Aureus
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Pepsico, Inc.(PEP)

C

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

FCF Margin8.2%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 / FCF6.5xElevated debt burden
Current Ratio0.85Tight short-term liquidity
YoY FCF Growth+23.1%4 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 (6.5x)
→
-1Current ratio below 1.0 (0.85)
→
+1Strong YoY FCF growth (23.1% YoY)
→
-0.5Highly volatile FCF (consistency: 0.99)
→
FinalC

Analysis Summary

Strengths

  • Excellent cash conversion (147%)
  • Strong YoY FCF growth (+23.1%)
  • FCF trend is improving

Concerns

  • Low FCF margin (8.2%)
  • Heavy debt position ($40.7B)
  • High debt-to-FCF ratio (6.5x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.2%
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 / FCF6.5xElevated debt burden
Current Ratio0.85Tight liquidity
Debt / Equity2.45High leverage

Quarterly FCF Trend

+23.1% YoYImproving (+23.1%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

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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 Margin8.2%
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 / FCF6.5x
YoY FCF Growth+23.1%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeC
Data SourceYahoo Finance

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