89.865 USD
+0.31 (+0.35%)
CCEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. There are concerns on the financial health of CCEP while its profitability can be described as average. While showing a medium growth rate, CCEP is valued expensive at the moment.
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.
- CCEP had positive earnings in each of the past 5 years.
- CCEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CCEP (4.83%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 19.11%, CCEP is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- CCEP's Return On Invested Capital of 7.78% is in line compared to the rest of the industry. CCEP outperforms 50.00% of its industry peers.
- CCEP had an Average Return On Invested Capital over the past 3 years of 7.81%. This 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
- The Profit Margin of CCEP (7.35%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of CCEP has declined.
- CCEP has a Operating Margin (11.13%) which is in line with its industry peers.
- CCEP's Operating Margin has declined in the last couple of years.
- CCEP has a Gross Margin of 35.20%. This is amonst the worse of the industry: CCEP underperforms 84.38% of its industry peers.
- In the last couple of years the Gross Margin of CCEP has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CCEP is creating some value.
- The number of shares outstanding for CCEP has been increased compared to 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 2.04 indicates that CCEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CCEP has a Altman-Z score (2.04) which is in line with its industry peers.
- CCEP has a debt to FCF ratio of 6.04. This is a slightly negative value and a sign of low solvency as CCEP would need 6.04 years to pay back of 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.
- A Debt/Equity ratio of 1.26 is on the high side and indicates that CCEP has dependencies on debt financing.
- CCEP has a Debt to Equity ratio of 1.26. This is in the lower half of the industry: CCEP underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.02
WACC7.65%
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.
- With a Current ratio value of 0.83, CCEP is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
- A Quick Ratio of 0.65 indicates that CCEP may have some problems paying its short term obligations.
- CCEP has a Quick ratio of 0.65. This is in the lower half of the industry: CCEP underperforms 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%.
- Measured over the past 5 years, CCEP shows a small growth in Earnings Per Share. The EPS has been growing by 5.83% on average per year.
- CCEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.04%.
- The Revenue has been growing by 11.21% on average over the past years. This is quite good.
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
- CCEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.41% yearly.
- CCEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
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.
- 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
- The Price/Earnings ratio is 22.81, which indicates a rather expensive current valuation of CCEP.
- CCEP's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of CCEP to the average of the S&P500 Index (27.25), we can say CCEP is valued inline with the index average.
- CCEP is valuated correctly with a Price/Forward Earnings ratio of 16.69.
- The rest of the industry has a similar Price/Forward Earnings ratio as CCEP.
- CCEP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 16.69 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CCEP.
- Based on the Price/Free Cash Flow ratio, CCEP is valued a bit cheaper than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.34 | ||
| EV/EBITDA | 14.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.36
PEG (5Y)3.91
EPS Next 2Y6.56%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.60%, CCEP has a reasonable but not impressive dividend return.
- CCEP's Dividend Yield is a higher than the industry average which is at 1.66.
- CCEP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
- The dividend of CCEP is nicely growing with an annual growth rate of 8.87%!
- 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 22.81 and the Price/Book (PB) ratio is 4.29.
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.