COCA-COLA CO/THE (KO) Stock Fundamental Analysis
NYSE:KO • US1912161007
79.49 USD
-0.07 (-0.09%)
At close: Feb 18, 2026
79.49 USD
0 (0%)
After Hours: 2/18/2026, 4:55:56 PM
Taking everything into account, KO scores 6 out of 10 in our fundamental rating. KO was compared to 33 industry peers in the Beverages industry. KO has an excellent profitability rating, but there are some minor concerns on its financial health. KO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- Each year in the past 5 years KO has been profitable.
- In the past 5 years KO always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of KO (12.50%) is better than 87.88% of its industry peers.
- KO has a better Return On Equity (40.74%) than 96.97% of its industry peers.
- With an excellent Return On Invested Capital value of 13.42%, KO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- KO had an Average Return On Invested Capital over the past 3 years of 12.68%. This is in line with the industry average of 11.40%.
- The 3 year average ROIC (12.68%) for KO is below the current ROIC(13.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.5% | ||
| ROE | 40.74% | ||
| ROIC | 13.42% |
ROA(3y)11.35%
ROA(5y)10.94%
ROE(3y)41.61%
ROE(5y)41.38%
ROIC(3y)12.68%
ROIC(5y)12.29%
1.3 Margins
- KO has a better Profit Margin (27.34%) than 96.97% of its industry peers.
- KO's Profit Margin has improved in the last couple of years.
- KO's Operating Margin of 29.13% is amongst the best of the industry. KO outperforms 87.88% of its industry peers.
- KO's Operating Margin has been stable in the last couple of years.
- KO has a better Gross Margin (61.63%) than 93.94% 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 | 29.13% | ||
| PM (TTM) | 27.34% | ||
| GM | 61.63% |
OM growth 3Y6.21%
OM growth 5Y0.93%
PM growth 3Y7.21%
PM growth 5Y3.1%
GM growth 3Y1.96%
GM growth 5Y0.77%
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.
- Compared to 5 years ago, KO has about the same amount of shares outstanding.
- KO has a better debt/assets ratio than last year.
2.2 Solvency
- KO has an Altman-Z score of 4.91. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
- KO has a better Altman-Z score (4.91) than 84.85% of its industry peers.
- KO has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as KO would need 8.59 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 8.59, KO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- A Debt/Equity ratio of 1.36 is on the high side and indicates that KO has dependencies on debt financing.
- KO has a Debt to Equity ratio of 1.36. This is in the lower half of the industry: KO underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 4.91 |
ROIC/WACC1.65
WACC8.15%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that KO should not have too much problems paying its short term obligations.
- KO's Current ratio of 1.46 is in line compared to the rest of the industry. KO outperforms 57.58% of its industry peers.
- KO has a Quick Ratio of 1.25. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of KO (1.25) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.17% over the past year.
- The Earnings Per Share has been growing by 9.00% on average over the past years. This is quite good.
- KO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.87%.
- KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.75% yearly.
EPS 1Y (TTM)4.17%
EPS 3Y6.55%
EPS 5Y9%
EPS Q2Q%5.45%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y3.69%
Revenue growth 5Y7.75%
Sales Q2Q%3.62%
3.2 Future
- KO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.13% yearly.
- Based on estimates for the next years, KO will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y10.58%
EPS Next 2Y8.99%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue Next Year1.72%
Revenue Next 2Y1.82%
Revenue Next 3Y2.84%
Revenue Next 5Y3.87%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.50 indicates a quite expensive valuation of KO.
- 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 27.16, KO is valued at the same level.
- With a Price/Forward Earnings ratio of 23.96, KO is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as KO.
- KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 23.96 |
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.
- KO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. KO is more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.56 | ||
| EV/EBITDA | 24.3 |
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)2.51
PEG (5Y)2.94
EPS Next 2Y8.99%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
- KO has a Yearly Dividend Yield of 2.56%. 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 1.62.
- KO's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
- The dividend of KO has a limited annual growth rate of 4.44%.
- KO has paid a dividend for at least 10 years, which is 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)4.44%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 66.98% of the earnings are spent on dividend by KO. This is not a sustainable payout ratio.
