COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - NYSE:KO - US1912161007 - Common Stock
71.16 USD
+0.09 (+0.13%)
71.1 USD
-0.06 (-0.08%)
We assign a fundamental rating of 5 out of 10 to KO. KO was compared to 33 industry peers in the Beverages industry. While KO belongs to the best of the industry regarding profitability, there are concerns on its financial health. KO has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years KO has been profitable.
Each year in the past 5 years KO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.29%, KO belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
With an excellent Return On Equity value of 41.70%, KO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.17%, KO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
KO had an Average Return On Invested Capital over the past 3 years of 11.98%. This is in line with the industry average of 10.84%.
The 3 year average ROIC (11.98%) for KO is below the current ROIC(14.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.29% | ||
| ROE | 41.7% | ||
| ROIC | 14.17% |
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 27.34% 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.
KO's Operating Margin of 31.14% is amongst the best of the industry. KO outperforms 96.97% of its industry peers.
In the last couple of years the Operating Margin of KO has declined.
The Gross Margin of KO (61.63%) is better than 96.97% 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 | 31.14% | ||
| PM (TTM) | 27.34% | ||
| GM | 61.63% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KO is creating some value.
The number of shares outstanding for KO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KO has more shares outstanding
Compared to 1 year ago, KO has a worse debt to assets ratio.
2.2 Solvency
KO has an Altman-Z score of 4.48. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
KO has a better Altman-Z score (4.48) than 75.76% of its industry peers.
KO has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as KO would need 8.51 years to pay back of all of its debts.
KO's Debt to FCF ratio of 8.51 is in line compared to the rest of the industry. KO outperforms 45.45% of its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that KO has dependencies on debt financing.
KO has a worse Debt to Equity ratio (1.46) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.76
WACC8.06%
2.3 Liquidity
KO has a Current Ratio of 1.21. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.21, KO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that KO may have some problems paying its short term obligations.
KO's Quick ratio of 1.00 is fine compared to the rest of the industry. KO outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.32%.
The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 2.80% in the last year.
The Revenue has been growing slightly by 4.78% on average over the past years.
EPS 1Y (TTM)5.32%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%6.49%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%3.87%
3.2 Future
The Earnings Per Share is expected to grow by 7.18% 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 3.00% on average per year.
EPS Next Y6.78%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
EPS Next 5Y7.18%
Revenue Next Year4.47%
Revenue Next 2Y4.73%
Revenue Next 3Y4.56%
Revenue Next 5Y3%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
KO is valuated rather expensively with a Price/Earnings ratio of 23.96.
KO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KO to the average of the S&P500 Index (25.89), we can say KO is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.45, KO is valued on the expensive side.
KO's Price/Forward Earnings is on the same level as the industry average.
KO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KO is valued a bit more expensive than 60.61% of the companies in the same industry.
KO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. KO is more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.98 | ||
| EV/EBITDA | 20.85 |
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)3.53
PEG (5Y)3.73
EPS Next 2Y7.32%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.95%, KO has a reasonable but not impressive dividend return.
KO's Dividend Yield is a higher than the industry average which is at 3.11.
Compared to an average S&P500 Dividend Yield of 2.36, KO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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
5.3 Sustainability
KO pays out 65.04% 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.
DP65.04%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
71.16
+0.09 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.62%
Inst Owner Change-0.18%
Ins Owners0.57%
Ins Owner Change-0.4%
Market Cap306.25B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target79.4 (11.58%)
Short Float %0.86%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend1.94
Dividend Growth(5Y)3.93%
DP65.04%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.91%
Min EPS beat(2)1.47%
Max EPS beat(2)2.35%
EPS beat(4)3
Avg EPS beat(4)1.66%
Min EPS beat(4)-0.7%
Max EPS beat(4)3.5%
EPS beat(8)6
Avg EPS beat(8)0.75%
EPS beat(12)9
Avg EPS beat(12)1.19%
EPS beat(16)13
Avg EPS beat(16)2.16%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-2.77%
Max Revenue beat(2)-2.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)3.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)0.95%
PT rev (3m)-0.08%
EPS NQ rev (1m)-5.09%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 21.45 | ||
| P/S | 6.43 | ||
| P/FCF | 54.98 | ||
| P/OCF | 40.28 | ||
| P/B | 9.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.85 |
EPS(TTM)2.97
EY4.17%
EPS(NY)3.32
Fwd EY4.66%
FCF(TTM)1.29
FCFY1.82%
OCF(TTM)1.77
OCFY2.48%
SpS11.07
BVpS7.26
TBVpS-0.22
PEG (NY)3.53
PEG (5Y)3.73
Graham Number22.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.29% | ||
| ROE | 41.7% | ||
| ROCE | 17.76% | ||
| ROIC | 14.17% | ||
| ROICexc | 17.36% | ||
| ROICexgc | 32.1% | ||
| OM | 31.14% | ||
| PM (TTM) | 27.34% | ||
| GM | 61.63% | ||
| FCFM | 11.69% |
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%
ROICexgc growth 3Y0.46%
ROICexgc 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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 186.51% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.73% | ||
| Profit Quality | 42.74% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 4.48 |
F-Score7
WACC8.06%
ROIC/WACC1.76
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)5.32%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%6.49%
EPS Next Y6.78%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
EPS Next 5Y7.18%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%3.87%
Revenue Next Year4.47%
Revenue Next 2Y4.73%
Revenue Next 3Y4.56%
Revenue Next 5Y3%
EBIT growth 1Y40.28%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year16.47%
EBIT Next 3Y10.32%
EBIT Next 5Y8.03%
FCF growth 1Y-45.23%
FCF growth 3Y-25.04%
FCF growth 5Y-10.85%
OCF growth 1Y-36%
OCF growth 3Y-18.62%
OCF growth 5Y-8.26%
COCA-COLA CO/THE / KO FAQ
What is the ChartMill fundamental rating of COCA-COLA CO/THE (KO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KO.
What is the valuation status of COCA-COLA CO/THE (KO) stock?
ChartMill assigns a valuation rating of 2 / 10 to COCA-COLA CO/THE (KO). This can be considered as Overvalued.
What is the profitability of KO stock?
COCA-COLA CO/THE (KO) has a profitability rating of 8 / 10.
What are the PE and PB ratios of COCA-COLA CO/THE (KO) stock?
The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 23.96 and the Price/Book (PB) ratio is 9.8.
What is the financial health of COCA-COLA CO/THE (KO) stock?
The financial health rating of COCA-COLA CO/THE (KO) is 3 / 10.