COCA-COLA CO/THE (1KO.MI) Stock Fundamental Analysis
BIT:1KO - Euronext Milan - US1912161007 - Common Stock - Currency: EUR
Overall 1KO gets a fundamental rating of 5 out of 10. We evaluated 1KO against 24 industry peers in the Beverages industry. 1KO scores excellent on profitability, but there are some minor concerns on its financial health. 1KO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1KO had positive earnings in the past year.
1KO had a positive operating cash flow in the past year.
In the past 5 years 1KO has always been profitable.
Each year in the past 5 years 1KO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1KO (10.57%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 42.77%, 1KO belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
1KO has a better Return On Invested Capital (12.61%) than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1KO is above the industry average of 8.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 42.77% | ||
| ROIC | 12.61% |
ROA(3y)10.61%
ROA(5y)10.21%
ROE(3y)41.22%
ROE(5y)41.26%
ROIC(3y)12.93%
ROIC(5y)12.26%
1.3 Margins
1KO has a better Profit Margin (22.59%) than 100.00% of its industry peers.
1KO's Profit Margin has been stable in the last couple of years.
1KO's Operating Margin of 25.09% is fine compared to the rest of the industry. 1KO outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of 1KO has declined.
The Gross Margin of 1KO (61.06%) is better than 91.67% of its industry peers.
In the last couple of years the Gross Margin of 1KO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.09% | ||
| PM (TTM) | 22.59% | ||
| GM | 61.06% |
OM growth 3Y-6.65%
OM growth 5Y-3.56%
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), 1KO is creating some value.
The number of shares outstanding for 1KO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1KO has more shares outstanding
The debt/assets ratio for 1KO is higher compared to a year ago.
2.2 Solvency
1KO has an Altman-Z score of 4.41. This indicates that 1KO is financially healthy and has little risk of bankruptcy at the moment.
1KO's Altman-Z score of 4.41 is amongst the best of the industry. 1KO outperforms 91.67% of its industry peers.
The Debt to FCF ratio of 1KO is 9.39, which is on the high side as it means it would take 1KO, 9.39 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.39, 1KO is in line with its industry, outperforming 54.17% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that 1KO has dependencies on debt financing.
1KO's Debt to Equity ratio of 1.77 is on the low side compared to the rest of the industry. 1KO is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 4.41 |
ROIC/WACC1.53
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.03 indicates that 1KO should not have too much problems paying its short term obligations.
1KO has a Current ratio (1.03) which is in line with its industry peers.
A Quick Ratio of 0.84 indicates that 1KO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, 1KO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.06% over the past year.
1KO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.
1KO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.86%.
Measured over the past years, 1KO shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
EPS 1Y (TTM)7.06%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%12.24%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%4.17%
3.2 Future
1KO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.66% yearly.
1KO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
EPS Next Y5.75%
EPS Next 2Y6.78%
EPS Next 3Y7.02%
EPS Next 5Y6.66%
Revenue Next Year3.9%
Revenue Next 2Y4.52%
Revenue Next 3Y4.9%
Revenue Next 5Y4.76%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.79, 1KO is valued on the expensive side.
1KO's Price/Earnings ratio is a bit more expensive when compared to the industry. 1KO is more expensive than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. 1KO is around the same levels.
Based on the Price/Forward Earnings ratio of 23.43, the valuation of 1KO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1KO indicates a slightly more expensive valuation: 1KO is more expensive than 75.00% of the companies listed in the same industry.
1KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 23.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1KO indicates a rather expensive valuation: 1KO more expensive than 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1KO is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.77 | ||
| EV/EBITDA | 26.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1KO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.31
PEG (5Y)3.86
EPS Next 2Y6.78%
EPS Next 3Y7.02%
5. Dividend
5.1 Amount
1KO has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
1KO's Dividend Yield is a higher than the industry average which is at 2.80.
1KO's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of 1KO has a limited annual growth rate of 3.93%.
Dividend Growth(5Y)3.93%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1KO pays out 78.63% of its income as dividend. This is not a sustainable payout ratio.
