KO Fundamental Analysis - COCA-COLA CO/THE

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to KO. KO was compared to 32 industry peers in the Beverages industry. KO scores excellent on profitability, but there are concerns on its financial health. KO is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year KO was profitable.

KO had a positive operating cash flow in the past year.

KO had positive earnings in each of the past 5 years.

In the past 5 years KO always reported a positive cash flow from operatings.

1.2 Ratios

KO's Return On Assets of 11.68% is amongst the best of the industry. KO outperforms 90.63% of its industry peers.

The Return On Equity of KO (42.62%) is better than 100.00% of its industry peers.

With a decent Return On Invested Capital value of 12.72%, KO is doing good in the industry, outperforming 71.88% of the companies in the same industry.

Measured over the past 3 years, the Average Return On Invested Capital for KO is in line with the industry average of 11.07%.

The last Return On Invested Capital (12.72%) for KO is above the 3 year average (11.98%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	11.68%
ROE	42.62%
ROIC	12.72%

ROA(3y)10.61%

ROA(5y)10.21%

ROE(3y)41.22%

ROE(5y)41.26%

ROIC(3y)11.98%

ROIC(5y)11.6%

1.3 Margins

KO's Profit Margin of 25.89% is amongst the best of the industry. KO outperforms 100.00% of its industry peers.

KO's Profit Margin has been stable in the last couple of years.

With an excellent Operating Margin value of 28.59%, 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 Operating Margin of KO has declined.

KO has a better Gross Margin (61.43%) than 93.75% 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	28.59%
PM (TTM)	25.89%
GM	61.43%

OM growth 3Y-5.6%

OM growth 5Y-3.48%

PM growth 3Y-3.68%

PM growth 5Y-1.15%

GM growth 3Y0.44%

GM growth 5Y0.1%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 about the same amount of shares outstanding.

Compared to 5 years ago, KO has more shares outstanding

The debt/assets ratio for KO is higher compared to a year ago.

2.2 Solvency

KO has an Altman-Z score of 4.33. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.

KO has a better Altman-Z score (4.33) than 71.88% of its industry peers.

A Debt/Equity ratio of 1.73 is on the high side and indicates that KO has dependencies on debt financing.

With a Debt to Equity ratio value of 1.73, KO is not doing good in the industry: 84.38% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.73
Debt/FCF	N/A
Altman-Z	4.33

ROIC/WACC1.56

WACC8.17%

2.3 Liquidity

A Current Ratio of 1.21 indicates that KO should not have too much problems paying its short term obligations.

With a Current ratio value of 1.21, KO perfoms like the industry average, outperforming 46.88% of the companies in the same industry.

A Quick Ratio of 0.98 indicates that KO may have some problems paying its short term obligations.

KO has a Quick ratio of 0.98. This is in the better half of the industry: KO outperforms 65.63% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.21
Quick Ratio	0.98

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.66%.

KO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.

Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 1.28% in the last year.

KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.

EPS 1Y (TTM)4.66%

EPS 3Y7.32%

EPS 5Y6.42%

EPS Q2Q%3.57%

Revenue 1Y (TTM)1.28%

Revenue growth 3Y6.78%

Revenue growth 5Y4.78%

Sales Q2Q%2.47%

3.2 Future

The Earnings Per Share is expected to grow by 6.80% on average over the next years.

Based on estimates for the next years, KO will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.

EPS Next Y6.56%

EPS Next 2Y7.29%

EPS Next 3Y7.27%

EPS Next 5Y6.8%

Revenue Next Year4.93%

Revenue Next 2Y5.34%

Revenue Next 3Y5.3%

Revenue Next 5Y5.07%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.57, the valuation of KO can be described as rather expensive.

Compared to the rest of the industry, the Price/Earnings ratio of KO is on the same level as its industry peers.

KO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.14.

With a Price/Forward Earnings ratio of 20.76, KO is valued on the expensive side.

KO's Price/Forward Earnings ratio is in line with the industry average.

KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	23.57
Fwd PE	20.76

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KO is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	22.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

KO has an outstanding profitability rating, which may justify a higher PE ratio.

PEG (NY)3.59

PEG (5Y)3.67

EPS Next 2Y7.29%

EPS Next 3Y7.27%

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5. Dividend

5.1 Amount

KO has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.

KO's Dividend Yield is a higher than the industry average which is at 2.73.

Compared to an average S&P500 Dividend Yield of 2.34, KO pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	2.89%

5.2 History

The dividend of KO has a limited annual growth rate of 3.93%.

KO has paid a dividend for at least 10 years, which is 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)3.93%

Div Incr Years34

Div Non Decr Years34

5.3 Sustainability

69.42% of the earnings are spent on dividend by KO. This is not a sustainable payout ratio.

The dividend of KO is growing, but earnings are growing more, so the dividend growth is sustainable.

