COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - NYSE:KO - US1912161007 - Common Stock
71.22 USD
+0.54 (+0.76%)
71.08 USD
-0.14 (-0.2%)
KO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. KO scores excellent on profitability, but there are concerns on its financial health. KO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year KO was profitable.
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
With an excellent Return On Assets value of 12.29%, KO belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
KO has a better Return On Equity (41.70%) than 100.00% of its industry peers.
KO has a Return On Invested Capital of 14.17%. This is amongst the best in 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 10.84%.
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 100.00% of the companies in the same industry.
KO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 31.14%, KO belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Operating Margin of KO has declined.
With an excellent Gross Margin value of 61.63%, KO belongs to the best of the industry, outperforming 96.97% 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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KO is 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.
Compared to 1 year ago, KO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.47 indicates that KO is not in any danger for bankruptcy at the moment.
KO's Altman-Z score of 4.47 is fine compared to the rest of the industry. KO outperforms 75.76% 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.
A Debt/Equity ratio of 1.46 is on the high side and indicates that KO has dependencies on debt financing.
KO's Debt to Equity ratio of 1.46 is on the low side compared to the rest of the industry. KO is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.75
WACC8.08%
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.
Looking at the Current ratio, with a value of 1.21, KO is in line with its industry, outperforming 45.45% of the companies in the same industry.
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 Quick ratio of 1.00. This is in the better half of the industry: KO outperforms 63.64% 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.
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
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 Y6.78%
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.
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
With a Price/Earnings ratio of 23.98, KO is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as KO.
KO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 21.47, which indicates a rather expensive current valuation of KO.
KO's Price/Forward Earnings is on the same level as the industry average.
KO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 21.47 |
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.
63.64% 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 | 55.03 | ||
| EV/EBITDA | 20.74 |
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)3.54
PEG (5Y)3.74
EPS Next 2Y7.32%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.05, KO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, KO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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 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
KO pays out 65.04% of its income as dividend. This is not a sustainable payout ratio.
KO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.04%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
71.22
+0.54 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.62%
Inst Owner Change0.66%
Ins Owners0.57%
Ins Owner Change-2.25%
Market Cap306.51B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target79.4 (11.49%)
Short Float %0.92%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)0.95%
PT rev (3m)0.15%
EPS NQ rev (1m)-5.2%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 21.47 | ||
| P/S | 6.43 | ||
| P/FCF | 55.03 | ||
| P/OCF | 40.31 | ||
| P/B | 9.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.74 |
EPS(TTM)2.97
EY4.17%
EPS(NY)3.32
Fwd EY4.66%
FCF(TTM)1.29
FCFY1.82%
OCF(TTM)1.77
OCFY2.48%
SpS11.07
BVpS7.26
TBVpS-0.22
PEG (NY)3.54
PEG (5Y)3.74
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 | 4.47 |
F-Score7
WACC8.08%
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 Y6.78%
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 23.98 and the Price/Book (PB) ratio is 9.81.
What is the financial health of COCA-COLA CO/THE (KO) stock?
The financial health rating of COCA-COLA CO/THE (KO) is 3 / 10.