1KO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.63%
EPS Next 2Y6.78%
EPS Next 3Y7.02%
BIT:1KO (4/25/2025, 7:00:00 PM)
62.72
-1.27 (-1.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners64.53%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner ChangeN/A
Market Cap269.92B
Analysts80.56
Price Target70.88 (13.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend1.71
Dividend Growth(5Y)3.93%
DP78.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.96%
Min EPS beat(2)0.43%
Max EPS beat(2)3.5%
EPS beat(4)4
Avg EPS beat(4)1.36%
Min EPS beat(4)0.28%
Max EPS beat(4)3.5%
EPS beat(8)7
Avg EPS beat(8)1.71%
EPS beat(12)10
Avg EPS beat(12)2.1%
EPS beat(16)14
Avg EPS beat(16)3.98%
Revenue beat(2)2
Avg Revenue beat(2)1.86%
Min Revenue beat(2)0.03%
Max Revenue beat(2)3.7%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)3.7%
Revenue beat(8)4
Avg Revenue beat(8)0.33%
Revenue beat(12)7
Avg Revenue beat(12)0.88%
Revenue beat(16)10
Avg Revenue beat(16)1.26%
PT rev (1m)-2.14%
PT rev (3m)-2.56%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 23.43 | ||
| P/S | 6.52 | ||
| P/FCF | 64.77 | ||
| P/OCF | 45.12 | ||
| P/B | 12.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.24 |
EPS(TTM)2.53
EY4.03%
EPS(NY)2.68
Fwd EY4.27%
FCF(TTM)0.97
FCFY1.54%
OCF(TTM)1.39
OCFY2.22%
SpS9.61
BVpS5.08
TBVpS-1.34
PEG (NY)4.31
PEG (5Y)3.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 42.77% | ||
| ROCE | 15.68% | ||
| ROIC | 12.61% | ||
| ROICexc | 15.56% | ||
| ROICexgc | 31.45% | ||
| OM | 25.09% | ||
| PM (TTM) | 22.59% | ||
| GM | 61.06% | ||
| FCFM | 10.07% |
ROA(3y)10.61%
ROA(5y)10.21%
ROE(3y)41.22%
ROE(5y)41.26%
ROIC(3y)12.93%
ROIC(5y)12.26%
ROICexc(3y)15.62%
ROICexc(5y)14.7%
ROICexgc(3y)32.19%
ROICexgc(5y)29.87%
ROCE(3y)16.38%
ROCE(5y)15.53%
ROICexcg growth 3Y-0.66%
ROICexcg growth 5Y2.12%
ROICexc growth 3Y1.18%
ROICexc growth 5Y0.05%
OM growth 3Y-6.65%
OM growth 5Y-3.56%
PM growth 3Y-3.68%
PM growth 5Y-1.15%
GM growth 3Y0.44%
GM growth 5Y0.1%
F-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.39 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 192% | ||
| Cap/Sales | 4.39% | ||
| Interest Coverage | 7.07 | ||
| Cash Conversion | 52.83% | ||
| Profit Quality | 44.6% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 4.41 |
F-Score4
WACC8.24%
ROIC/WACC1.53
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)7.06%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%12.24%
EPS Next Y5.75%
EPS Next 2Y6.78%
EPS Next 3Y7.02%
EPS Next 5Y6.66%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%4.17%
Revenue Next Year3.9%
Revenue Next 2Y4.52%
Revenue Next 3Y4.9%
Revenue Next 5Y4.76%
EBIT growth 1Y-10.87%
EBIT growth 3Y-0.32%
EBIT growth 5Y1.05%
EBIT Next Year15.34%
EBIT Next 3Y9.67%
EBIT Next 5Y6.76%
FCF growth 1Y-51.36%
FCF growth 3Y-25.04%
FCF growth 5Y-10.85%
OCF growth 1Y-41.33%
OCF growth 3Y-18.62%
OCF growth 5Y-8.26%