- KO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.98%
EPS Next 2Y8.99%
EPS Next 3Y8.39%
79.49
-0.07 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners66.03%
Inst Owner Change0.27%
Ins Owners0.57%
Ins Owner Change-0.65%
Market Cap341.93B
Revenue(TTM)47.94B
Net Income(TTM)13.11B
Analysts82.29
Price Target80.56 (1.35%)
Short Float %0.87%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend2.04
Dividend Growth(5Y)4.44%
DP66.98%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.15%
Min EPS beat(2)-0.06%
Max EPS beat(2)2.35%
EPS beat(4)2
Avg EPS beat(4)0.77%
Min EPS beat(4)-0.7%
Max EPS beat(4)2.35%
EPS beat(8)6
Avg EPS beat(8)1.06%
EPS beat(12)9
Avg EPS beat(12)1.4%
EPS beat(16)12
Avg EPS beat(16)1.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.68%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-2.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-2.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)-0.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)0.58%
PT rev (3m)1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 23.96 | ||
| P/S | 7.13 | ||
| P/FCF | 64.56 | ||
| P/OCF | 46.16 | ||
| P/B | 10.63 | ||
| P/tB | 82.45 | ||
| EV/EBITDA | 24.3 |
EPS(TTM)3
EY3.77%
EPS(NY)3.32
Fwd EY4.17%
FCF(TTM)1.23
FCFY1.55%
OCF(TTM)1.72
OCFY2.17%
SpS11.14
BVpS7.48
TBVpS0.96
PEG (NY)2.51
PEG (5Y)2.94
Graham Number22.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.5% | ||
| ROE | 40.74% | ||
| ROCE | 16.72% | ||
| ROIC | 13.42% | ||
| ROICexc | 16.48% | ||
| ROICexgc | 27.67% | ||
| OM | 29.13% | ||
| PM (TTM) | 27.34% | ||
| GM | 61.63% | ||
| FCFM | 11.05% |
ROA(3y)11.35%
ROA(5y)10.94%
ROE(3y)41.61%
ROE(5y)41.38%
ROIC(3y)12.68%
ROIC(5y)12.29%
ROICexc(3y)15.52%
ROICexc(5y)14.87%
ROICexgc(3y)29.48%
ROICexgc(5y)29.51%
ROCE(3y)16.01%
ROCE(5y)15.55%
ROICexgc growth 3Y-0.8%
ROICexgc growth 5Y5.47%
ROICexc growth 3Y7.14%
ROICexc growth 5Y7.02%
OM growth 3Y6.21%
OM growth 5Y0.93%
PM growth 3Y7.21%
PM growth 5Y3.1%
GM growth 3Y1.96%
GM growth 5Y0.77%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 8.59 | ||
| Debt/EBITDA | 2.91 | ||
| Cap/Depr | 201.14% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.34% | ||
| Profit Quality | 40.41% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 4.91 |
F-Score7
WACC8.15%
ROIC/WACC1.65
Cap/Depr(3y)185.78%
Cap/Depr(5y)153.85%
Cap/Sales(3y)4.28%
Cap/Sales(5y)3.97%
Profit Quality(3y)58.66%
Profit Quality(5y)78.22%
High Growth Momentum
Growth
EPS 1Y (TTM)4.17%
EPS 3Y6.55%
EPS 5Y9%
EPS Q2Q%5.45%
EPS Next Y10.58%
EPS Next 2Y8.99%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y3.69%
Revenue growth 5Y7.75%
Sales Q2Q%3.62%
Revenue Next Year1.72%
Revenue Next 2Y1.82%
Revenue Next 3Y2.84%
Revenue Next 5Y3.87%
EBIT growth 1Y26.43%
EBIT growth 3Y10.13%
EBIT growth 5Y8.75%
EBIT Next Year15.48%
EBIT Next 3Y9.67%
EBIT Next 5Y8.03%
FCF growth 1Y11.71%
FCF growth 3Y-17.8%
FCF growth 5Y-9.38%
OCF growth 1Y8.86%
OCF growth 3Y-12.39%
OCF growth 5Y-5.53%
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 6 / 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 9 / 10.
Can you provide the PE and PB ratios for KO stock?
The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 26.5 and the Price/Book (PB) ratio is 10.63.
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 66.98%.