COCA-COLA EUROPACIFIC PARTNE (CCEP)
GB00BDCPN049 - Common Stock
Taking everything into account, CCEP scores 5 out of 10 in our fundamental rating. CCEP was compared to 32 industry peers in the Beverages industry. While CCEP is still in line with the averages on profitability rating, there are concerns on its financial health. CCEP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CCEP was profitable.
In the past year CCEP had a positive cash flow from operations.
CCEP had positive earnings in each of the past 5 years.
In the past 5 years CCEP always reported a positive cash flow from operatings.
1.2 Ratios
CCEP has a Return On Assets (5.69%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 21.84%, CCEP is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
CCEP's Return On Invested Capital of 8.09% is in line compared to the rest of the industry. CCEP outperforms 53.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CCEP is significantly below the industry average of 12.35%.
The last Return On Invested Capital (8.09%) for CCEP is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 21.84% | ||
| ROIC | 8.09% |
ROA(3y)4.74%
ROA(5y)4.53%
ROE(3y)18.38%
ROE(5y)16.22%
ROIC(3y)6.98%
ROIC(5y)6.72%
1.3 Margins
CCEP has a Profit Margin (9.41%) which is in line with its industry peers.
CCEP's Profit Margin has improved in the last couple of years.
CCEP has a Operating Margin of 12.62%. This is comparable to the rest of the industry: CCEP outperforms 43.75% of its industry peers.
In the last couple of years the Operating Margin of CCEP has grown nicely.
Looking at the Gross Margin, with a value of 36.29%, CCEP is doing worse than 84.38% of the companies in the same industry.
CCEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.62% | ||
| PM (TTM) | 9.41% | ||
| GM | 36.29% |
OM growth 3Y15.03%
OM growth 5Y1.76%
PM growth 3Y24.77%
PM growth 5Y2.93%
GM growth 3Y1.02%
GM growth 5Y-1%
2. Health
2.1 Basic Checks
CCEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CCEP has more shares outstanding
Compared to 5 years ago, CCEP has less shares outstanding
The debt/assets ratio for CCEP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that CCEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
CCEP has a Altman-Z score (1.99) which is in line with its industry peers.
CCEP has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as CCEP would need 6.26 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.26, CCEP is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that CCEP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.27, CCEP is doing worse than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.22
WACC6.62%
2.3 Liquidity
CCEP has a Current Ratio of 0.85. This is a bad value and indicates that CCEP is not financially healthy enough and could expect problems in meeting its short term obligations.
CCEP has a worse Current ratio (0.85) than 78.13% of its industry peers.
CCEP has a Quick Ratio of 0.85. This is a bad value and indicates that CCEP is not financially healthy enough and could expect problems in meeting its short term obligations.
CCEP has a Quick ratio of 0.66. This is in the lower half of the industry: CCEP underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.54% over the past year.
Measured over the past years, CCEP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.35% on average per year.
CCEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.73%.
Measured over the past years, CCEP shows a quite strong growth in Revenue. The Revenue has been growing by 9.70% on average per year.
EPS 1Y (TTM)20.54%
EPS 3Y49.42%
EPS 5Y14.35%
EPS growth Q2Q27.44%
Revenue 1Y (TTM)11.73%
Revenue growth 3Y19.95%
Revenue growth 5Y9.7%
Revenue growth Q2Q8.42%
3.2 Future
The Earnings Per Share is expected to grow by 8.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y6.83%
EPS Next 2Y7.55%
EPS Next 3Y8.14%
EPS Next 5YN/A
Revenue Next Year13.04%
Revenue Next 2Y8.75%
Revenue Next 3Y7.16%
Revenue Next 5Y2.93%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.01, CCEP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CCEP indicates a rather cheap valuation: CCEP is cheaper than 84.38% of the companies listed in the same industry.
CCEP is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.65, the valuation of CCEP can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CCEP indicates a somewhat cheap valuation: CCEP is cheaper than 75.00% of the companies listed in the same industry.
CCEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than CCEP, based on the Enterprise Value to EBITDA ratio.
CCEP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CCEP is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 12.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CCEP may justify a higher PE ratio.
PEG (NY)2.64
PEG (5Y)1.26
EPS Next 2Y7.55%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, CCEP has a reasonable but not impressive dividend return.
CCEP's Dividend Yield is rather good when compared to the industry average which is at 2.48. CCEP pays more dividend than 87.50% of the companies in the same industry.
CCEP's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
On average, the dividend of CCEP grows each year by 11.43%, which is quite nice.
CCEP has been paying a dividend for at least 10 years, so it has a reliable track record.
CCEP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.43%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
48.08% of the earnings are spent on dividend by CCEP. This is a bit on the high side, but may be sustainable.
The dividend of CCEP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.08%
EPS Next 2Y7.55%
EPS Next 3Y8.14%
COCA-COLA EUROPACIFIC PARTNE
NASDAQ:CCEP (4/26/2024, 3:44:02 PM)
After market: 71.5 0 (0%)71.5
+0.56 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap32.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 16.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.64
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 21.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.62% | ||
| PM (TTM) | 9.41% | ||
| GM | 36.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.54%
EPS 3Y49.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.73%
Revenue growth 3Y19.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y