COCA-COLA CO/THE (KO) Fundamental Analysis & Valuation

NYSE:KO • US1912161007

Current stock price

75.71 USD
+1.02 (+1.37%)
At close:
75.7 USD
-0.01 (-0.01%)
After Hours:

This KO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. KO Profitability Analysis

1.1 Basic Checks

  • In the past year KO was profitable.
  • In the past year KO had a positive cash flow from operations.
  • Each year in the past 5 years KO has been profitable.
  • KO had a positive operating cash flow in each of the past 5 years.
KO Yearly Net Income VS EBIT VS OCF VS FCFKO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 12.50%, KO belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
  • KO has a Return On Equity of 40.74%. This is amongst the best in the industry. KO outperforms 97.06% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 13.42%, KO belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for KO is in line with the industry average of 11.81%.
  • The last Return On Invested Capital (13.42%) for KO is above the 3 year average (12.68%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.5%
ROE 40.74%
ROIC 13.42%
ROA(3y)11.35%
ROA(5y)10.94%
ROE(3y)41.61%
ROE(5y)41.38%
ROIC(3y)12.68%
ROIC(5y)12.29%
KO Yearly ROA, ROE, ROICKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • KO has a Profit Margin of 27.34%. This is amongst the best in the industry. KO outperforms 97.06% of its industry peers.
  • In the last couple of years the Profit Margin of KO has grown nicely.
  • The Operating Margin of KO (29.13%) is better than 88.24% of its industry peers.
  • KO's Operating Margin has been stable in the last couple of years.
  • KO's Gross Margin of 61.63% is amongst the best of the industry. KO outperforms 94.12% of its industry peers.
  • KO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 29.13%
PM (TTM) 27.34%
GM 61.63%
OM growth 3Y6.21%
OM growth 5Y0.93%
PM growth 3Y7.21%
PM growth 5Y3.1%
GM growth 3Y1.96%
GM growth 5Y0.77%
KO Yearly Profit, Operating, Gross MarginsKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

2. KO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KO is still creating some value.
  • Compared to 1 year ago, KO has about the same amount of shares outstanding.
  • KO has about the same amout of shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, KO has an improved debt to assets ratio.
KO Yearly Shares OutstandingKO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
KO Yearly Total Debt VS Total AssetsKO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • KO has an Altman-Z score of 4.74. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
  • KO has a Altman-Z score of 4.74. This is amongst the best in the industry. KO outperforms 88.24% of its industry peers.
  • The Debt to FCF ratio of KO is 8.59, which is on the high side as it means it would take KO, 8.59 years of fcf income to pay off all of its debts.
  • KO has a Debt to FCF ratio (8.59) which is in line with its industry peers.
  • A Debt/Equity ratio of 1.36 is on the high side and indicates that KO has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.36, KO is doing worse than 73.53% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF 8.59
Altman-Z 4.74
ROIC/WACC1.58
WACC8.47%
KO Yearly LT Debt VS Equity VS FCFKO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • KO has a Current Ratio of 1.46. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Current ratio value of 1.46, KO is doing good in the industry, outperforming 61.76% of the companies in the same industry.
  • A Quick Ratio of 1.25 indicates that KO should not have too much problems paying its short term obligations.
  • The Quick ratio of KO (1.25) is better than 79.41% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.25
KO Yearly Current Assets VS Current LiabilitesKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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4

3. KO Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.17% over the past year.
  • KO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.00% yearly.
  • Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
  • The Revenue has been growing slightly by 7.75% on average over the past years.
EPS 1Y (TTM)4.17%
EPS 3Y6.55%
EPS 5Y9%
EPS Q2Q%5.45%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y3.69%
Revenue growth 5Y7.75%
Sales Q2Q%3.62%

3.2 Future

  • KO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
  • KO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y10.87%
EPS Next 2Y9.03%
EPS Next 3Y8.29%
EPS Next 5Y7.88%
Revenue Next Year1.67%
Revenue Next 2Y1.66%
Revenue Next 3Y2.81%
Revenue Next 5Y3.53%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
KO Yearly Revenue VS EstimatesKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 20B 40B 60B
KO Yearly EPS VS EstimatesKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1 2 3 4 5

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3

4. KO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.24, the valuation of KO can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of KO is on the same level as its industry peers.
  • KO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 22.76, the valuation of KO can be described as rather expensive.
  • KO's Price/Forward Earnings is on the same level as the industry average.
  • KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.24
Fwd PE 22.76
KO Price Earnings VS Forward Price EarningsKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KO is on the same level as its industry peers.
  • KO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 61.48
EV/EBITDA 22.9
KO Per share dataKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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 KO may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)2.8
EPS Next 2Y9.03%
EPS Next 3Y8.29%

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7

5. KO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.84%, KO has a reasonable but not impressive dividend return.
  • KO's Dividend Yield is a higher than the industry average which is at 1.85.
  • KO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.84%

5.2 History

  • The dividend of KO has a limited annual growth rate of 4.44%.
  • KO has paid a dividend for at least 10 years, which is a reliable track record.
  • KO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.44%
Div Incr Years34
Div Non Decr Years34
KO Yearly Dividends per shareKO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 66.98% of the earnings are spent on dividend by KO. This is not a sustainable payout ratio.
  • The dividend of KO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.98%
EPS Next 2Y9.03%
EPS Next 3Y8.29%
KO Yearly Income VS Free CF VS DividendKO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
KO Dividend Payout.KO Dividend Payout, showing the Payout Ratio.KO Dividend Payout.PayoutRetained Earnings

