What does EBITDA margin mean?

Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.

How do you interpret EBITDA margin?

Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.

How does EBITDA margin compare across companies?

Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.

PepsiCo PEP EBITDA margin

Discontinued — last reported Q3 '17

EBITDA margin at other companies

Coca-ColaKO

31.5%+4.6pp

General MillsGIS

22%+1.0pp

HersheyHSY

18.6%-6.3pp

Coca-Cola Consolidated, Inc.COKE

16%+0.4pp

Monster BeverageMNST

30.7%+3.3pp

Mondelez InternationalMDLZ

12.9%-2.5pp

Other financials

Income statement

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Revenue$19.4B+8.5%

Gross profit$10.7B+7.4%

Operating income$3.2B+24.4%

Net income$2.3B+26.9%

EPS (diluted)$1.70+27.8%

Balance sheet

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Cash & equivalents$10.6B+26.8%

Total debt$52.7B+8.7%

Total equity$21.4B+16.3%

Total assets$110.65B+8.8%

Cash flow

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Operating cash flow$41.0M+104%

CapEx$447.0M-25.9%

Free cash flow-$406.0M+74.2%

Valuation

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Market cap$194.11B+3.2%

Enterprise value$236.29B+3.5%

P/E22.2×+2.2×

P/S2×0.0×

Profitability

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Gross margin54.1%-0.7pp

Operating margin12.7%-1.2pp

Net margin9.1%-1.1pp

FCF margin9.3%+1.3pp

Returns & leverage

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Return on equity43.9%-6.1pp

Debt / equity2.5×-0.2×

Current ratio0.9×+0.1×

Where this comes from

Calculated from PepsiCo’s reported figures.

ebitda/total revenue=20.8%

Based on trailing twelve months.

The official record: PepsiCo’s 10-Q, filed October 2, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does EBITDA margin mean?: Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.
How do you interpret EBITDA margin?: Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.
How does EBITDA margin compare across companies?: Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.