COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
69.87 USD
-0.34 (-0.48%)
69.93 USD
+0.06 (+0.09%)
Taking everything into account, KO scores 5 out of 10 in our fundamental rating. KO was compared to 33 industry peers in the Beverages industry. While KO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KO does not seem to be growing, but still is valued expensively. KO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KO was profitable.
In the past year KO had a positive cash flow from operations.
KO had positive earnings in each of the past 5 years.
Each year in the past 5 years KO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.29%, KO belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
KO has a Return On Equity of 41.70%. This is amongst the best in the industry. KO outperforms 96.97% of its industry peers.
KO's Return On Invested Capital of 14.17% is amongst the best of the industry. KO outperforms 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KO is in line with the industry average of 11.47%.
The last Return On Invested Capital (14.17%) for KO is above the 3 year average (11.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.29% | ||
| ROE | 41.7% | ||
| ROIC | 14.17% |
ROA(3y)10.61%
ROA(5y)10.21%
ROE(3y)41.22%
ROE(5y)41.26%
ROIC(3y)11.98%
ROIC(5y)11.6%
1.3 Margins
KO's Profit Margin of 27.34% is amongst the best of the industry. KO outperforms 96.97% of its industry peers.
KO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 31.14%, KO belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Operating Margin of KO has declined.
Looking at the Gross Margin, with a value of 61.63%, KO belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Gross Margin of KO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.14% | ||
| PM (TTM) | 27.34% | ||
| GM | 61.63% |
OM growth 3Y-5.6%
OM growth 5Y-3.48%
PM growth 3Y-3.68%
PM growth 5Y-1.15%
GM growth 3Y0.44%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
KO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KO has more shares outstanding
Compared to 1 year ago, KO has a worse debt to assets ratio.
2.2 Solvency
KO has an Altman-Z score of 4.44. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.44, KO belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
KO has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as KO would need 8.51 years to pay back of all of its debts.
KO's Debt to FCF ratio of 8.51 is in line compared to the rest of the industry. KO outperforms 45.45% of its industry peers.
KO has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
KO's Debt to Equity ratio of 1.46 is on the low side compared to the rest of the industry. KO is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.44 |
ROIC/WACC1.75
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.21 indicates that KO should not have too much problems paying its short term obligations.
KO has a Current ratio of 1.21. This is comparable to the rest of the industry: KO outperforms 48.48% of its industry peers.
KO has a Quick Ratio of 1.21. This is a bad value and indicates that KO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.00, KO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.32% over the past year.
The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
KO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.80%.
KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.
EPS 1Y (TTM)5.32%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%6.49%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%3.87%
3.2 Future
KO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.18% yearly.
Based on estimates for the next years, KO will show a small growth in Revenue. The Revenue will grow by 3.00% on average per year.
EPS Next Y6.87%
EPS Next 2Y7.34%
EPS Next 3Y7.36%
EPS Next 5Y7.18%
Revenue Next Year4.49%
Revenue Next 2Y4.76%
Revenue Next 3Y4.58%
Revenue Next 5Y3%
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.
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 23.53, which indicates a rather expensive current valuation of KO.
The rest of the industry has a similar Price/Earnings ratio as KO.
The average S&P500 Price/Earnings ratio is at 26.50. KO is around the same levels.
A Price/Forward Earnings ratio of 21.06 indicates a rather expensive valuation of KO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KO is on the same level as its industry peers.
KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 21.06 |
4.2 Price Multiples
KO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KO is more expensive than 60.61% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.96 | ||
| EV/EBITDA | 20.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.42
PEG (5Y)3.66
EPS Next 2Y7.34%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
KO's Dividend Yield is a higher than the industry average which is at 1.77.
KO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of KO has a limited annual growth rate of 3.93%.
KO has paid a dividend for at least 10 years, which is a reliable track record.
KO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
KO pays out 65.04% of its income as dividend. This is not a sustainable payout ratio.
