COCA-COLA CO/THE (KO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:KO • US1912161007

74.81 USD
+1.38 (+1.88%)
At close: Jan 30, 2026
74.72 USD
-0.09 (-0.12%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

5

Overall KO gets a fundamental rating of 5 out of 10. We evaluated KO against 32 industry peers in the Beverages industry. KO scores excellent on profitability, but there are some minor concerns on its financial health. KO is valued expensive and it does not seem to be growing. Finally KO also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

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.
  • Each year in the past 5 years KO had a positive operating cash flow.
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 2B 4B 6B 8B 10B

1.2 Ratios

  • The Return On Assets of KO (12.29%) is better than 87.50% of its industry peers.
  • The Return On Equity of KO (41.70%) is better than 96.88% of its industry peers.
  • KO's Return On Invested Capital of 14.17% is amongst the best of the industry. KO outperforms 81.25% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for KO is in line with the industry average of 11.62%.
  • The 3 year average ROIC (11.98%) for KO is below the current ROIC(14.17%), indicating increased profibility in the last year.
Industry RankSector 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%
KO Yearly ROA, ROE, ROICKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • KO has a better Profit Margin (27.34%) than 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.
  • With an excellent Operating Margin value of 31.14%, KO belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
  • 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 96.88% 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 RankSector 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%
KO Yearly Profit, Operating, Gross MarginsKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KO is creating some value.
  • Compared to 1 year ago, KO has about the same amount of shares outstanding.
  • KO has more shares outstanding than it did 5 years ago.
  • KO has a worse debt/assets ratio than last year.
KO Yearly Shares OutstandingKO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 20B 40B 60B 80B 100B

2.2 Solvency

  • KO has an Altman-Z score of 4.61. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of KO (4.61) is better than 84.38% 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 46.88% 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.
  • 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 RankSector Rank
Debt/Equity 1.46
Debt/FCF 8.51
Altman-Z 4.61
ROIC/WACC1.72
WACC8.22%
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 10B 20B 30B 40B

2.3 Liquidity

  • KO has a Current Ratio of 1.21. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
  • KO has a Current ratio of 1.21. This is comparable to the rest of the industry: KO outperforms 43.75% 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.
  • KO has a better Quick ratio (1.00) than 65.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 1
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 10B 20B 30B

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3

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.
  • Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 2.80% in the last year.
  • 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

  • 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.
  • The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y6.91%
EPS Next 2Y7.31%
EPS Next 3Y7.38%
EPS Next 5Y7.18%
Revenue Next Year4.47%
Revenue Next 2Y4.79%
Revenue Next 3Y4.61%
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.
  • 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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2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.19, which means the current valuation is very expensive for KO.
  • The rest of the industry has a similar Price/Earnings ratio as KO.
  • The average S&P500 Price/Earnings ratio is at 28.32. KO is around the same levels.
  • KO is valuated rather expensively with a Price/Forward Earnings ratio of 22.56.
  • The rest of the industry has a similar Price/Forward Earnings ratio as KO.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. KO is around the same levels.
Industry RankSector Rank
PE 25.19
Fwd PE 22.56
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

  • 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 indicates a slightly more expensive valuation: KO is more expensive than 62.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 57.77
EV/EBITDA 21.85
KO Per share dataKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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)3.64
PEG (5Y)3.92
EPS Next 2Y7.31%
EPS Next 3Y7.38%

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7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.78%, KO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.68, KO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.83, KO pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.78%

5.2 History

  • The dividend of KO has a limited annual growth rate of 3.93%.
  • KO has been paying a dividend for at least 10 years, so it has 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)3.93%
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 0.5 1 1.5 2

5.3 Sustainability

  • KO pays out 65.04% of its income as dividend. 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 2Y7.31%
EPS Next 3Y7.38%
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 2B 4B 6B 8B 10B
KO Dividend Payout.KO Dividend Payout, showing the Payout Ratio.KO Dividend Payout.PayoutRetained Earnings

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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 25.19 and the Price/Book (PB) ratio is 10.3.


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%.