DP69.42%

EPS Next 2Y7.29%

EPS Next 3Y7.27%

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COCA-COLA CO/THE

NYSE:KO (8/27/2025, 7:10:34 PM)

After market: 68.9 +0.07 (+0.1%)

68.83

+0.1 (+0.15%)

Chartmill FA Rating

GICS SectorConsumer Staples

GICS IndustryGroupFood, Beverage & Tobacco

GICS IndustryBeverages

Earnings (Last)07-22 2025-07-22/bmo

Earnings (Next)10-21 2025-10-21/bmo

Inst Owners65.22%

Inst Owner Change-0.71%

Ins Owners0.57%

Ins Owner Change-1.49%

Market Cap296.22B

Analysts82.16

Price Target79.2 (15.07%)

Short Float %0.91%

Short Ratio2.3

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.89%

Yearly Dividend1.94

Dividend Growth(5Y)3.93%

DP69.42%

Div Incr Years34

Div Non Decr Years34

Ex-Date09-15 2025-09-15 (0.51)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)0.39%

Min EPS beat(2)-0.7%

Max EPS beat(2)1.47%

EPS beat(4)3

Avg EPS beat(4)1.17%

Min EPS beat(4)-0.7%

Max EPS beat(4)3.5%

EPS beat(8)6

Avg EPS beat(8)0.9%

EPS beat(12)9

Avg EPS beat(12)1.43%

EPS beat(16)13

Avg EPS beat(16)2.58%

Revenue beat(2)0

Avg Revenue beat(2)-2.28%

Min Revenue beat(2)-2.34%

Max Revenue beat(2)-2.22%

Revenue beat(4)2

Avg Revenue beat(4)-0.21%

Min Revenue beat(4)-2.34%

Max Revenue beat(4)3.7%

Revenue beat(8)4

Avg Revenue beat(8)0.06%

Revenue beat(12)5

Avg Revenue beat(12)-0.14%

Revenue beat(16)8

Avg Revenue beat(16)0.53%

PT rev (1m)-0.33%

PT rev (3m)0.17%

EPS NQ rev (1m)-0.51%

EPS NQ rev (3m)-1.13%

EPS NY rev (1m)0.46%

EPS NY rev (3m)0.44%

Revenue NQ rev (1m)-0.02%

Revenue NQ rev (3m)1.37%

Revenue NY rev (1m)0.71%

Revenue NY rev (3m)0.75%

Valuation

		Industry Rank	Sector Rank
PE	23.57
Fwd PE	20.76
P/S	6.29
P/FCF	N/A
P/OCF	227.69
P/B	10.36
P/tB	N/A
EV/EBITDA	22.13

EPS(TTM)2.92

EY4.24%

EPS(NY)3.32

Fwd EY4.82%

FCF(TTM)-0.17

FCFYN/A

OCF(TTM)0.3

OCFY0.44%

SpS10.94

BVpS6.64

TBVpS-0.86

PEG (NY)3.59

PEG (5Y)3.67

Profitability

		Industry Rank	Sector Rank
ROA	11.68%
ROE	42.62%
ROCE	16.33%
ROIC	12.72%
ROICexc	15.23%
ROICexgc	27.45%
OM	28.59%
PM (TTM)	25.89%
GM	61.43%
FCFM	N/A

ROA(3y)10.61%

ROA(5y)10.21%

ROE(3y)41.22%

ROE(5y)41.26%

ROIC(3y)11.98%

ROIC(5y)11.6%

ROICexc(3y)14.47%

ROICexc(5y)13.91%

ROICexgc(3y)29.82%

ROICexgc(5y)28.22%

ROCE(3y)15.16%

ROCE(5y)14.68%

ROICexcg growth 3Y0.46%

ROICexcg growth 5Y2.21%

ROICexc growth 3Y2.32%

ROICexc growth 5Y0.14%

OM growth 3Y-5.6%

OM growth 5Y-3.48%

PM growth 3Y-3.68%

PM growth 5Y-1.15%

GM growth 3Y0.44%

GM growth 5Y0.1%

F-Score6

Asset Turnover0.45

Health

		Industry Rank	Sector Rank
Debt/Equity	1.73
Debt/FCF	N/A
Debt/EBITDA	3.39
Cap/Depr	185.6%
Cap/Sales	4.3%
Interest Coverage	250
Cash Conversion	8.94%
Profit Quality	N/A
Current Ratio	1.21
Quick Ratio	0.98
Altman-Z	4.33

F-Score6

WACC8.17%

ROIC/WACC1.56

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)4.66%

EPS 3Y7.32%

EPS 5Y6.42%

EPS Q2Q%3.57%

EPS Next Y6.56%

EPS Next 2Y7.29%

EPS Next 3Y7.27%

EPS Next 5Y6.8%

Revenue 1Y (TTM)1.28%

Revenue growth 3Y6.78%

Revenue growth 5Y4.78%

Sales Q2Q%2.47%

Revenue Next Year4.93%

Revenue Next 2Y5.34%

Revenue Next 3Y5.3%

Revenue Next 5Y5.07%

EBIT growth 1Y19.36%

EBIT growth 3Y0.8%

EBIT growth 5Y1.13%

EBIT Next Year16.19%

EBIT Next 3Y9.52%

EBIT Next 5Y7.26%

FCF growth 1Y-107.61%

FCF growth 3Y-25.04%

FCF growth 5Y-10.85%

OCF growth 1Y-88.28%

OCF growth 3Y-18.62%

OCF growth 5Y-8.26%

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

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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