Stock Market Watch

PepsiCo Inc. Gets Approval for Wimm-Bill-Dann Deal

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PepsiCo Inc. (NYSE:PEP) has received Russian competition watchdog authorities’  approval for its Wimm-Bill-Dann acquisition. The news has been reported by Interfax News Agency. Igor Artemyev, head of the Federal Anti-monopoly Service, said, “We are thinking well (of the deal), there are no big issues.”

* Wimm-Bill-Dann acquisition is one of the biggest acquisitions by a foreign corporation in Russia.
* Russia is fast emerging as a high growth market.

PepsiCo Inc. is looking to acquire 66 percent share in the company. The company will be spending $3.8 billion on the deal. The watchdog has said that PepsiCo Inc’s share in Russian juice market would still be less than 45 percent and hence is not the cause of concern. PepsiCo Inc. will also have 30 percent share of dairy market in Russia.

PepsiCo Inc. has earlier entered into a $1.4 billion deal in the Russian market in 2008. PepsiCo Inc. is a global company and deals in beverage and foods industry. The company is operational in the North America, Europe, Asia, Middle East and Africa. The company has various brands such as Cheetos, Mirinda, Life Cereal, Mountain Dew and Tropicana in its portfolio. The company operates out of New York.


Key Financial Stats

Valuation

* Price/Earnings(TTM)16.60
* Price/Cash Flow12.20
* Price/Sales (TTM)1.97
* Price/Book5.23

Financial Strength

* Quick Ratio (MRQ)0.80
* Current Ratio (MRQ)1.00
* LT Debt to Equity (MRQ)0.93
* Total Debt to Capital (MRQ)1.22
* Return on Equity32.10

Assets

* Asset Turnover1.00
* Asset per Employee61926.11
* Inventory Turnover7.40

Per Share Data

* Earnings (TTM)3.96
* Current P/E Ratio1.00
* Cash Flow5.38
* Annual Dividend1.92
* Book Value12.55
* EBITDA17.00

Profitability

* Market Cap3.96
* Gross Margin (TTM)57.60
* Operating Margin (TTM)17.00
* Profit Margin (TTM) 12.10

Management Effectiveness

* Return on Equity (TTM)32.10%
* Return on Assets (TTM)9.60%
* Return on Investment (TTM)16.60%

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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