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KO Fundamentals: All Metrics, Ratios and Statistics

COCA-COLA CO/THE

NYSE:KO (3/27/2026, 8:04:00 PM)

After market: 75.7 -0.01 (-0.01%)

75.71

+1.02 (+1.37%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners66.65%
Inst Owner Change0.62%
Ins Owners0.59%
Ins Owner Change-0.16%
Market Cap325.61B
Revenue(TTM)47.94B
Net Income(TTM)13.11B
Analysts81.71
Price Target85.2 (12.53%)
Short Float %1.12%
Short Ratio2.3
Dividend
Industry RankSector Rank
Dividend Yield 2.84%
Yearly Dividend2.04
Dividend Growth(5Y)4.44%
DP66.98%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.15%
Min EPS beat(2)-0.06%
Max EPS beat(2)2.35%
EPS beat(4)2
Avg EPS beat(4)0.77%
Min EPS beat(4)-0.7%
Max EPS beat(4)2.35%
EPS beat(8)6
Avg EPS beat(8)1.06%
EPS beat(12)9
Avg EPS beat(12)1.4%
EPS beat(16)12
Avg EPS beat(16)1.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.68%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-2.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-2.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)-0.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)4.66%
PT rev (3m)5.26%
EPS NQ rev (1m)-2.84%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)-3.25%
Revenue NY rev (3m)-3.19%
Valuation
Industry RankSector Rank
PE 25.24
Fwd PE 22.76
P/S 6.79
P/FCF 61.48
P/OCF 43.95
P/B 10.12
P/tB 78.52
EV/EBITDA 22.9
EPS(TTM)3
EY3.96%
EPS(NY)3.33
Fwd EY4.39%
FCF(TTM)1.23
FCFY1.63%
OCF(TTM)1.72
OCFY2.28%
SpS11.15
BVpS7.48
TBVpS0.96
PEG (NY)2.32
PEG (5Y)2.8
Graham Number22.47
Profitability
Industry RankSector Rank
ROA 12.5%
ROE 40.74%
ROCE 16.72%
ROIC 13.42%
ROICexc 16.48%
ROICexgc 27.67%
OM 29.13%
PM (TTM) 27.34%
GM 61.63%
FCFM 11.05%
ROA(3y)11.35%
ROA(5y)10.94%
ROE(3y)41.61%
ROE(5y)41.38%
ROIC(3y)12.68%
ROIC(5y)12.29%
ROICexc(3y)15.52%
ROICexc(5y)14.87%
ROICexgc(3y)29.48%
ROICexgc(5y)29.51%
ROCE(3y)16.01%
ROCE(5y)15.55%
ROICexgc growth 3Y-0.8%
ROICexgc growth 5Y5.47%
ROICexc growth 3Y7.14%
ROICexc growth 5Y7.02%
OM growth 3Y6.21%
OM growth 5Y0.93%
PM growth 3Y7.21%
PM growth 5Y3.1%
GM growth 3Y1.96%
GM growth 5Y0.77%
F-Score7
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF 8.59
Debt/EBITDA 2.91
Cap/Depr 201.14%
Cap/Sales 4.41%
Interest Coverage 250
Cash Conversion 49.34%
Profit Quality 40.41%
Current Ratio 1.46
Quick Ratio 1.25
Altman-Z 4.74
F-Score7
WACC8.47%
ROIC/WACC1.58
Cap/Depr(3y)185.78%
Cap/Depr(5y)153.85%
Cap/Sales(3y)4.28%
Cap/Sales(5y)3.97%
Profit Quality(3y)58.66%
Profit Quality(5y)78.22%
High Growth Momentum
Growth
EPS 1Y (TTM)4.17%
EPS 3Y6.55%
EPS 5Y9%
EPS Q2Q%5.45%
EPS Next Y10.87%
EPS Next 2Y9.03%
EPS Next 3Y8.29%
EPS Next 5Y7.88%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y3.69%
Revenue growth 5Y7.75%
Sales Q2Q%3.62%
Revenue Next Year1.67%
Revenue Next 2Y1.66%
Revenue Next 3Y2.81%
Revenue Next 5Y3.53%
EBIT growth 1Y26.43%
EBIT growth 3Y10.13%
EBIT growth 5Y8.75%
EBIT Next Year14.55%
EBIT Next 3Y8.93%
EBIT Next 5Y7.82%
FCF growth 1Y11.71%
FCF growth 3Y-17.8%
FCF growth 5Y-9.38%
OCF growth 1Y8.86%
OCF growth 3Y-12.39%
OCF growth 5Y-5.53%

COCA-COLA CO/THE / KO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of COCA-COLA CO/THE (KO) stock?

ChartMill assigns a fundamental rating of 6 / 10 to KO.


What is the valuation status for KO stock?

ChartMill assigns a valuation rating of 3 / 10 to COCA-COLA CO/THE (KO). This can be considered as Overvalued.


What is the profitability of KO stock?

COCA-COLA CO/THE (KO) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for KO stock?

The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 25.24 and the Price/Book (PB) ratio is 10.12.


Can you provide the dividend sustainability for KO stock?

The dividend rating of COCA-COLA CO/THE (KO) is 6 / 10 and the dividend payout ratio is 66.98%.