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 23 industry peers in the Beverages industry. While 1KO has a great profitability rating, there are quite some 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.
In the past year 1KO had a positive cash flow from operations.
In the past 5 years 1KO has always 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 10.60%, 1KO belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
1KO's Return On Equity of 41.16% is amongst the best of the industry. 1KO outperforms 86.96% of its industry peers.
1KO's Return On Invested Capital of 11.60% is amongst the best of the industry. 1KO outperforms 82.61% of its industry peers.
1KO had an Average Return On Invested Capital over the past 3 years of 12.93%. This is significantly above the industry average of 7.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 41.16% | ||
| ROIC | 11.6% |
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 (23.00%) than 95.65% 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 25.13%, 1KO is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
In the last couple of years the Operating Margin of 1KO has declined.
1KO has a Gross Margin of 61.07%. This is amongst the best in the industry. 1KO outperforms 86.96% 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 | 25.13% | ||
| PM (TTM) | 23% | ||
| GM | 61.07% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1KO is still creating some value.
Compared to 1 year ago, 1KO has about the same amount of shares outstanding.
1KO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1KO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.40 indicates that 1KO is not in any danger for bankruptcy at the moment.
1KO's Altman-Z score of 4.40 is amongst the best of the industry. 1KO outperforms 95.65% of its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that 1KO has dependencies on debt financing.
1KO has a Debt to Equity ratio of 1.87. This is in the lower half of the industry: 1KO underperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.4 |
ROIC/WACC1.42
WACC8.17%
2.3 Liquidity
1KO has a Current Ratio of 1.10. This is a normal value and indicates that 1KO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1KO (1.10) is comparable to the rest of the industry.
1KO has a Quick Ratio of 1.10. This is a bad value and indicates that 1KO is not financially healthy enough and could expect problems in meeting its short term obligations.
1KO's Quick ratio of 0.89 is amongst the best of the industry. 1KO outperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
1KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.86%.
1KO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.
The Revenue has been growing slightly by 1.77% in the past year.
1KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.
EPS 1Y (TTM)5.86%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%1.39%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%-0.13%
3.2 Future
The Earnings Per Share is expected to grow by 6.63% on average over the next years.
Based on estimates for the next years, 1KO will show a small growth in Revenue. The Revenue will grow by 4.91% on average per year.
EPS Next Y6.08%
EPS Next 2Y6.93%
EPS Next 3Y7.06%
EPS Next 5Y6.63%
Revenue Next Year4.21%
Revenue Next 2Y4.76%
Revenue Next 3Y5.06%
Revenue Next 5Y4.91%
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
1KO is valuated quite expensively with a Price/Earnings ratio of 25.02.
Compared to the rest of the industry, the Price/Earnings ratio of 1KO indicates a slightly more expensive valuation: 1KO is more expensive than 60.87% of the companies listed in the same industry.
1KO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 21.93, the valuation of 1KO can be described as rather expensive.
1KO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1KO is more expensive than 78.26% of the companies in the same industry.
1KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
91.30% of the companies in the same industry are cheaper than 1KO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1KO may justify a higher PE ratio.
PEG (NY)4.11
PEG (5Y)3.9
EPS Next 2Y6.93%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
1KO has a Yearly Dividend Yield of 2.86%.
Compared to an average industry Dividend Yield of 2.93, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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
77.42% 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.
DP77.42%
EPS Next 2Y6.93%
EPS Next 3Y7.06%
BIT:1KO (7/1/2025, 7:00:00 PM)
61.29
+1.37 (+2.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.16%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner ChangeN/A
Market Cap263.79B
Analysts81.67
Price Target69.32 (13.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.65
Dividend Growth(5Y)3.93%
DP77.42%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-0.7%
Max EPS beat(2)3.5%
EPS beat(4)3
Avg EPS beat(4)1.11%
Min EPS beat(4)-0.7%
Max EPS beat(4)3.5%
EPS beat(8)6
Avg EPS beat(8)1.33%
EPS beat(12)9
Avg EPS beat(12)1.44%
EPS beat(16)13
Avg EPS beat(16)3.57%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)3.7%
Revenue beat(4)3
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)3.7%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)-0.22%
PT rev (3m)-0.53%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 21.93 | ||
| P/S | 6.63 | ||
| P/FCF | N/A | ||
| P/OCF | 289.12 | ||
| P/B | 11.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.07 |
EPS(TTM)2.45
EY4%
EPS(NY)2.79
Fwd EY4.56%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)0.21
OCFY0.35%
SpS9.25
BVpS5.17
TBVpS-1.1
PEG (NY)4.11
PEG (5Y)3.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 41.16% | ||
| ROCE | 15.12% | ||
| ROIC | 11.6% | ||
| ROICexc | 13.89% | ||
| ROICexgc | 25.57% | ||
| OM | 25.13% | ||
| PM (TTM) | 23% | ||
| GM | 61.07% | ||
| FCFM | N/A |
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 185.46% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 8.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 4.4 |
F-Score5
WACC8.17%
ROIC/WACC1.42
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)5.86%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%1.39%
EPS Next Y6.08%
EPS Next 2Y6.93%
EPS Next 3Y7.06%
EPS Next 5Y6.63%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%-0.13%
Revenue Next Year4.21%
Revenue Next 2Y4.76%
Revenue Next 3Y5.06%
Revenue Next 5Y4.91%
EBIT growth 1Y-12.62%
EBIT growth 3Y-0.32%
EBIT growth 5Y1.05%
EBIT Next Year15.75%
EBIT Next 3Y9.88%
EBIT Next 5Y7.57%
FCF growth 1Y-110.3%
FCF growth 3Y-25.04%
FCF growth 5Y-10.85%
OCF growth 1Y-89.82%
OCF growth 3Y-18.62%
OCF growth 5Y-8.26%