COCA-COLA EUROPACIFIC PARTNE (CCEP)
GB00BDCPN049 - Common Stock
Overall CCEP gets a fundamental rating of 5 out of 10. We evaluated CCEP against 34 industry peers in the Beverages industry. There are concerns on the financial health of CCEP while its profitability can be described as average. CCEP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CCEP had positive earnings in the past year.
CCEP had a positive operating cash flow in the past year.
In the past 5 years CCEP has always been profitable.
Each year in the past 5 years CCEP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CCEP (5.69%) is comparable to the rest of the industry.
CCEP has a Return On Equity of 21.84%. This is in the better half of the industry: CCEP outperforms 73.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.86%, CCEP is in line with its industry, outperforming 55.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CCEP is significantly below the industry average of 11.59%.
The last Return On Invested Capital (7.86%) for CCEP is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 21.84% | ||
| ROIC | 7.86% |
ROA(3y)3.7%
ROA(5y)4.39%
ROE(3y)14.16%
ROE(5y)14.81%
ROIC(3y)5.61%
ROIC(5y)6.33%
1.3 Margins
With a decent Profit Margin value of 9.41%, CCEP is doing good in the industry, outperforming 67.65% of the companies in the same industry.
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 52.94% of its industry peers.
CCEP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.29%, CCEP is doing worse than 70.59% 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 | 9.41% | ||
| GM | 36.29% |
OM growth 3Y-1.19%
OM growth 5Y1.59%
PM growth 3Y-1.36%
PM growth 5Y6.96%
GM growth 3Y-1.9%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CCEP is creating some value.
CCEP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CCEP has less shares outstanding
CCEP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that CCEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.90, CCEP perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
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.
CCEP's Debt to FCF ratio of 6.26 is fine compared to the rest of the industry. CCEP outperforms 64.71% of its industry peers.
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 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 1.9 |
ROIC/WACC9.29
WACC6.53%
2.3 Liquidity
A Current Ratio of 0.85 indicates that CCEP may have some problems paying its short term obligations.
CCEP's Current ratio of 0.85 is on the low side compared to the rest of the industry. CCEP is outperformed by 73.53% 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's Quick ratio of 0.66 is in line compared to the rest of the industry. CCEP outperforms 47.06% 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.
The Earnings Per Share has been growing by 18.64% on average over the past years. This is quite good.
The Revenue has grown by 11.73% in the past year. This is quite good.
Measured over the past years, CCEP shows a quite strong growth in Revenue. The Revenue has been growing by 9.38% on average per year.
EPS 1Y20.54%
EPS 3Y12.35%
EPS 5Y18.64%
EPS growth Q2Q27.44%
Revenue growth 1Y11.73%
Revenue growth 3Y12.96%
Revenue growth 5Y9.38%
Revenue growth Q2Q8.42%
3.2 Future
The Earnings Per Share is expected to grow by 8.94% on average over the next years. This is quite good.
CCEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y8.89%
EPS Next 2Y9.01%
EPS Next 3Y8.94%
EPS Next 5YN/A
Revenue Next Year6.9%
Revenue Next 2Y6.49%
Revenue Next 3Y5.69%
Revenue Next 5Y3.91%
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.
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
The Price/Earnings ratio is 16.10, which indicates a correct valuation of CCEP.
Based on the Price/Earnings ratio, CCEP is valued cheaper than 85.29% of the companies in the same industry.
CCEP is valuated rather cheaply when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.54, the valuation of CCEP can be described as correct.
82.35% of the companies in the same industry are more expensive than CCEP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 18.89. CCEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CCEP is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CCEP indicates a rather cheap valuation: CCEP is cheaper than 85.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.55 | ||
| EV/EBITDA | 11.6 |
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)1.81
PEG (5Y)0.86
EPS Next 2Y9.01%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, 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 2.30. CCEP pays more dividend than 91.18% of the companies in the same industry.
