COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
69.12 USD
-0.79 (-1.13%)
69.12 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KO. KO was compared to 32 industry peers in the Beverages industry. KO has an excellent profitability rating, but there are some minor concerns on its financial health. KO is valued expensive and it does not seem to be growing.
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.
In the past 5 years KO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.29%, KO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
KO's Return On Equity of 41.70% is amongst the best of the industry. KO outperforms 96.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.17%, KO belongs to the top of the industry, outperforming 81.25% 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 11.65%.
The 3 year average ROIC (11.98%) for KO is below the current ROIC(14.17%), indicating increased profibility in the last year.
| 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 96.88% 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 has a better Operating Margin (31.14%) than 96.88% of its industry peers.
KO's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 61.63%, KO belongs to the best of the industry, outperforming 96.88% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KO is still creating some value.
KO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for KO has been increased compared to 5 years ago.
KO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.44 indicates that KO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.44, KO belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
The Debt to FCF ratio of KO is 8.51, which is on the high side as it means it would take KO, 8.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KO (8.51) is comparable to the rest of the industry.
KO has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.46, KO is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| 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 (1.21) which is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that KO may have some problems paying its short term obligations.
KO has a better Quick ratio (1.00) than 65.63% of its industry peers.
| 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.
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.
Measured over the past years, KO shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
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.
KO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 23.27, KO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of KO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.60, KO is valued at the same level.
KO is valuated rather expensively with a Price/Forward Earnings ratio of 20.83.
The rest of the industry has a similar Price/Forward Earnings ratio as KO.
KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 20.83 |
4.2 Price Multiples
KO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.38 | ||
| EV/EBITDA | 20.53 |
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)3.39
PEG (5Y)3.63
EPS Next 2Y7.34%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.91%.
KO's Dividend Yield is a higher than the industry average which is at 1.69.
Compared to an average S&P500 Dividend Yield of 2.00, KO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 2Y7.34%
EPS Next 3Y7.36%
69.12
-0.79 (-1.13%)
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 Cap297.33B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target80.1 (15.89%)
Short Float %0.97%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend1.94
Dividend Growth(5Y)3.93%
DP65.04%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0.54%
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 | 23.27 | ||
| Fwd PE | 20.83 | ||
| P/S | 6.24 | ||
| P/FCF | 53.38 | ||
| P/OCF | 39.11 | ||
| P/B | 9.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.53 |
EPS(TTM)2.97
EY4.3%
EPS(NY)3.32
Fwd EY4.8%
FCF(TTM)1.29
FCFY1.87%
OCF(TTM)1.77
OCFY2.56%
SpS11.08
BVpS7.26
TBVpS-0.22
PEG (NY)3.39
PEG (5Y)3.63
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 3Y9.79%
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 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 8 / 10.
Can you provide the PE and PB ratios for KO stock?
The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 23.27 and the Price/Book (PB) ratio is 9.52.
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 65.04%.