COCA-COLA CO/THE (1KO.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1KO • US1912161007
62.2 EUR
+0.74 (+1.2%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to 1KO. 1KO was compared to 29 industry peers in the Beverages industry. 1KO has an excellent profitability rating, but there are some minor concerns on its financial health. 1KO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1KO was profitable.
- In the past year 1KO had a positive cash flow from operations.
- In the past 5 years 1KO has always been profitable.
- In the past 5 years 1KO always reported a positive cash flow from operatings.
1.2 Ratios
- 1KO has a better Return On Assets (12.29%) than 96.55% of its industry peers.
- 1KO has a better Return On Equity (41.70%) than 96.55% of its industry peers.
- With an excellent Return On Invested Capital value of 14.17%, 1KO belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1KO is above the industry average of 7.93%.
- The last Return On Invested Capital (14.17%) for 1KO is above the 3 year average (11.98%), which is a sign of increasing profitability.
| 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
- 1KO's Profit Margin of 27.34% is amongst the best of the industry. 1KO outperforms 96.55% of its industry peers.
- In the last couple of years the Profit Margin of 1KO has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 31.14%, 1KO belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1KO has declined.
- 1KO's Gross Margin of 61.63% is amongst the best of the industry. 1KO outperforms 93.10% of its industry peers.
- 1KO's Gross Margin has been stable in the last couple of years.
| 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), 1KO is creating some value.
- Compared to 1 year ago, 1KO has about the same amount of shares outstanding.
- Compared to 5 years ago, 1KO has more shares outstanding
- Compared to 1 year ago, 1KO has a worse debt to assets ratio.
2.2 Solvency
- 1KO has an Altman-Z score of 4.58. This indicates that 1KO is financially healthy and has little risk of bankruptcy at the moment.
- 1KO's Altman-Z score of 4.58 is amongst the best of the industry. 1KO outperforms 96.55% of its industry peers.
- The Debt to FCF ratio of 1KO is 8.51, which is on the high side as it means it would take 1KO, 8.51 years of fcf income to pay off all of its debts.
- 1KO has a Debt to FCF ratio (8.51) which is in line with its industry peers.
- 1KO has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.46, 1KO is doing worse than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.75
WACC8.1%
2.3 Liquidity
- 1KO has a Current Ratio of 1.21. This is a normal value and indicates that 1KO is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.21, 1KO perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
- 1KO has a Quick Ratio of 1.21. This is a bad value and indicates that 1KO is not financially healthy enough and could expect problems in meeting its short term obligations.
- With an excellent Quick ratio value of 1.00, 1KO belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.32% 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 2.80%.
- 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)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
- Based on estimates for the next years, 1KO will show a small growth in Earnings Per Share. The EPS will grow by 7.18% on average per year.
- 1KO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y6.91%
EPS Next 2Y7.31%
EPS Next 3Y7.38%
EPS Next 5Y7.18%
Revenue Next Year4.47%
Revenue Next 2Y4.79%
Revenue Next 3Y4.61%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.98 indicates a rather expensive valuation of 1KO.
- 1KO's Price/Earnings ratio is a bit more expensive when compared to the industry. 1KO is more expensive than 62.07% of the companies in the same industry.
- 1KO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 22.35, which indicates a rather expensive current valuation of 1KO.
- 1KO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1KO is more expensive than 75.86% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, 1KO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 22.35 |
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 86.21% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1KO indicates a rather expensive valuation: 1KO more expensive than 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.25 | ||
| EV/EBITDA | 21.67 |
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)3.61
PEG (5Y)3.89
EPS Next 2Y7.31%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
- 1KO has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
- 1KO's Dividend Yield is comparable with the industry average which is at 2.72.
- 1KO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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 65.04% 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.
DP65.04%
EPS Next 2Y7.31%
EPS Next 3Y7.38%
COCA-COLA CO/THE / 1KO.MI FAQ
What is the fundamental rating for 1KO stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1KO.MI.
What is the valuation status of COCA-COLA CO/THE (1KO.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to COCA-COLA CO/THE (1KO.MI). This can be considered as Overvalued.
What is the profitability of 1KO stock?
COCA-COLA CO/THE (1KO.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of COCA-COLA CO/THE (1KO.MI) stock?
The Price/Earnings (PE) ratio for COCA-COLA CO/THE (1KO.MI) is 24.98 and the Price/Book (PB) ratio is 10.21.
What is the earnings growth outlook for COCA-COLA CO/THE?
The Earnings per Share (EPS) of COCA-COLA CO/THE (1KO.MI) is expected to grow by 6.91% in the next year.