PepsiCo Hits Decade-Low Valuation Amid Beverage Business Struggles

PepsiCo is one of the most recognized brands in the beverage and snack industries, boasting over 30 billion-dollar brands. Despite its deep vertical integration, PepsiCo's core North American beverage business has underperformed, losing market share to Coca-Cola and Keurig Dr Pepper.

In response to a challenging operating environment, PepsiCo is now trading at an unprecedented TTM free cash flow yield of nearly 5%, the highest in at least a decade. This high yield comes as the company's current dividend yield has reached 4.3%, its highest level since the early 1990s.

PepsiCo has been consistently raising its dividend for 54 consecutive years, solidifying its status as a 'dividend king.' Given this context, an analyst who purchased shares of PepsiCo at $134.56 on July 21st remains optimistic about the stock's prospects and is prepared to accumulate more shares if it continues to decline.