COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
70.51 USD
+1.14 (+1.64%)
70.39 USD
-0.12 (-0.17%)
KO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. KO has an excellent profitability rating, but 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
KO had positive earnings in the past year.
KO had a positive operating cash flow in the past year.
KO had positive earnings in each of the past 5 years.
KO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KO has a better Return On Assets (12.29%) than 87.88% of its industry peers.
With an excellent Return On Equity value of 41.70%, KO belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
KO's Return On Invested Capital of 14.17% is amongst the best of the industry. KO outperforms 81.82% of its industry peers.
KO had an Average Return On Invested Capital over the past 3 years of 11.98%. This is in line with the industry average of 11.47%.
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
Looking at the Profit Margin, with a value of 27.34%, 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 Profit Margin of KO has remained more or less at the same level.
The Operating Margin of KO (31.14%) is better than 96.97% of its industry peers.
In the last couple of years the Operating Margin of KO has declined.
KO has a Gross Margin of 61.63%. This is amongst the best in the industry. KO outperforms 96.97% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KO is still 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.
With an excellent Altman-Z score value of 4.46, KO belongs to the best of the industry, outperforming 84.85% 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.
With a Debt to FCF ratio value of 8.51, KO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
KO has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
KO has a worse Debt to Equity ratio (1.46) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.75
WACC8.11%
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.
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 66.67% 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.
KO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.
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
Based on estimates for the next years, KO will show a small growth in Earnings Per Share. The EPS will grow by 7.18% on average per year.
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
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 23.74, which indicates a rather expensive current valuation of KO.
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 (27.19), we can say KO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.25, the valuation of KO can be described as rather expensive.
KO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of KO to the average of the S&P500 Index (23.92), we can say KO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 21.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KO is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as KO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.45 | ||
| EV/EBITDA | 20.69 |
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)3.46
PEG (5Y)3.7
EPS Next 2Y7.34%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.77, KO pays a bit more dividend than its industry peers.
KO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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%
70.51
+1.14 (+1.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.03%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change-1.05%
Market Cap303.31B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target80.1 (13.6%)
Short Float %0.97%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)1.83%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 21.25 | ||
| P/S | 6.36 | ||
| P/FCF | 54.45 | ||
| P/OCF | 39.89 | ||
| P/B | 9.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.69 |
EPS(TTM)2.97
EY4.21%
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)3.46
PEG (5Y)3.7
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
WACC8.11%
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 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.
Can you provide the PE and PB ratios for KO stock?
The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 23.74 and the Price/Book (PB) ratio is 9.71.
Can you provide the dividend sustainability for KO stock?
The dividend rating of COCA-COLA CO/THE (KO) is 7 / 10 and the dividend payout ratio is 65.04%.