PEPNEUTRAL

PEP Return on Equity (ROE) Analysis

51.5%

Updated 825h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a 51.5% ROE means PepsiCo earns $0.515 in profit for every $1 of equity.

Sector Performance

93th percentile

PEP

51.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

40.4%(Apr 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a 51.5% ROE means PepsiCo earns $0.515 in profit for every $1 of equity.

This is well above the sector median of 13.9%, placing PepsiCo in the 91st percentile among its peers. Trend data is not available — both year-over-year and quarter-over-quarter changes are listed as N/A, so no direction can be assessed. The combination of a very high ROE level with no trend information suggests strong current profitability, but the lack of historical context limits the ability to judge sustainability or momentum. For an investor, this high ROE indicates efficient use of equity, yet the absence of trend data introduces uncertainty about future performance. This metric supports the overall NEUTRAL verdict because while the absolute ROE is excellent, the missing trend prevents a more bullish or bearish conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PEP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are PEP's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.