Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, soft-drink and snack giant PepsiCo (NYSE: PEP ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at PepsiCo's business and see what CAPS investors are saying about the stock right now.
PepsiCo facts
Headquarters (Founded) | Purchase, N.Y. (1898) |
Market Cap | $101.5 billion |
Industry | Soft drinks |
Trailing-12-Month Revenue | $64.5 billion |
Management | Chairman/CEO Indra Nooyi CFO Hugh Johnston |
Return on Equity (Average, Past 3 Years) | 32.5% |
Cash/Debt | $3.54 billion / $26.9 billion |
Dividend Yield | 3.2% |
Competitors | Coca-Cola (NYSE: KO ) General Mills (NYSE: GIS ) Kraft (NYSE: KFT ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 4,422 members who have rated PepsiCo believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars TMFDeej and TheMiracleDJR, both of whom are ranked in the top 5% of our community.
Just last month, TMFDeej tapped the stock as a tasty bargain opportunity: "Pepsi is cheap on a sum-of-the-parts basis. This value may be unlocked by a split of ! the drin ks and snacks divisions, potentially forced by activist investors and the company's Board of Directors."
In fact, PepsiCo sports a cheapish price-to-cash flow of 12.3. That represents a discount to competitors like Coca-Cola (17.1), General Mills (15.0), and Kraft (15.3).
CAPS All-Star TheMiracleDJR expands on the outperform argument:
As a marketing man, all I can say is The Pepsi Generation -- as stupid, annoying and idiotic as it is -- is the purest genius. A moat pretty much as big as Coke's. No chance any beverage/snack food company can get in front of them. They're profits are as close to guaranteed as profits can be.
What do you think about PepsiCo, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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