COCA-COLA CO/THE (1KO.MI) Stock Fundamental Analysis
BIT:1KO - Euronext Milan - US1912161007 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1KO. 1KO was compared to 25 industry peers in the Beverages industry. 1KO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1KO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1KO was profitable.
1KO had a positive operating cash flow in the past year.
Each year in the past 5 years 1KO has been profitable.
1KO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.57%, 1KO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 42.77%, 1KO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Return On Invested Capital of 1KO (12.61%) is better than 88.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1KO is significantly above the industry average of 7.88%.
| 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
With an excellent Profit Margin value of 22.59%, 1KO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1KO's Profit Margin has been stable in the last couple of years.
1KO has a better Operating Margin (25.09%) than 69.23% of its industry peers.
1KO's Operating Margin has declined in the last couple of years.
1KO's Gross Margin of 61.06% is amongst the best of the industry. 1KO outperforms 92.31% 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
1KO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
1KO has about the same amout of shares outstanding than it did 1 year ago.
1KO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1KO has a worse debt to assets ratio.
2.2 Solvency
1KO has an Altman-Z score of 4.36. This indicates that 1KO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.36, 1KO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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.
The Debt to FCF ratio of 1KO (9.39) is comparable to the rest of the industry.
1KO has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1KO (1.77) is worse than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.53
WACC8.24%
2.3 Liquidity
1KO has a Current Ratio of 1.03. This is a normal value and indicates that 1KO is financially healthy and should not expect problems in meeting 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.
With an excellent Quick ratio value of 0.84, 1KO belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
1KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.06%.
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%.
The Revenue has been growing slightly by 4.78% on average over the past years.
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.
Based on estimates for the next years, 1KO will show a small growth in Revenue. The Revenue will grow by 4.57% on average per year.
EPS Next Y5.72%
EPS Next 2Y6.84%
EPS Next 3Y7.13%
EPS Next 5Y6.66%
Revenue Next Year3.81%
Revenue Next 2Y4.48%
Revenue Next 3Y4.91%
Revenue Next 5Y4.57%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.83, 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 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1KO is valued at the same level.
With a Price/Forward Earnings ratio of 23.46, 1KO is valued on the expensive side.
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 76.92% of the companies listed in the same industry.
1KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 23.46 |
4.2 Price Multiples
80.77% of the companies in the same industry are cheaper than 1KO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1KO is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.8 | ||
| EV/EBITDA | 25.77 |
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)4.34
PEG (5Y)3.87
EPS Next 2Y6.84%
EPS Next 3Y7.13%
5. Dividend
5.1 Amount
1KO has a Yearly Dividend Yield of 2.90%.
Compared to an average industry Dividend Yield of 2.64, 1KO pays a bit more dividend than its industry peers.
1KO's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
78.63% of the earnings are spent on dividend by 1KO. This is not a sustainable payout ratio.
The dividend of 1KO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.63%
EPS Next 2Y6.84%
EPS Next 3Y7.13%
BIT:1KO (3/7/2025, 7:00:00 PM)
65.79
+1.2 (+1.86%)
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 Cap282.96B
Analysts80.56
Price Target72.43 (10.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend1.79
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)4.83%
PT rev (3m)1.72%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 23.46 | ||
| P/S | 6.53 | ||
| P/FCF | 64.8 | ||
| P/OCF | 45.15 | ||
| P/B | 12.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.77 |
EPS(TTM)2.65
EY4.03%
EPS(NY)2.8
Fwd EY4.26%
FCF(TTM)1.02
FCFY1.54%
OCF(TTM)1.46
OCFY2.22%
SpS10.08
BVpS5.32
TBVpS-1.41
PEG (NY)4.34
PEG (5Y)3.87
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 | 4.36 |
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 Y5.72%
EPS Next 2Y6.84%
EPS Next 3Y7.13%
EPS Next 5Y6.66%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%4.17%
Revenue Next Year3.81%
Revenue Next 2Y4.48%
Revenue Next 3Y4.91%
Revenue Next 5Y4.57%
EBIT growth 1Y-10.87%
EBIT growth 3Y-0.32%
EBIT growth 5Y1.05%
EBIT Next Year13.08%
EBIT Next 3Y9.95%
EBIT Next 5Y7.91%
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%