Why Investing In Pepsico Inc, can be lucrative for Value Investors.
Dear PGM Blog reader,
In this weekend blog article, we want to take the opportunity to discuss with you, why investing in Pepsico Inc, can be lucrative for value investors.
INTRODUCTION:
PepsiCo, Inc. (NYSE: PEP), is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, and has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.
The company was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio.
Q1-2019 FINANCIAL RESULTS:
On Wednesday, April 17, before the opening bell, Pepsico Inc, released its Q1-2019, earnings report with the following highlights:
- Net revenue inched 3% higher to US$12.9 billion.
- Operating profit jumping 11% to US$2 billion.
- Net attributable income rose 6% to US$1.4 billion or US$1 per diluted share in the quarter.
Highlight of Q1-2019 Financial Results:
As can be seen from above figure, revenues from Frito-Lay North America grew 5.5% to US$3.8 billion, while that from Quaker Foods North America slipped 1% to just US$594 million.
PepsiCo Beverages North America revenue grew 2% to US$4.5 billion. Revenue from Latin America inched 1% up to reach US$1.2 billion, revenue from Europe Sub-Saharan Africa rose 1.5% to US$1.7 billion, while that from Asia, Middle East and North Africa slipped 1% to US$1 billion.
PGM CAPITAL’s ANALYSIS & COMMENTS:
Outlook:
Following strong results, PepsiCo reiterated guidance for 2019. It plans to continue investing in capabilities that will position it for growth in the future.
For 2019, the company anticipates organic revenue growth of 4%, with nearly 1% decline in core constant-currency EPS.
Free cash flow is estimated to be around US$5 billion. Operating cash flow is expected to be nearly $9 billion, with net capital spending of US$4.5 billion.
The company plans to return US$8 billion to shareholders through dividends worth US$5 billion and share repurchases worth US$3 billion.
Pepsico Shares Jumped to All-time High:
Based on its blockbuster results, the shares of the company rose as much as 2.1% on April 17, to close the short trading week on Thursday April 18 at its highest point ever, of US$ 127.09 per share. as can be seen from below chart.
As can be seen from below chart, the company increased its yearly dividend from US$ 1.65 per share in 2008 to US$ 3.5875 per share in 2018, an increase of approx. 118 percent in ten years.
Based on the company’s fundamentals, P/E ratio, strong balance sheet and its ability to increase its dividend YOY, we have a BUY rating on the shares of Pepsico Inc.
Disclosure:
We don’t own shares Pepsico Inc in our personal portfolio.
Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration and keep in mind that; share prices don’t move in a straight line, that Past Performance Is Not Indicative Of Future Results.
Yours sincerely,
Eric Panneflek
Source: https://www.pgmcapital.com/why-investing-in-pepsico-can-be-lucrative-for-value-investors/
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Whistler Blowers, Insiders
Just do a search on one word: Senomyx . You may have to use more than just one search engine.
I will add that this gruesome company seems to have used a play on words: Sen-o-mys= It’s always been a sin to mix God’s things with Satan’s things.
Re: pepsico and it’s products
‘Beware of Flavor Enhancers from Senomyx – Dr. Mercola
articles.mercola.com/sites/articles/archive/2011/09/01/what-you-dont-know-about-flavor-enhancers-can-harm-you.aspx
Sep 1, 2011 … Flavor enhancers from the biotech company Senomyx are tested using kidney cells from aborted fetuses, and are just as damaging as …’
March 8, 2012 | Posted in Abortion, Sanctity of Life | By Jerry
As we reported yesterday, biotech company Senomyx uses fetal cells from aborted babies to test food additives. PepsiCo is one of the major American corporations that has a contract with Senomyx to test their food and drink products. Today we want to tell you a little more about how this testing process works, and who else, besides Pepsi, uses it.
How Does This Testing Process Work?
It’s all a bit complicated, but Mercola.com probably explains Senomyx and how their process works the best:
Senomyx is a high tech research and development business that is “dedicated to finding new flavors to reduce sugars and reduce salt.” But their focus is not on whole, organic fruits and vegetables, or grass-pastured meats, dairy and eggs. Senomyx develops patented flavor enhancers by using “proprietary taste receptor-based assay systems.”
That’s a testing system that provides scientists with biochemical responses and electronic readouts when a flavor ingredient interacts with their patented receptor, letting researchers know whether or not their flavor enhancer is effective. The receptors are made from HEK293 — HEK stands for Human Embryonic Kidney cells, with 293 denoting that the HEK was from the 293rd experiment. HEK293 originally came from a healthy, electively aborted baby whose cells were then harvested and cloned.
In even simpler terms, Senomyx engineered the aborted fetal remains into a compound of “receptors” that react to a flavor enhancer—say, a new sweetener for Pepsi, for example. These receptors can react positively or negatively to food additives and flavor enhancers. If the test is positive, then there’s a good chance that the flavor enhancer will appear in a product on the grocery store shelf.
Who Uses This Process?
Now that you know what Senomyx does, you probably want to know the companies that contract with them. We’ll update this list as we discover more information, but for now, here are the companies we’re aware of: https://familycouncil.org/?p=4666
PepsiCo (click here for a list of all their brands and products)
Frito-Lay (click here for a list of brands and products)
Tropicana (click here for a list of brands and products)
Quaker
Gatorade
Lipton
Kraft (here are two lists of Kraft brands and products: Kraft Foods website, and a separately compiled list. Note that Kraft is a parent company for Nabisco)
Nestle (click here for a list of products and brands)
Pfizer Inc (click here for a list of products)
Merck & Co (click here for a list of products)
Beware of Flavor Enhancers from Senomyx – Dr. Mercola
articles.mercola.com/sites/articles/archive/2011/09/01/what-you-dont-know-about-flavor-enhancers-can-harm-you.aspx
Sep 1, 2011 … Flavor enhancers from the biotech company Senomyx are tested using kidney cells from aborted fetuses, and are just as damaging as …