COCA-COLA CO/THE (KO)

US1912161007 - Common Stock

61.2  +0.17 (+0.28%)

Fundamental Rating

5

KO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. While KO has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, KO is valued expensive at the moment. Finally 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.
KO had positive earnings in each of the past 5 years.
KO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

KO's Return On Assets of 10.97% is fine compared to the rest of the industry. KO outperforms 78.79% of its industry peers.
KO has a better Return On Equity (41.30%) than 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.85%, KO is in the better half of the industry, outperforming 72.73% 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 12.38%.
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

KO has a better Profit Margin (23.42%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of KO has grown nicely.
Looking at the Operating Margin, with a value of 28.95%, KO belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Operating Margin of KO has remained more or less at the same level.
The Gross Margin of KO (59.52%) is better than 90.91% of its industry peers.
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.
The number of shares outstanding for KO has been reduced compared to 1 year ago.
The number of shares outstanding for KO has been increased compared to 5 years ago.
Compared to 1 year ago, KO has a worse debt to assets ratio.

2.2 Solvency

KO has an Altman-Z score of 4.21. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
KO has a Altman-Z score of 4.21. This is in the better half of the industry: KO outperforms 75.76% 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.
Looking at the Debt to FCF ratio, with a value of 4.32, KO is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
KO has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
KO has a worse Debt to Equity ratio (1.55) than 81.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.32
Altman-Z 4.21
ROIC/WACC1.71
WACC8.08%

2.3 Liquidity

A Current Ratio of 1.13 indicates that KO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, KO is doing worse than 69.70% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that KO may have some problems paying its short term obligations.
KO has a Quick ratio (0.95) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.95

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.47% over the past year.
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

Based on estimates for the next years, KO will show a small growth in Earnings Per Share. The EPS will grow by 7.47% on average per year.
Based on estimates for the next years, KO will show a small growth in Revenue. The Revenue will grow by 4.40% on average per year.
EPS Next Y7.61%
EPS Next 2Y7.19%
EPS Next 3Y7.1%
EPS Next 5Y7.47%
Revenue Next Year0.6%
Revenue Next 2Y2.76%
Revenue Next 3Y3.7%
Revenue Next 5Y4.4%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.75, which indicates a rather expensive current valuation of KO.
Based on the Price/Earnings ratio, KO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.42, KO is valued at the same level.
With a Price/Forward Earnings ratio of 21.14, KO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as KO.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, KO is valued at the same level.
Industry RankSector Rank
PE 22.75
Fwd PE 21.14

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 60.61% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KO indicates a somewhat cheap valuation: KO is cheaper than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 27.08
EV/EBITDA 19.67

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)2.99
PEG (5Y)4.39
EPS Next 2Y7.19%
EPS Next 3Y7.1%

7

5. Dividend

5.1 Amount

KO has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
KO's Dividend Yield is rather good when compared to the industry average which is at 2.45. KO pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.21%

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

KO pays out 74.22% of its income as dividend. 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 2Y7.19%
EPS Next 3Y7.1%

COCA-COLA CO/THE

NYSE:KO (3/28/2024, 11:04:10 AM)

61.2

+0.17 (+0.28%)

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 Cap263.92B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.21%
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 22.75
Fwd PE 21.14
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)2.99
PEG (5Y)4.39
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 Y7.61%
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