COCA-COLA EUROPACIFIC PARTNE (CCEP) Stock Fundamental Analysis
NASDAQ:CCEP - Nasdaq - GB00BDCPN049 - Common Stock - Currency: USD
Overall CCEP gets a fundamental rating of 3 out of 10. We evaluated CCEP against 32 industry peers in the Beverages industry. Both the profitability and financial health of CCEP have multiple concerns. 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.
In the past year CCEP had a positive cash flow from operations.
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
The Return On Assets of CCEP (4.56%) is comparable to the rest of the industry.
With a decent Return On Equity value of 16.70%, CCEP is doing good in the industry, outperforming 65.52% of the companies in the same industry.
With a Return On Invested Capital value of 6.98%, CCEP perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.7% | ||
| ROIC | 6.98% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CCEP has a Profit Margin of 6.94%. This is comparable to the rest of the industry: CCEP outperforms 44.83% of its industry peers.
In the last couple of years the Profit Margin of CCEP has declined.
Looking at the Operating Margin, with a value of 10.43%, CCEP is doing worse than 65.52% of the companies in the same industry.
In the last couple of years the Operating Margin of CCEP has declined.
CCEP has a Gross Margin of 35.28%. This is amonst the worse of the industry: CCEP underperforms 86.21% of its industry peers.
In the last couple of years the Gross Margin of CCEP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 6.94% | ||
| GM | 35.28% |
OM growth 3Y-3.06%
OM growth 5Y-4.38%
PM growth 3Y-0.93%
PM growth 5Y-5.22%
GM growth 3Y-1.9%
GM growth 5Y-1.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CCEP is destroying value.
CCEP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CCEP has an Altman-Z score of 2.21. 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.
The Altman-Z score of CCEP (2.21) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 5.34, CCEP is doing good in the industry, outperforming 65.52% of the companies in the same industry.
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 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.82
WACC8.52%
2.3 Liquidity
A Current Ratio of 0.81 indicates that CCEP may have some problems paying its short term obligations.
The Current ratio of CCEP (0.81) is worse than 79.31% of its industry peers.
A Quick Ratio of 0.62 indicates that CCEP may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, CCEP is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for CCEP have decreased strongly by -15.31% in the last year.
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.
Looking at the last year, CCEP shows a quite strong growth in Revenue. The Revenue has grown by 11.67% in the last year.
The Revenue has been growing by 11.21% on average over the past years. This is quite good.
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 10.10% yearly.
Based on estimates for the next years, CCEP will show a small growth in Revenue. The Revenue will grow by 1.19% on average per year.
EPS Next Y7.08%
EPS Next 2Y8.16%
EPS Next 3Y8.5%
EPS Next 5Y10.1%
Revenue Next Year4.53%
Revenue Next 2Y4.2%
Revenue Next 3Y4.17%
Revenue Next 5Y1.19%
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
The Price/Earnings ratio is 26.99, which means the current valuation is very expensive for CCEP.
Compared to the rest of the industry, the Price/Earnings ratio of CCEP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CCEP to the average of the S&P500 Index (29.75), we can say CCEP is valued inline with the index average.
The Price/Forward Earnings ratio is 19.36, which indicates a rather expensive current valuation of CCEP.
The rest of the industry has a similar Price/Forward Earnings ratio as CCEP.
CCEP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CCEP indicates a slightly more expensive valuation: CCEP is more expensive than 62.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CCEP indicates a rather cheap valuation: CCEP is cheaper than 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.04 | ||
| EV/EBITDA | 15.58 |
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)3.81
PEG (5Y)4.65
EPS Next 2Y8.16%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
CCEP has a Yearly Dividend Yield of 2.47%.
Compared to an average industry Dividend Yield of 3.17, CCEP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, CCEP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
The dividend of CCEP is nicely growing with an annual growth rate of 11.43%!
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)11.43%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
CCEP pays out 64.17% of its income as dividend. This is not a sustainable payout ratio.
CCEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.17%
EPS Next 2Y8.16%
EPS Next 3Y8.5%
86.92
+0.66 (+0.77%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners35.56%
Inst Owner Change3.67%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap40.07B
Analysts79.13
Price Target89.21 (2.63%)
Short Float %1.83%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend1.91
Dividend Growth(5Y)11.43%
DP64.17%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)3.54%
PT rev (3m)2.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 19.36 | ||
| P/S | 1.87 | ||
| P/FCF | 18.04 | ||
| P/OCF | 12.51 | ||
| P/B | 4.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.58 |
EPS(TTM)3.22
EY3.7%
EPS(NY)4.49
Fwd EY5.17%
FCF(TTM)4.82
FCFY5.54%
OCF(TTM)6.95
OCFY8%
SpS46.4
BVpS19.27
TBVpS-20.31
PEG (NY)3.81
PEG (5Y)4.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.7% | ||
| ROCE | 9.29% | ||
| ROIC | 6.98% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 42.15% | ||
| OM | 10.43% | ||
| PM (TTM) | 6.94% | ||
| GM | 35.28% | ||
| FCFM | 10.38% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.06%
OM growth 5Y-4.38%
PM growth 3Y-0.93%
PM growth 5Y-5.22%
GM growth 3Y-1.9%
GM growth 5Y-1.69%
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 | 8.56 | ||
| Cash Conversion | 99.87% | ||
| Profit Quality | 149.65% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.21 |
F-Score5
WACC8.52%
ROIC/WACC0.82
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 Y7.08%
EPS Next 2Y8.16%
EPS Next 3Y8.5%
EPS Next 5Y10.1%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y14.09%
Revenue growth 5Y11.21%
Sales Q2Q%13.78%
Revenue Next Year4.53%
Revenue Next 2Y4.2%
Revenue Next 3Y4.17%
Revenue Next 5Y1.19%
EBIT growth 1Y-5.24%
EBIT growth 3Y10.6%
EBIT growth 5Y6.34%
EBIT Next Year54.11%
EBIT Next 3Y19.04%
EBIT Next 5Y12.31%
FCF growth 1Y6.42%
FCF growth 3Y8.29%
FCF growth 5Y10.26%
OCF growth 1Y9.09%
OCF growth 3Y13.08%
OCF growth 5Y9.96%