CCEP's Dividend Yield is comparable with the S&P500 average which is at 2.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
On average, the dividend of CCEP grows each year by 10.59%, which is quite nice.
CCEP has been paying a dividend for at least 10 years, so it has a reliable track record.
CCEP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.59%
Div Incr Years2
Div Non Decr Years2
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.
CCEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.08%
EPS Next 2Y9.01%
EPS Next 3Y8.94%
COCA-COLA EUROPACIFIC PARTNE
NASDAQ:CCEP (9/28/2023, 7:00:00 PM)
After market: 62.8 0 (0%)62.8
+0.49 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)08-03 2023-08-03
Earnings (Next)N/A N/A
Inst Owners28.97%
Inst Owner Change1.9%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap28.82B
Analysts79.17
Price Target72.2 (14.97%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Dividend Growth(5Y)10.59%
DP48.08%
Div Incr Years2
Div Non Decr Years2
Ex-Date05-11 2023-05-11 (0.74)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
PT rev (1m)2.1%
PT rev (3m)3.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.43%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.54 | ||
| P/S | 1.52 | ||
| P/FCF | 14.55 | ||
| P/OCF | 10.57 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.6 |
EPS(TTM)3.9
EY6.21%
EPS(NY)4.32
Fwd EY6.88%
FCF(TTM)4.32
FCFY6.87%
OCF(TTM)5.94
OCFY9.46%
SpS41.38
BVpS17.82
TBVpS-20.77
PEG (NY)1.81
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 21.84% | ||
| ROCE | 10.81% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.65% | ||
| ROICexgc | 60.65% | ||
| OM | 12.62% | ||
| PM | 9.41% | ||
| GM | 36.29% | ||
| FCFM | 10.43% |
ROA(3y)3.7%
ROA(5y)4.39%
ROE(3y)14.16%
ROE(5y)14.81%
ROIC(3y)5.61%
ROIC(5y)6.33%
ROICexc(3y)6.41%
ROICexc(5y)6.87%
ROICexgc(3y)49.88%
ROICexgc(5y)42.74%
ROCE(3y)7.55%
ROCE(5y)8.55%
ROICexcg growth 3Y37%
ROICexcg growth 5Y28.74%
ROICexc growth 3Y1.99%
ROICexc growth 5Y5.73%
OM growth 3Y-1.19%
OM growth 5Y1.59%
PM growth 3Y-1.36%
PM growth 5Y6.96%
GM growth 3Y-1.9%
GM growth 5Y-1.44%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 87.61% | ||
| Cap/Sales | 3.92% | ||
| Profit Quality | 110.86% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 1.9 |
F-Score6
WACC6.53%
ROIC/WACC9.29
Cap/Depr(3y)62.35%
Cap/Depr(5y)79.69%
Cap/Sales(3y)3.52%
Cap/Sales(5y)4.16%
Profit Quality(3y)180.63%
Profit Quality(5y)158.8%
Growth
EPS 1Y20.54%
EPS 3Y12.35%
EPS 5Y18.64%
EPS growth Q2Q27.44%
EPS Next Y8.89%
EPS Next 2Y9.01%
EPS Next 3Y8.94%
EPS Next 5YN/A
Revenue growth 1Y11.73%
Revenue growth 3Y12.96%
Revenue growth 5Y9.38%
Revenue growth Q2Q8.42%
Revenue Next Year6.9%
Revenue Next 2Y6.49%
Revenue Next 3Y5.69%
Revenue Next 5Y3.91%
EBIT growth 1Y15.03%
EBIT growth 3Y11.61%
EBIT growth 5Y11.12%
EBIT Next Year51.18%
EBIT Next 3Y20.13%
EBIT Next 5Y13.72%
FCF growth 1Y7.13%
FCF growth 3Y21.39%
FCF growth 5Y16.12%
OCF growth 1Y26.45%
OCF growth 3Y15.48%
OCF growth 5Y12.56%