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COCA-COLA CO/THE (KO) Stock Fundamental Analysis

NYSE:KO - New York Stock Exchange, Inc. - US1912161007 - Common Stock - Currency: USD

70.195  -0.33 (-0.46%)

Fundamental Rating

4

Overall KO gets a fundamental rating of 4 out of 10. We evaluated KO against 33 industry peers in the Beverages industry. KO has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, KO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

KO had positive earnings in the past year.
In the past year KO had a positive cash flow from operations.
In the past 5 years KO has always been profitable.
KO had a positive operating cash flow in each of the past 5 years.
KO Yearly Net Income VS EBIT VS OCF VS FCFKO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

KO's Return On Assets of 10.60% is amongst the best of the industry. KO outperforms 84.85% of its industry peers.
KO's Return On Equity of 41.16% is amongst the best of the industry. KO outperforms 93.94% of its industry peers.
KO's Return On Invested Capital of 11.60% is fine compared to the rest of the industry. KO outperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KO is in line with the industry average of 11.37%.
Industry RankSector Rank
ROA 10.6%
ROE 41.16%
ROIC 11.6%
ROA(3y)10.61%
ROA(5y)10.21%
ROE(3y)41.22%
ROE(5y)41.26%
ROIC(3y)12.93%
ROIC(5y)12.26%
KO Yearly ROA, ROE, ROICKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

The Profit Margin of KO (23.00%) is better than 93.94% of its industry peers.
KO's Profit Margin has been stable in the last couple of years.
The Operating Margin of KO (25.13%) is better than 81.82% of its industry peers.
KO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 61.07%, KO belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Gross Margin of KO has remained more or less at the same level.
Industry RankSector Rank
OM 25.13%
PM (TTM) 23%
GM 61.07%
OM growth 3Y-6.65%
OM growth 5Y-3.56%
PM growth 3Y-3.68%
PM growth 5Y-1.15%
GM growth 3Y0.44%
GM growth 5Y0.1%
KO Yearly Profit, Operating, Gross MarginsKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KO is still creating some value.
KO has about the same amout of shares outstanding than it did 1 year ago.
KO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KO is higher compared to a year ago.
KO Yearly Shares OutstandingKO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
KO Yearly Total Debt VS Total AssetsKO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

An Altman-Z score of 4.35 indicates that KO is not in any danger for bankruptcy at the moment.
The Altman-Z score of KO (4.35) is better than 78.79% of its industry peers.
KO has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KO (1.87) is worse than 81.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.87
Debt/FCF N/A
Altman-Z 4.35
ROIC/WACC1.18
WACC9.83%
KO Yearly LT Debt VS Equity VS FCFKO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

KO has a Current Ratio of 1.10. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, KO is doing worse than 60.61% of the companies in the same industry.
KO has a Quick Ratio of 1.10. This is a bad value and indicates that KO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.89, KO is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 0.89
KO Yearly Current Assets VS Current LiabilitesKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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4

3. Growth

3.1 Past

KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.86%.
The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
KO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.77%.
The Revenue has been growing slightly by 4.78% on average over the past years.
EPS 1Y (TTM)5.86%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%1.39%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%-0.13%

3.2 Future

KO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.63% yearly.
The Revenue is expected to grow by 4.91% on average over the next years.
EPS Next Y6.1%
EPS Next 2Y6.95%
EPS Next 3Y7.12%
EPS Next 5Y6.63%
Revenue Next Year4.16%
Revenue Next 2Y4.74%
Revenue Next 3Y5.06%
Revenue Next 5Y4.91%

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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
KO Yearly Revenue VS EstimatesKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
KO Yearly EPS VS EstimatesKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3 4

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.29 indicates a rather expensive valuation of KO.
KO's Price/Earnings ratio is in line with the industry average.
KO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.57.
A Price/Forward Earnings ratio of 21.31 indicates a rather expensive valuation of KO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KO is on the same level as its industry peers.
KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.29
Fwd PE 21.31
KO Price Earnings VS Forward Price EarningsKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KO is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 25.51
KO Per share dataKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of KO may justify a higher PE ratio.
PEG (NY)3.98
PEG (5Y)3.78
EPS Next 2Y6.95%
EPS Next 3Y7.12%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.82%, KO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, KO pays a bit more dividend than its industry peers.
KO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 2.82%

5.2 History

The dividend of KO has a limited annual growth rate of 3.93%.
KO has been paying a dividend for at least 10 years, so it has a reliable track record.
KO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years34
Div Non Decr Years34
KO Yearly Dividends per shareKO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

