Fixed assets analysis
PepsiCo’ s total assets were $100.5 billion and $92.2 billion as of December 30, 2023 and December 31, 2022, respectively.
Total current assets were $27 billion as of December 30, 2023, accounting for 26.9% of total assets.
Property, plant and equipment, net were $27 billion as of December 30, 2023, consisting of 26.9% of total assets.
Let’s look at Coca-Cola’s fixed assets.
Coca-Cola’s fixed assets only accounted for 9.4% of total assets as of December 31, 2023.
This big difference shows the difference of operating strategy. PepsiCo is more diversified than Coca-Cola, which focuses more on beverage industry.
Generally, the size of fixed assets is larger, the amount of capital expenditures is larger, which would reduce free cash flow.
PepsiCo’s cash flow and capital expenditures
PepsiCo’s net cash provided by operating activities was $13.4 billion, $10.8 billion and $11.6 billion in 2023, 2022 and 2021, respectively.
Capital spending was $5.5 billion, $5.2 billion and $4.6 billion in 2023, 2022 and 2021, respectively.
PepsiCo’s free cash flow was $7.9 billion, $5.6 billion and $6 billion in 2023, 2022 and 2021, respectively.
Coca-Cola’s cash flow and capital expenditures
Net cash provided by operating activities was $11.6 billion, $11 billion and $12.6 billion in 2023, 2022 and 2021, respectively.
Purchases of property, plant and equipment were $1.85 billion, $1.48 billion and $1.37 billion in 2023, 2022 and 2021, respectively.
The free cash flow was $9.75 billion, $9.52 billion and $11.23 billion in 2023, 2022 and 2021, respectively.
You can see that PepsiCo’s capital expenditures has been far more than Coca-Cola’s capital expenditures, and Coca-Cola’s free cash flow has been more than PepsiCo’s free cash flow.
Coca-Cola has returned more capital to its shareholders than PepsiCo has returned capital to its shareholders.
PepsiCo’s capital returns
PepsiCo’s cash dividends paid were $6.7 billion, $6.2 billion and $5.8 billion in 2023, 2022 and 2021, respectively.
PepsiCo’s share repurchases was $1 billion, $1.5 billion and $106 million in 2023, 2022 and 2021, respectively.
The combined amount of cash dividends and share repurchases was $7.7 billion, $7.7 billion and $6.8 billion over the past three years.
Coca-Cola’s capital returns
Purchases of stock for treasury were $2.3 billion, $1.4 billion and $111 million in 2023, 2022 and 2021, respectively.
Dividends were $8 billion, $7.6 billion and $7.3 billion in 2023, 2022 and 2021, respectively.
The combined amount of stock purchases and dividends were $9.9 billion, $8.7 billion and $7.4 billion in the past three years.
Conclusion
We reckon that PepsiCo’s reasonable valuation is about $140 billion, while PepsiCo’s market capitalization is about $223 billion.
PepsiCo may not down to $140 billion in market capitalization with many factors, which affecting stock price.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
We were incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986. We are a leading global beverage and convenient food company with a complementary portfolio of brands, including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. Through our operations, authorized bottlers, contract manufacturers and other third parties, we make, market, distribute and sell a wide variety of beverages and convenient foods, serving customers and consumers in more than 200 countries and territories.
