COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
70.45 USD
-0.36 (-0.51%)
70.48 USD
+0.03 (+0.04%)
KO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. While KO has a great profitability rating, there are some minor concerns on its financial health. KO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
KO had positive earnings in the past year.
KO had a positive operating cash flow in the past year.
In the past 5 years KO has always been profitable.
KO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.29%, KO belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Equity of KO (41.70%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 14.17%, KO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KO is in line with the industry average of 11.60%.
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
The Profit Margin of KO (27.34%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of KO has remained more or less at the same level.
KO's Operating Margin of 31.14% is amongst the best of the industry. KO outperforms 96.97% of its industry peers.
KO's Operating Margin has declined in the last couple of years.
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.
KO's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for KO remains at a similar level compared to 1 year ago.
KO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KO has a worse debt to assets ratio.
2.2 Solvency
KO has an Altman-Z score of 4.46. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KO (4.46) is better than 84.85% of its industry peers.
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 has a Debt to FCF ratio of 8.51. This is comparable 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 has a Debt to Equity ratio of 1.46. This is amonst the worse of the industry: KO underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.77
WACC8.01%
2.3 Liquidity
A Current Ratio of 1.21 indicates that KO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, KO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that KO may have some problems paying 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 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.32%.
Measured over the past 5 years, KO shows a small growth in Earnings Per Share. The EPS has been growing by 6.42% on average per year.
The Revenue has been growing slightly by 2.80% in the past year.
The Revenue has been growing slightly by 4.78% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.18% on average over the next years.
The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y6.78%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
EPS Next 5Y7.18%
Revenue Next Year4.47%
Revenue Next 2Y4.73%
Revenue Next 3Y4.56%
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
Based on the Price/Earnings ratio of 23.72, the valuation of KO can be described as rather expensive.
KO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KO to the average of the S&P500 Index (26.41), we can say KO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.24, the valuation of KO can be described as rather expensive.
KO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KO to the average of the S&P500 Index (35.40), we can say KO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KO indicates a slightly more expensive valuation: KO is more expensive than 60.61% of the companies listed in the same industry.
60.61% of the companies in the same industry are cheaper than KO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.41 | ||
| EV/EBITDA | 20.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KO does not grow enough to justify the current Price/Earnings ratio.
KO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.5
PEG (5Y)3.69
EPS Next 2Y7.32%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, KO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.06, KO pays a bit more dividend than its industry peers.
KO's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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
65.04% 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.
DP65.04%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
70.45
-0.36 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.62%
Inst Owner Change0.65%
Ins Owners0.57%
Ins Owner Change-1.05%
Market Cap303.05B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target79.67 (13.09%)
Short Float %0.97%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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)0.33%
PT rev (3m)0.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 21.24 | ||
| P/S | 6.36 | ||
| P/FCF | 54.41 | ||
| P/OCF | 39.86 | ||
| P/B | 9.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.67 |
EPS(TTM)2.97
EY4.22%
EPS(NY)3.32
Fwd EY4.71%
FCF(TTM)1.29
FCFY1.84%
OCF(TTM)1.77
OCFY2.51%
SpS11.08
BVpS7.26
TBVpS-0.22
PEG (NY)3.5
PEG (5Y)3.69
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 | 4.46 |
F-Score7
WACC8.01%
ROIC/WACC1.77
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 Y6.78%
EPS Next 2Y7.32%
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 Year4.47%
Revenue Next 2Y4.73%
Revenue Next 3Y4.56%
Revenue Next 5Y3%
EBIT growth 1Y40.28%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year16.47%
EBIT Next 3Y10.32%
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 23.72 and the Price/Book (PB) ratio is 9.7.
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.