KO pays out 77.42% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.42%
EPS Next 2Y6.95%
EPS Next 3Y7.12%
KO Yearly Income VS Free CF VS DividendKO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
KO Dividend Payout.KO Dividend Payout, showing the Payout Ratio.KO Dividend Payout.PayoutRetained Earnings

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COCA-COLA CO/THE

NYSE:KO (6/17/2025, 9:47:09 AM)

70.195

-0.33 (-0.46%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)07-21 2025-07-21/bmo
Inst Owners65.16%
Inst Owner Change1.31%
Ins Owners0.57%
Ins Owner Change0.96%
Market Cap302.12B
Analysts81.67
Price Target79.47 (13.21%)
Short Float %0.82%
Short Ratio1.97
Dividend
Industry RankSector Rank
Dividend Yield 2.82%
Yearly Dividend1.94
Dividend Growth(5Y)3.93%
DP77.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date06-13 2025-06-13 (0.51)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-0.7%
Max EPS beat(2)3.5%
EPS beat(4)3
Avg EPS beat(4)1.11%
Min EPS beat(4)-0.7%
Max EPS beat(4)3.5%
EPS beat(8)6
Avg EPS beat(8)1.33%
EPS beat(12)9
Avg EPS beat(12)1.44%
EPS beat(16)13
Avg EPS beat(16)3.57%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)3.7%
Revenue beat(4)3
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)3.7%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)0.51%
PT rev (3m)4.55%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 24.29
Fwd PE 21.31
P/S 6.44
P/FCF N/A
P/OCF 281.04
P/B 11.53
P/tB N/A
EV/EBITDA 25.51
EPS(TTM)2.89
EY4.12%
EPS(NY)3.29
Fwd EY4.69%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)0.25
OCFY0.36%
SpS10.89
BVpS6.09
TBVpS-1.29
PEG (NY)3.98
PEG (5Y)3.78
Profitability
Industry RankSector Rank
ROA 10.6%
ROE 41.16%
ROCE 15.12%
ROIC 11.6%
ROICexc 13.89%
ROICexgc 25.57%
OM 25.13%
PM (TTM) 23%
GM 61.07%
FCFM N/A
ROA(3y)10.61%
ROA(5y)10.21%
ROE(3y)41.22%
ROE(5y)41.26%
ROIC(3y)12.93%
ROIC(5y)12.26%
ROICexc(3y)15.62%
ROICexc(5y)14.7%
ROICexgc(3y)32.19%
ROICexgc(5y)29.87%
ROCE(3y)16.38%
ROCE(5y)15.53%
ROICexcg growth 3Y-0.66%
ROICexcg growth 5Y2.12%
ROICexc growth 3Y1.18%
ROICexc growth 5Y0.05%
OM growth 3Y-6.65%
OM growth 5Y-3.56%
PM growth 3Y-3.68%
PM growth 5Y-1.15%
GM growth 3Y0.44%
GM growth 5Y0.1%
F-Score5
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 1.87
Debt/FCF N/A
Debt/EBITDA 3.81
Cap/Depr 185.46%
Cap/Sales 4.27%
Interest Coverage 250
Cash Conversion 8.36%
Profit Quality N/A
Current Ratio 1.1
Quick Ratio 0.89
Altman-Z 4.35
F-Score5
WACC9.83%
ROIC/WACC1.18
Cap/Depr(3y)157.99%
Cap/Depr(5y)128.95%
Cap/Sales(3y)3.96%
Cap/Sales(5y)3.8%
Profit Quality(3y)78.5%
Profit Quality(5y)92.52%
High Growth Momentum
Growth
EPS 1Y (TTM)5.86%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%1.39%
EPS Next Y6.1%
EPS Next 2Y6.95%
EPS Next 3Y7.12%
EPS Next 5Y6.63%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%-0.13%
Revenue Next Year4.16%
Revenue Next 2Y4.74%
Revenue Next 3Y5.06%
Revenue Next 5Y4.91%
EBIT growth 1Y-12.62%
EBIT growth 3Y-0.32%
EBIT growth 5Y1.05%
EBIT Next Year15.75%
EBIT Next 3Y9.88%
EBIT Next 5Y7.57%
FCF growth 1Y-110.3%
FCF growth 3Y-25.04%
FCF growth 5Y-10.85%
OCF growth 1Y-89.82%
OCF growth 3Y-18.62%
OCF growth 5Y-8.26%