91.03 USD
+0.26 (+0.29%)
91.03 USD
0 (0%)
CCEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. While CCEP is still in line with the averages on profitability rating, there are concerns on its financial health. CCEP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- CCEP had positive earnings in the past year.
- CCEP had a positive operating cash flow in the past year.
- Each year in the past 5 years CCEP has been profitable.
- CCEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CCEP has a Return On Assets (4.83%) which is comparable to the rest of the industry.
- The Return On Equity of CCEP (19.11%) is better than 62.50% of its industry peers.
- CCEP has a Return On Invested Capital of 7.78%. This is comparable to the rest of the industry: CCEP outperforms 50.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CCEP is below the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 19.11% | ||
| ROIC | 7.78% |
ROA(3y)5.14%
ROA(5y)4.27%
ROE(3y)19.29%
ROE(5y)16.02%
ROIC(3y)7.81%
ROIC(5y)6.59%
1.3 Margins
- CCEP has a Profit Margin (7.35%) which is comparable to the rest of the industry.
- CCEP's Profit Margin has declined in the last couple of years.
- The Operating Margin of CCEP (11.13%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CCEP has declined.
- Looking at the Gross Margin, with a value of 35.20%, CCEP is doing worse than 84.38% of the companies in the same industry.
- CCEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.13% | ||
| PM (TTM) | 7.35% | ||
| GM | 35.2% |
OM growth 3Y1.65%
OM growth 5Y-1.62%
PM growth 3Y-0.93%
PM growth 5Y-5.22%
GM growth 3Y-1.58%
GM growth 5Y-1.5%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CCEP is still creating some value.
- CCEP has more shares outstanding than it did 1 year ago.
- CCEP has more shares outstanding than it did 5 years ago.
- CCEP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.05 indicates that CCEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.05, CCEP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- The Debt to FCF ratio of CCEP is 6.04, which is on the high side as it means it would take CCEP, 6.04 years of fcf income to pay off all of its debts.
- CCEP has a Debt to FCF ratio of 6.04. This is in the better half of the industry: CCEP outperforms 65.63% of its industry peers.
- CCEP has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
- CCEP has a worse Debt to Equity ratio (1.26) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.01
WACC7.67%
2.3 Liquidity
- CCEP has a Current Ratio of 0.83. This is a bad value and indicates that CCEP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of CCEP (0.83) is worse than 78.13% of its industry peers.
- CCEP has a Quick Ratio of 0.83. This is a bad value and indicates that CCEP is not financially healthy enough and could expect problems in meeting its short term obligations.
- CCEP has a worse Quick ratio (0.65) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- CCEP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.86%.
- CCEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
- Looking at the last year, CCEP shows a quite strong growth in Revenue. The Revenue has grown by 9.04% in the last year.
- Measured over the past years, CCEP shows a quite strong growth in Revenue. The Revenue has been growing by 11.21% on average per year.
EPS 1Y (TTM)-4.86%
EPS 3Y12.73%
EPS 5Y5.83%
EPS Q2Q%15.03%
Revenue 1Y (TTM)9.04%
Revenue growth 3Y14.09%
Revenue growth 5Y11.21%
Sales Q2Q%4.54%
3.2 Future
- The Earnings Per Share is expected to grow by 8.41% on average over the next years. This is quite good.
- Based on estimates for the next years, CCEP will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y4.26%
EPS Next 2Y6.56%
EPS Next 3Y7.4%
EPS Next 5Y8.41%
Revenue Next Year1.7%
Revenue Next 2Y2.18%
Revenue Next 3Y2.76%
Revenue Next 5Y3.19%
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 accelerating.
- 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
- Based on the Price/Earnings ratio of 22.93, the valuation of CCEP can be described as rather expensive.
- CCEP's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, CCEP is valued at the same level.
- With a Price/Forward Earnings ratio of 16.77, CCEP is valued correctly.
- CCEP's Price/Forward Earnings ratio is in line with the industry average.
- CCEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
- CCEP's Enterprise Value to EBITDA is on the same level as the industry average.
- CCEP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CCEP is cheaper than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.43 | ||
| EV/EBITDA | 14.13 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CCEP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.39
PEG (5Y)3.93
EPS Next 2Y6.56%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
- CCEP has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.66, CCEP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CCEP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
- On average, the dividend of CCEP grows each year by 8.87%, which is quite nice.
- CCEP has been paying a dividend for at least 10 years, so it has a reliable track record.
- CCEP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.87%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- CCEP pays out 60.89% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of CCEP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.89%
EPS Next 2Y6.56%
EPS Next 3Y7.4%
COCA-COLA EUROPACIFIC PARTNE / CCEP FAQ
Can you provide the ChartMill fundamental rating for COCA-COLA EUROPACIFIC PARTNE?
ChartMill assigns a fundamental rating of 4 / 10 to CCEP.
What is the valuation status of COCA-COLA EUROPACIFIC PARTNE (CCEP) stock?
ChartMill assigns a valuation rating of 3 / 10 to COCA-COLA EUROPACIFIC PARTNE (CCEP). This can be considered as Overvalued.
How profitable is COCA-COLA EUROPACIFIC PARTNE (CCEP) stock?
COCA-COLA EUROPACIFIC PARTNE (CCEP) has a profitability rating of 4 / 10.
What is the valuation of COCA-COLA EUROPACIFIC PARTNE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COCA-COLA EUROPACIFIC PARTNE (CCEP) is 22.93 and the Price/Book (PB) ratio is 4.32.
Can you provide the expected EPS growth for CCEP stock?
The Earnings per Share (EPS) of COCA-COLA EUROPACIFIC PARTNE (CCEP) is expected to grow by 4.26% in the next year.