at $3.57 in 2006, the operating profit per share gradually rose with minor fluctuations, reaching $9.40 by early 2025. This upward movement reflects consistent operational efficiency improvements or increased profitability on a per-share basis.
P/OP Ratio
The price-to-operating profit ratio displayed variability over time. It decreased significantly from 16.65 in 2006 to a low of 10.32 in 2012, indicating that the share price was becoming less expensive relative to operating profit during this period. However, in subsequent years, the ratio increased again, peaking at 20.87 in 2022, illustrating that the market valuation grew faster than operating profit. The ratio then declined to 15.27 by 2025, suggesting a partial market correction or a relative increase in operating profit compared to share price.

Overall, the data demonstrates that the company experienced steady profitability growth as reflected by the consistent rise in operating profit per share. The share price responded with an overall upward trend, albeit subject to market cycles. The P/OP ratio's fluctuations suggest variable market sentiment regarding the company’s valuation relative to its operating earnings, with periods indicating undervaluation followed by phases of heightened valuation levels.


Comparison to Competitors

PepsiCo Inc., P/OP, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).