KO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.04%
EPS Next 2Y7.34%
EPS Next 3Y7.36%
69.87
-0.34 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.93%
Inst Owner Change0.68%
Ins Owners0.57%
Ins Owner Change-1.05%
Market Cap300.55B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target80.1 (14.64%)
Short Float %1.07%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend1.94
Dividend Growth(5Y)3.93%
DP65.04%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.91%
Min EPS beat(2)1.47%
Max EPS beat(2)2.35%
EPS beat(4)3
Avg EPS beat(4)1.66%
Min EPS beat(4)-0.7%
Max EPS beat(4)3.5%
EPS beat(8)6
Avg EPS beat(8)0.75%
EPS beat(12)9
Avg EPS beat(12)1.19%
EPS beat(16)13
Avg EPS beat(16)2.16%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-2.77%
Max Revenue beat(2)-2.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)3.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)0.87%
PT rev (3m)1.32%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 21.06 | ||
| P/S | 6.31 | ||
| P/FCF | 53.96 | ||
| P/OCF | 39.53 | ||
| P/B | 9.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.52 |
EPS(TTM)2.97
EY4.25%
EPS(NY)3.32
Fwd EY4.75%
FCF(TTM)1.29
FCFY1.85%
OCF(TTM)1.77
OCFY2.53%
SpS11.08
BVpS7.26
TBVpS-0.22
PEG (NY)3.42
PEG (5Y)3.66
Graham Number22.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.29% | ||
| ROE | 41.7% | ||
| ROCE | 17.76% | ||
| ROIC | 14.17% | ||
| ROICexc | 17.36% | ||
| ROICexgc | 32.1% | ||
| OM | 31.14% | ||
| PM (TTM) | 27.34% | ||
| GM | 61.63% | ||
| FCFM | 11.69% |
ROA(3y)10.61%
ROA(5y)10.21%
ROE(3y)41.22%
ROE(5y)41.26%
ROIC(3y)11.98%
ROIC(5y)11.6%
ROICexc(3y)14.47%
ROICexc(5y)13.91%
ROICexgc(3y)29.82%
ROICexgc(5y)28.22%
ROCE(3y)15.16%
ROCE(5y)14.68%
ROICexgc growth 3Y0.46%
ROICexgc growth 5Y2.21%
ROICexc growth 3Y2.32%
ROICexc growth 5Y0.14%
OM growth 3Y-5.6%
OM growth 5Y-3.48%
PM growth 3Y-3.68%
PM growth 5Y-1.15%
GM growth 3Y0.44%
GM growth 5Y0.1%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 186.51% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.73% | ||
| Profit Quality | 42.74% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 4.44 |
F-Score7
WACC8.1%
ROIC/WACC1.75
Cap/Depr(3y)157.99%
Cap/Depr(5y)128.95%
Cap/Sales(3y)3.96%
Cap/Sales(5y)3.8%
Profit Quality(3y)78.5%
Profit Quality(5y)92.52%
High Growth Momentum
Growth
EPS 1Y (TTM)5.32%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%6.49%
EPS Next Y6.87%
EPS Next 2Y7.34%
EPS Next 3Y7.36%
EPS Next 5Y7.18%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%3.87%
Revenue Next Year4.49%
Revenue Next 2Y4.76%
Revenue Next 3Y4.58%
Revenue Next 5Y3%
EBIT growth 1Y40.28%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year15.06%
EBIT Next 3Y9.76%
EBIT Next 5Y8.03%
FCF growth 1Y-45.23%
FCF growth 3Y-25.04%
FCF growth 5Y-10.85%
OCF growth 1Y-36%
OCF growth 3Y-18.62%
OCF growth 5Y-8.26%
COCA-COLA CO/THE / KO FAQ
What is the ChartMill fundamental rating of COCA-COLA CO/THE (KO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KO.
What is the valuation status of COCA-COLA CO/THE (KO) stock?
ChartMill assigns a valuation rating of 2 / 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 8 / 10.
What are the PE and PB ratios of COCA-COLA CO/THE (KO) stock?
The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 23.53 and the Price/Book (PB) ratio is 9.62.
What is the financial health of COCA-COLA CO/THE (KO) stock?
The financial health rating of COCA-COLA CO/THE (KO) is 4 / 10.