COCA-COLA CO/THE (KO)
US1912161007 - Common Stock
KO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. KO scores excellent on profitability, but there are some minor concerns on its financial health. KO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years KO always reported a positive cash flow from operatings.
1.2 Ratios
KO has a Return On Assets of 10.52%. This is in the better half of the industry: KO outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 41.19%, KO belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.96%, KO is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
KO had an Average Return On Invested Capital over the past 3 years of 12.96%. This is in line with the industry average of 12.59%.
The 3 year average ROIC (12.96%) for KO is below the current ROIC(14.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 41.19% | ||
| ROIC | 14.96% |
ROA(3y)10.54%
ROA(5y)10.16%
ROE(3y)41.12%
ROE(5y)42.1%
ROIC(3y)12.96%
ROIC(5y)12.39%
1.3 Margins
With an excellent Profit Margin value of 22.92%, KO belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Profit Margin of KO has grown nicely.
KO's Operating Margin of 29.64% is amongst the best of the industry. KO outperforms 96.88% of its industry peers.
KO's Operating Margin has been stable in the last couple of years.
KO has a better Gross Margin (60.53%) than 96.88% of its industry peers.
In the last couple of years the Gross Margin of KO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.64% | ||
| PM (TTM) | 22.92% | ||
| GM | 60.53% |
OM growth 3Y-0.91%
OM growth 5Y-0.63%
PM growth 3Y-0.07%
PM growth 5Y4.54%
GM growth 3Y0.12%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KO is creating value.
KO has less 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.
2.2 Solvency
KO has an Altman-Z score of 4.23. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
KO has a Altman-Z score of 4.23. This is in the better half of the industry: KO outperforms 75.00% of its industry peers.
The Debt to FCF ratio of KO is 4.84, which is a neutral value as it means it would take KO, 4.84 years of fcf income to pay off all of its debts.
KO's Debt to FCF ratio of 4.84 is fine compared to the rest of the industry. KO outperforms 71.88% of its industry peers.
KO has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
KO has a Debt to Equity ratio of 1.62. This is in the lower half of the industry: KO underperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.83
WACC8.16%
2.3 Liquidity
KO has a Current Ratio of 1.08. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
KO's Current ratio of 1.08 is on the low side compared to the rest of the industry. KO is outperformed by 62.50% of its industry peers.
KO has a Quick Ratio of 1.08. This is a bad value and indicates that KO is not financially healthy enough and could expect problems in meeting its short term obligations.
KO has a Quick ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.31%.
Measured over the past 5 years, KO shows a small growth in Earnings Per Share. The EPS has been growing by 5.18% on average per year.
KO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)7.31%
EPS 3Y11.32%
EPS 5Y5.18%
EPS Q2Q%7.69%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y11.49%
Revenue growth 5Y5.93%
Sales Q2Q%3.32%
3.2 Future
Based on estimates for the next years, KO will show a small growth in Earnings Per Share. The EPS will grow by 6.84% on average per year.
The Revenue is expected to grow by 3.44% on average over the next years.
EPS Next Y8.07%
EPS Next 2Y7.43%
EPS Next 3Y7.14%
EPS Next 5Y6.84%
Revenue Next Year0.45%
Revenue Next 2Y2.63%
Revenue Next 3Y3.53%
Revenue Next 5Y3.44%
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 accelerating.
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
A Price/Earnings ratio of 23.68 indicates a rather expensive valuation of KO.
Compared to the rest of the industry, the Price/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/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.28, the valuation of KO can be described as rather expensive.
KO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KO to the average of the S&P500 Index (20.35), we can say KO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 21.28 |
4.2 Price Multiples
KO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KO is more expensive than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KO is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.44 | ||
| EV/EBITDA | 20.13 |
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 excellent profitability rating of KO may justify a higher PE ratio.
PEG (NY)2.93
PEG (5Y)4.57
EPS Next 2Y7.43%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.99%.
Compared to an average industry Dividend Yield of 2.83, KO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, KO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of KO has a limited annual growth rate of 3.40%.
KO has been paying a dividend for at least 10 years, so it has a reliable track record.
KO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.4%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
75.57% of the earnings are spent on dividend by KO. This is not a sustainable payout ratio.
KO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.57%
EPS Next 2Y7.43%
EPS Next 3Y7.14%
COCA-COLA CO/THE
NYSE:KO (7/25/2024, 7:04:00 PM)
After market: 66.07 0 (0%)66.07
+0.26 (+0.4%)
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 Cap284.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
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 | 23.68 | ||
| Fwd PE | 21.28 | ||
| 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)2.93
PEG (5Y)4.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 41.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.64% | ||
| PM (TTM) | 22.92% | ||
| GM | 60.53% | ||
| 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.92 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)7.31%
EPS 3Y11.32%
EPS 5Y
EPS Q2Q%
EPS Next Y8.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.27%
Revenue growth 3Y11.49%
Revenue growth 5Y
Sales 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