COCA-COLA EUROPACIFIC PARTNE (CCEP) Stock Fundamental Analysis
NASDAQ:CCEP - Nasdaq - GB00BDCPN049 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CCEP. CCEP was compared to 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.
In the past 5 years CCEP has always 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 (4.56%) which is in line with its industry peers.
CCEP's Return On Equity of 16.70% is fine compared to the rest of the industry. CCEP outperforms 62.50% of its industry peers.
CCEP has a Return On Invested Capital (7.00%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CCEP is below the industry average of 11.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.7% | ||
| ROIC | 7% |
ROA(3y)5.14%
ROA(5y)4.27%
ROE(3y)19.29%
ROE(5y)16.02%
ROIC(3y)7.84%
ROIC(5y)6.6%
1.3 Margins
CCEP's Profit Margin of 6.94% is in line compared to the rest of the industry. CCEP outperforms 56.25% of its industry peers.
CCEP's Profit Margin has declined in the last couple of years.
CCEP has a Operating Margin (10.46%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CCEP has declined.
Looking at the Gross Margin, with a value of 35.31%, CCEP is doing worse than 81.25% 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 | 10.46% | ||
| PM (TTM) | 6.94% | ||
| GM | 35.31% |
OM growth 3Y1.73%
OM growth 5Y-1.57%
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.
Compared to 5 years ago, CCEP has more shares outstanding
CCEP has a better debt/assets ratio than last year.
2.2 Solvency
CCEP has an Altman-Z score of 2.19. This is not the best score and indicates that CCEP is in the grey zone with still only limited risk for bankruptcy at the moment.
CCEP has a Altman-Z score of 2.19. This is comparable to the rest of the industry: CCEP outperforms 43.75% of its industry peers.
CCEP has a debt to FCF ratio of 5.34. This is a neutral value as CCEP would need 5.34 years to pay back of all of its debts.
The Debt to FCF ratio of CCEP (5.34) is better than 75.00% of its industry peers.
CCEP has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
CCEP has a Debt to Equity ratio of 1.17. This is in the lower half of the industry: CCEP underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.91
WACC7.68%
2.3 Liquidity
CCEP has a Current Ratio of 0.81. 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 Current ratio of 0.81. This is in the lower half of the industry: CCEP underperforms 78.13% of its industry peers.
CCEP has a Quick Ratio of 0.81. 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's Quick ratio of 0.62 is on the low side compared to the rest of the industry. CCEP is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
CCEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.31%.
Measured over the past 5 years, CCEP shows a small growth in Earnings Per Share. The EPS has been growing by 5.80% on average per year.
The Revenue has grown by 11.67% in the past year. This is quite good.
CCEP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.21% yearly.
EPS 1Y (TTM)-15.31%
EPS 3Y12.68%
EPS 5Y5.8%
EPS Q2Q%-24.06%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y14.09%
Revenue growth 5Y11.21%
Sales Q2Q%13.78%
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 9.28% yearly.
Based on estimates for the next years, CCEP will show a small growth in Revenue. The Revenue will grow by 3.08% on average per year.
EPS Next Y5.49%
EPS Next 2Y7.39%
EPS Next 3Y7.9%
EPS Next 5Y9.28%
Revenue Next Year3.24%
Revenue Next 2Y3.41%
Revenue Next 3Y3.58%
Revenue Next 5Y3.08%
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
A Price/Earnings ratio of 26.53 indicates a quite expensive valuation of CCEP.
CCEP's Price/Earnings ratio is in line with the industry average.
CCEP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
CCEP is valuated rather expensively with a Price/Forward Earnings ratio of 19.30.
CCEP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, CCEP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
CCEP's Enterprise Value to EBITDA is on the same level as the industry average.
78.13% of the companies in the same industry are more expensive than CCEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.7 | ||
| EV/EBITDA | 15.3 |
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)4.83
PEG (5Y)4.57
EPS Next 2Y7.39%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
CCEP has a Yearly Dividend Yield of 2.32%.
CCEP's Dividend Yield is a higher than the industry average which is at 3.03.
CCEP's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
On average, the dividend of CCEP grows each year by 9.91%, which is quite nice.
CCEP has paid a dividend for at least 10 years, which is a reliable track record.
CCEP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.91%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
64.17% of the earnings are spent on dividend by CCEP. 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.
DP64.17%
EPS Next 2Y7.39%
EPS Next 3Y7.9%
95.52
+0.07 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners37.53%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap43.97B
Analysts77.27
Price Target96.23 (0.74%)
Short Float %1.97%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend2.33
Dividend Growth(5Y)9.91%
DP64.17%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.18%
PT rev (3m)3.77%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 19.3 | ||
| P/S | 1.84 | ||
| P/FCF | 17.7 | ||
| P/OCF | 12.27 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.3 |
EPS(TTM)3.6
EY3.77%
EPS(NY)4.95
Fwd EY5.18%
FCF(TTM)5.4
FCFY5.65%
OCF(TTM)7.79
OCFY8.15%
SpS51.99
BVpS21.59
TBVpS-22.76
PEG (NY)4.83
PEG (5Y)4.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.7% | ||
| ROCE | 9.32% | ||
| ROIC | 7% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 42.27% | ||
| OM | 10.46% | ||
| PM (TTM) | 6.94% | ||
| GM | 35.31% | ||
| FCFM | 10.38% |
ROA(3y)5.14%
ROA(5y)4.27%
ROE(3y)19.29%
ROE(5y)16.02%
ROIC(3y)7.84%
ROIC(5y)6.6%
ROICexc(3y)8.71%
ROICexc(5y)7.37%
ROICexgc(3y)64.53%
ROICexgc(5y)51.3%
ROCE(3y)10.42%
ROCE(5y)8.8%
ROICexcg growth 3Y8.99%
ROICexcg growth 5Y7.35%
ROICexc growth 3Y14.53%
ROICexc growth 5Y1.38%
OM growth 3Y1.73%
OM growth 5Y-1.57%
PM growth 3Y-0.93%
PM growth 5Y-5.22%
GM growth 3Y-1.58%
GM growth 5Y-1.5%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 5.34 | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 100.64% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 8.59 | ||
| Cash Conversion | 99.67% | ||
| Profit Quality | 149.65% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.19 |
F-Score5
WACC7.68%
ROIC/WACC0.91
Cap/Depr(3y)92.36%
Cap/Depr(5y)78.04%
Cap/Sales(3y)4.17%
Cap/Sales(5y)3.92%
Profit Quality(3y)141.19%
Profit Quality(5y)162.2%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.31%
EPS 3Y12.68%
EPS 5Y5.8%
EPS Q2Q%-24.06%
EPS Next Y5.49%
EPS Next 2Y7.39%
EPS Next 3Y7.9%
EPS Next 5Y9.28%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y14.09%
Revenue growth 5Y11.21%
Sales Q2Q%13.78%
Revenue Next Year3.24%
Revenue Next 2Y3.41%
Revenue Next 3Y3.58%
Revenue Next 5Y3.08%
EBIT growth 1Y-4.98%
EBIT growth 3Y16.06%
EBIT growth 5Y9.46%
EBIT Next Year43.62%
EBIT Next 3Y17.56%
EBIT Next 5Y12.75%
FCF growth 1Y6.42%
FCF growth 3Y8.29%
FCF growth 5Y10.26%
OCF growth 1Y9.09%
OCF growth 3Y13.08%
OCF growth 5Y9.96%