Sells soft drinks alongside Frito-Lay snacks and Quaker foods, owning much of its own bottling and distribution.
PepsiCo (PEP) scores 6.6 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and growth is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
PepsiCo’s returns on capital beat their cost in almost every measured year, by a clear margin: 5 of 5 indicators passed.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
Owning manufacturing and distribution lowers margins and raises capital intensity relative to the concentrate model, so efficiency is where the structural difference from its closest peer appears. Predictability is excellent on both sides, which makes the comparison unusually clean. Quality here is largely a question of what the extra assets earn.
The Quality Score for PEP stands at 6.6 out of 10 as of October 17, 2026, which puts PepsiCo in the solid quality band. This band covers companies that do several things well but not everything, so the pillar detail below matters more than the headline. It rolls PepsiCo’s profitability, solvency, growth, efficiency and predictability into one number, each judged against the norms of its sector.
Among the 71 Consumer Staples companies with a published score, that ranks at the 70th percentile, in the better half of its peers. The median across the group is 5.8, and the top quarter begins at 6.8, so PepsiCo is above the typical company here.
On profitability, PepsiCo scores 8.6, a strong reading. Its peers have a median of 4.7 across 71 Consumer Staples companies, which places it well above them, at the 91st percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.
Solvency scores 6.3 out of 10, which reads as average. The median across 65 Consumer Staples companies is 6.9, so PepsiCo is below its peers on this pillar and ranks at the 44th percentile. An average solvency reading suggests debt is present but manageable, the normal state for a company that borrows to fund its operations.
PepsiCo’s growth score is 3.8 out of 10 (weak). Against a median of 4.0 among 67 Consumer Staples companies, that is in line with the group and the 42nd percentile. When growth is this low the question is whether it is a pause or a trend, and the history behind the filings is the place to look.
Efficiency scores 5.6 out of 10, which reads as average. The median across 68 Consumer Staples companies is 6.7, so PepsiCo is below its peers on this pillar and ranks at the 15th percentile. An average efficiency reading suggests the business turns its assets and earnings into cash at roughly the rate its sector does.
PepsiCo’s predictability score is 8.0 out of 10 (strong). Against a median of 6.1 among 71 Consumer Staples companies, that is well above the group and the 93rd percentile. High predictability means the company’s results have moved steadily from year to year, which makes the other pillars more trustworthy as a guide.
The gap between PepsiCo’s best and worst pillar is wide: profitability at 8.6 against growth at 3.8, 4.8 points apart. An average of two readings this different deserves a closer look than the headline number. A profitability lead usually reflects something durable in the business model rather than a good year. Slow growth limits how fast the business can compound, even when everything else is in order.
The pillar with the most room to move the score is efficiency. If it rose to the median of Consumer Staples companies, 6.7, PepsiCo’s overall score would go from 6.6 to about 6.8. The weights add up to 100 points (profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and PepsiCo has a reading on every pillar.
For a fair comparison, start with companies of a similar size: the Consumer Staples companies below are nearest to PepsiCo by market value, each scored on the same pillars.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading PepsiCo scores 6.6 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.
PepsiCo ranks at the 70th percentile of the 71 Consumer Staples companies Lemma publishes a score for. The median there is 5.8 and the top quarter starts at 6.8, against PepsiCo’s 6.6.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for PEP are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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