Pepsi Investment Recommendation
INVESTMENT RECOMMENDATION
PEPSICO INC
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Investment Recommendation BUY
PEPCICO INC
Dec. 10, 2011 INVESTMENT THESIS: * PepsiCo is increasing its investment in China, PepsiCo Americas Beverages and in Nutrition growth initiatives. This initiative will help the company to grow the annual earnings more than 10% on a longer term.
* PepsiCo is the world’s largest snack food company, controlling 40% of the US snacks market and around 30% of the non-US market.
* The company has an attractive dividend yield of around 3% and the company has been a long-term value creator for investors by share buybacks.
* PepsiCo announced that in 2011 it will distribute its sports drink Gatorade on its Direct Store Delivery(DSD) this decision demonstrates the company’s focus on long-term growth of its Brands.
Key Stock Statistics 52-Week Price Range | $58.75-67.00 | Market Capitalization | $105.68 | Shares Outstanding | 1.58 | Institutional Ownership | 67.60% | Dividend Yield | 2.9% | Price/Earnings (ttm) | 16.81 | Price/Book | 5.26 | Price/Sales | 1.85 | ROA (ttm) | 10.70% | ROE (ttm) | 36.27% | Projected 5-Year Growth | 10.25% |
EPS ($) Year | 2007 | 2008 | 2009 | 2010 | EPS | 3.48 | 3.26 | 3.80 | 4.61 |
All earnings represent earnings from operations and have been filtered from net nonrecurring gains.
Catalogue
Executive Summary ……………………………….4
Company Overview ……………………………….4
SWOT Analysis ……………………………….6
Financial Analysis …………………………………7
Economic Outlook ……………………………….13
Catalysts for Growth ………………………………..14
Investment Positives and Negatives……………….14
Conclusion ………………………………..15
References P13
List of Figures P14
Executive Summary
Our buy recommendation for PepsiCo is based on a long-term success story. We believe that to reap the long-term benefits,
PEPSICO INC
-------------------------------------------------
Investment Recommendation BUY
PEPCICO INC
Dec. 10, 2011 INVESTMENT THESIS: * PepsiCo is increasing its investment in China, PepsiCo Americas Beverages and in Nutrition growth initiatives. This initiative will help the company to grow the annual earnings more than 10% on a longer term.
* PepsiCo is the world’s largest snack food company, controlling 40% of the US snacks market and around 30% of the non-US market.
* The company has an attractive dividend yield of around 3% and the company has been a long-term value creator for investors by share buybacks.
* PepsiCo announced that in 2011 it will distribute its sports drink Gatorade on its Direct Store Delivery(DSD) this decision demonstrates the company’s focus on long-term growth of its Brands.
Key Stock Statistics 52-Week Price Range | $58.75-67.00 | Market Capitalization | $105.68 | Shares Outstanding | 1.58 | Institutional Ownership | 67.60% | Dividend Yield | 2.9% | Price/Earnings (ttm) | 16.81 | Price/Book | 5.26 | Price/Sales | 1.85 | ROA (ttm) | 10.70% | ROE (ttm) | 36.27% | Projected 5-Year Growth | 10.25% |
EPS ($) Year | 2007 | 2008 | 2009 | 2010 | EPS | 3.48 | 3.26 | 3.80 | 4.61 |
All earnings represent earnings from operations and have been filtered from net nonrecurring gains.
Catalogue
Executive Summary ……………………………….4
Company Overview ……………………………….4
SWOT Analysis ……………………………….6
Financial Analysis …………………………………7
Economic Outlook ……………………………….13
Catalysts for Growth ………………………………..14
Investment Positives and Negatives……………….14
Conclusion ………………………………..15
References P13
List of Figures P14
Executive Summary
Our buy recommendation for PepsiCo is based on a long-term success story. We believe that to reap the long-term benefits,