# Pepsi CDR (CAD Hedged) (PEP.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Consumer Defensive / Beverages. Price C$20.26, market value C$27.6 billion.

## Valuation
- **P/E (trailing): 17.6×** (5-yr avg 3.5×, 3-yr avg 3.5×). Pepsi CDR (CAD Hedged) trades at 17.6× trailing earnings, well above its own five-year average of 3.5×: investors are paying up relative to the company's past. The Consumer Defensive median in the September 2026 study was 20.1×.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 13.2×**. The shares trade at 13.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 3.5×**. Enterprise value is 3.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 37.9%** (5-yr avg 26.4%). Free cash flow equals 37.9% of the market value, above its five-year average of 26.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.7%**. The inverse of the P/E: 5.7% of the price is earned each year.

## Profitability
- **Gross margin: 54.2%**. Pepsi CDR (CAD Hedged) keeps 54.2% of revenue after the direct cost of what it sells.
- **Operating margin: 15.3%**. 15.3% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 8.8%**. 8.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 40.4%**. 40.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 19.8%**. Return on all capital, debt included, is 19.8%: comfortably above what that capital costs.
- **Return on assets: 10.1%**. Each dollar of assets produces 10.1% of profit.

## Growth
- **Revenue growth (1 yr): 2.3%** (3-yr 2.8%/yr). Revenue grew 2.3% over the last year.
- **EPS growth (1 yr): -13.7%** (3-yr -2.2%/yr). Earnings per share fell 13.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.0%/yr**. Free cash flow has compounded at 11.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 2.45**. Debt is 2.45 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.1×**. It would take 2.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 13.6×**. Operating profit covers interest 13.6× over, a safe margin.
- **Current ratio: 0.85** (quick 0.67). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.69**. A Z-score of 1.69 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Pepsi CDR (CAD Hedged) does not currently pay a dividend, but it returned 3.6% of its market value through buybacks over the last year.

## Price and momentum
- **From 52-week high: -21.0%** (10.9% above the low). Trading 21% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 0.07** (volatility 24%). Beta of 0.07 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PEP.TO · Page: https://foliofundamentals.com/stocks/pep.to

Not investment advice.