COCA-COLA CO/THE (KO)

US1912161007 - Common Stock

60.17  +1.26 (+2.14%)

After market: 60.11 -0.06 (-0.1%)

Fundamental Rating

5

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 has a correct valuation and a medium growth rate. KO also has an excellent dividend rating.



8

1. Profitability

1.1 Basic Checks

KO had positive earnings in the past year.
KO had a positive operating cash flow in the past year.
In the past 5 years KO has always been profitable.
KO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

KO has a Return On Assets of 10.97%. This is in the better half of the industry: KO outperforms 78.13% of its industry peers.
KO has a better Return On Equity (41.30%) than 93.75% of its industry peers.
KO has a Return On Invested Capital of 13.85%. This is in the better half of the industry: KO outperforms 78.13% of its industry peers.
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 12.50%.
The 3 year average ROIC (12.96%) for KO is below the current ROIC(13.85%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.97%
ROE 41.3%
ROIC 13.85%
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

Looking at the Profit Margin, with a value of 23.42%, KO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
KO's Profit Margin has improved in the last couple of years.
KO has a better Operating Margin (28.95%) than 87.50% of its industry peers.
KO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.52%, KO belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
KO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.95%
PM (TTM) 23.42%
GM 59.52%
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%

4

2. Health

2.1 Basic Checks

KO 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, KO has less shares outstanding
The number of shares outstanding for KO has been increased compared to 5 years ago.
KO has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.18 indicates that KO is not in any danger for bankruptcy at the moment.
KO's Altman-Z score of 4.18 is fine compared to the rest of the industry. KO outperforms 75.00% of its industry peers.
The Debt to FCF ratio of KO is 4.32, which is a neutral value as it means it would take KO, 4.32 years of fcf income to pay off all of its debts.
KO has a Debt to FCF ratio of 4.32. This is in the better half of the industry: KO outperforms 68.75% of its industry peers.
A Debt/Equity ratio of 1.55 is on the high side and indicates that KO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.55, KO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.32
Altman-Z 4.18
ROIC/WACC1.65
WACC8.41%

2.3 Liquidity

KO has a Current Ratio of 1.13. 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 1.13 is on the low side compared to the rest of the industry. KO is outperformed by 65.63% of its industry peers.
A Quick Ratio of 0.95 indicates that KO may have some problems paying its short term obligations.
With a Quick ratio value of 0.95, KO perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.95

4

3. Growth

3.1 Past

KO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.47%, which is quite good.
The Earnings Per Share has been growing slightly by 5.18% on average over the past years.
The Revenue has been growing slightly by 6.39% in the past year.
The Revenue has been growing slightly by 5.93% on average over the past years.
EPS 1Y (TTM)8.47%
EPS 3Y11.32%
EPS 5Y5.18%
EPS growth Q2Q8.89%
Revenue 1Y (TTM)6.39%
Revenue growth 3Y11.49%
Revenue growth 5Y5.93%
Revenue growth Q2Q7.15%

3.2 Future

The Earnings Per Share is expected to grow by 7.47% on average over the next years.
KO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y7.71%
EPS Next 2Y7.2%
EPS Next 3Y7.22%
EPS Next 5Y7.47%
Revenue Next Year0.7%
Revenue Next 2Y2.78%
Revenue Next 3Y3.66%
Revenue Next 5Y4.4%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 22.37 indicates a rather expensive valuation of KO.
68.75% of the companies in the same industry are more expensive than KO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.76, KO is valued at the same level.
The Price/Forward Earnings ratio is 20.77, which indicates a rather expensive current valuation of KO.
KO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KO is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, KO is valued at the same level.
Industry RankSector Rank
PE 22.37
Fwd PE 20.77

4.2 Price Multiples

KO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, KO is valued a bit cheaper than 68.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.61
EV/EBITDA 19.41

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)2.9
PEG (5Y)4.32
EPS Next 2Y7.2%
EPS Next 3Y7.22%

7

5. Dividend

5.1 Amount

KO has a Yearly Dividend Yield of 3.29%.
KO's Dividend Yield is rather good when compared to the industry average which is at 2.50. KO pays more dividend than 90.63% of the companies in the same industry.
KO's Dividend Yield is a higher than the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 3.29%

5.2 History

The dividend of KO has a limited annual growth rate of 3.40%.
KO has paid a dividend for at least 10 years, which is a reliable track record.
KO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.4%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

74.22% 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.
DP74.22%
EPS Next 2Y7.2%
EPS Next 3Y7.22%

COCA-COLA CO/THE

NYSE:KO (4/19/2024, 7:04:00 PM)

After market: 60.11 -0.06 (-0.1%)

60.17

+1.26 (+2.14%)

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 Cap259.40B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.29%
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 RankSector Rank
PE 22.37
Fwd PE 20.77
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)2.9
PEG (5Y)4.32
Profitability
Industry RankSector Rank
ROA 10.97%
ROE 41.3%
ROCE
ROIC
ROICexc
ROICexgc
OM 28.95%
PM (TTM) 23.42%
GM 59.52%
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 Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.13
Quick Ratio 0.95
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)8.47%
EPS 3Y11.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.39%
Revenue growth 3Y11.49%
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