COCA-COLA EUROPACIFIC PARTNE (CCEP.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:CCEP - GB00BDCPN049 - Common Stock
75.2 EUR
-0.7 (-0.92%)
CCEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Beverages industry. CCEP has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, CCEP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year CCEP was profitable.
- CCEP had a positive operating cash flow in the past year.
- CCEP had positive earnings in each of the past 5 years.
- Each year in the past 5 years CCEP had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.83%, CCEP is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 19.11%, CCEP is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
- The Return On Invested Capital of CCEP (7.78%) is better than 62.07% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CCEP is in line with the industry average of 7.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 19.11% | ||
| ROIC | 7.78% |
ROA(3y)5.14%
ROA(5y)4.27%
ROE(3y)19.29%
ROE(5y)16.02%
ROIC(3y)7.81%
ROIC(5y)6.59%
1.3 Margins
- With a Profit Margin value of 7.35%, CCEP perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
- CCEP's Profit Margin has declined in the last couple of years.
- CCEP has a Operating Margin of 11.13%. This is in the lower half of the industry: CCEP underperforms 68.97% of its industry peers.
- CCEP's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 35.20%, CCEP is doing worse than 79.31% of the companies in the same industry.
- In the last couple of years the Gross Margin of CCEP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.13% | ||
| PM (TTM) | 7.35% | ||
| GM | 35.2% |
OM growth 3Y1.65%
OM growth 5Y-1.62%
PM growth 3Y-0.93%
PM growth 5Y-5.22%
GM growth 3Y-1.58%
GM growth 5Y-1.5%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CCEP is still creating some value.
- CCEP has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CCEP has more shares outstanding
- The debt/assets ratio for CCEP has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.05 indicates that CCEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.05, CCEP is in line with its industry, outperforming 55.17% of the companies in the same industry.
- The Debt to FCF ratio of CCEP is 6.04, which is on the high side as it means it would take CCEP, 6.04 years of fcf income to pay off all of its debts.
- CCEP has a Debt to FCF ratio of 6.04. This is amongst the best in the industry. CCEP outperforms 86.21% of its industry peers.
- A Debt/Equity ratio of 1.26 is on the high side and indicates that CCEP has dependencies on debt financing.
- CCEP's Debt to Equity ratio of 1.26 is in line compared to the rest of the industry. CCEP outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.05
WACC7.42%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that CCEP may have some problems paying its short term obligations.
- CCEP's Current ratio of 0.83 is on the low side compared to the rest of the industry. CCEP is outperformed by 68.97% of its industry peers.
- CCEP has a Quick Ratio of 0.83. This is a bad value and indicates that CCEP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.65, CCEP is in line with its industry, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- CCEP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.86%.
- CCEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
- CCEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.04%.
- CCEP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.21% yearly.
EPS 1Y (TTM)-4.86%
EPS 3Y12.73%
EPS 5Y5.83%
EPS Q2Q%15.03%
Revenue 1Y (TTM)9.04%
Revenue growth 3Y14.09%
Revenue growth 5Y11.21%
Sales Q2Q%4.54%
3.2 Future
- Based on estimates for the next years, CCEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.41% on average per year.
- CCEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y4.26%
EPS Next 2Y6.56%
EPS Next 3Y7.4%
EPS Next 5Y8.41%
Revenue Next Year1.7%
Revenue Next 2Y2.18%
Revenue Next 3Y2.76%
Revenue Next 5Y3.19%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.58, CCEP is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as CCEP.
- When comparing the Price/Earnings ratio of CCEP to the average of the S&P500 Index (27.25), we can say CCEP is valued inline with the index average.
- A Price/Forward Earnings ratio of 16.53 indicates a correct valuation of CCEP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CCEP is on the same level as its industry peers.
- CCEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CCEP is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
- CCEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.17 | ||
| EV/EBITDA | 14.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.31
PEG (5Y)3.87
EPS Next 2Y6.56%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
- CCEP has a Yearly Dividend Yield of 2.60%.
- CCEP's Dividend Yield is comparable with the industry average which is at 2.70.
- Compared to an average S&P500 Dividend Yield of 1.82, CCEP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
- On average, the dividend of CCEP grows each year by 8.87%, which is quite nice.
Dividend Growth(5Y)8.87%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- CCEP pays out 60.89% of its income as dividend. This is not a sustainable payout ratio.
- CCEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.89%
EPS Next 2Y6.56%
EPS Next 3Y7.4%
COCA-COLA EUROPACIFIC PARTNE / CCEP.AS FAQ
Can you provide the ChartMill fundamental rating for COCA-COLA EUROPACIFIC PARTNE?
ChartMill assigns a fundamental rating of 4 / 10 to CCEP.AS.
What is the valuation status of COCA-COLA EUROPACIFIC PARTNE (CCEP.AS) stock?
ChartMill assigns a valuation rating of 2 / 10 to COCA-COLA EUROPACIFIC PARTNE (CCEP.AS). This can be considered as Overvalued.
How profitable is COCA-COLA EUROPACIFIC PARTNE (CCEP.AS) stock?
COCA-COLA EUROPACIFIC PARTNE (CCEP.AS) has a profitability rating of 4 / 10.
What is the valuation of COCA-COLA EUROPACIFIC PARTNE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COCA-COLA EUROPACIFIC PARTNE (CCEP.AS) is 22.58 and the Price/Book (PB) ratio is 4.25.
Can you provide the expected EPS growth for CCEP stock?
The Earnings per Share (EPS) of COCA-COLA EUROPACIFIC PARTNE (CCEP.AS) is expected to grow by 4.26% in the next year.