COCA-COLA CO/THE (KO)
US1912161007 - Common Stock
Taking everything into account, KO scores 5 out of 10 in our fundamental rating. KO was compared to 33 industry peers in the Beverages industry. While KO has a great profitability rating, there are quite some 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
In the past year KO was profitable.
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.
1.2 Ratios
With a decent Return On Assets value of 9.80%, KO is doing good in the industry, outperforming 75.76% of the companies in the same industry.
Looking at the Return On Equity, with a value of 39.25%, KO belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.08%, KO is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
KO had an Average Return On Invested Capital over the past 3 years of 12.96%. This is in line with the industry average of 12.99%.
The 3 year average ROIC (12.96%) for KO is below the current ROIC(14.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.8% | ||
| ROE | 39.25% | ||
| ROIC | 14.08% |
ROA(3y)10.54%
ROA(5y)10.16%
ROE(3y)41.12%
ROE(5y)42.1%
ROIC(3y)12.96%
ROIC(5y)12.39%
1.3 Margins
KO's Profit Margin of 22.45% is amongst the best of the industry. KO outperforms 93.94% of its industry peers.
In the last couple of years the Profit Margin of KO has grown nicely.
Looking at the Operating Margin, with a value of 29.50%, KO belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
KO's Operating Margin has been stable in the last couple of years.
KO's Gross Margin of 60.43% is amongst the best of 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 | 29.5% | ||
| PM (TTM) | 22.45% | ||
| GM | 60.43% |
OM growth 3Y-0.91%
OM growth 5Y-0.63%
PM growth 3Y-0.07%
PM growth 5Y4.54%
GM growth 3Y0.12%
GM growth 5Y-0.78%
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.
Compared to 1 year ago, KO has less shares outstanding
KO has more shares outstanding than it did 5 years ago.
KO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.91 indicates that KO is not in any danger for bankruptcy at the moment.
The Altman-Z score of KO (3.91) is better than 66.67% of its industry peers.
KO has a debt to FCF ratio of 13.56. This is a negative value and a sign of low solvency as KO would need 13.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.56, KO is doing worse than 60.61% of the companies in the same industry.
A Debt/Equity ratio of 1.70 is on the high side and indicates that KO has dependencies on debt financing.
KO's Debt to Equity ratio of 1.70 is on the low side compared to the rest of the industry. KO is outperformed by 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 13.56 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.68
WACC8.38%
2.3 Liquidity
KO has a Current Ratio of 1.06. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, KO is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
KO has a Quick Ratio of 1.06. This is a bad value and indicates that KO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.90, KO is in line with its industry, outperforming 51.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.42%.
Measured over the past 5 years, KO shows a small growth in Earnings Per Share. The EPS has been growing by 5.18% on average per year.
KO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.97%.
KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)6.42%
EPS 3Y11.32%
EPS 5Y5.18%
EPS Q2Q%4.05%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y11.49%
Revenue growth 5Y5.93%
Sales Q2Q%0.32%
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 6.79% on average per year.
KO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y9.26%
EPS Next 2Y6.74%
EPS Next 3Y6.91%
EPS Next 5Y6.79%
Revenue Next Year1.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.63%
Revenue Next 5Y3.96%
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 accelerating.
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
Based on the Price/Earnings ratio of 22.18, the valuation of KO can be described as rather expensive.
KO's Price/Earnings ratio is in line with the industry average.
KO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.41, which indicates a rather expensive current valuation of KO.
Based on the Price/Forward Earnings ratio, KO is valued a bit cheaper than 60.61% of the companies in the same industry.
KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.18 | ||
| Fwd PE | 20.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KO is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as KO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.97 | ||
| EV/EBITDA | 19.71 |
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.
The excellent profitability rating of KO may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)4.28
EPS Next 2Y6.74%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 3.04%.
Compared to an average industry Dividend Yield of 2.95, KO pays a bit more dividend than its industry peers.
KO's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of KO has a limited annual growth rate of 3.40%.
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)3.4%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
78.28% 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.
DP78.28%
EPS Next 2Y6.74%
EPS Next 3Y6.91%
COCA-COLA CO/THE
NYSE:KO (12/20/2024, 8:21:25 PM)
After market: 62.57 +0.02 (+0.03%)62.55
+0.1 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners73.34%
Inst Owner Change1.78%
Ins Owners0.47%
Ins Owner Change-0.3%
Market Cap269.45B
Analysts77.65
Price Target75.85 (21.26%)
Short Float %0.73%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Dividend Growth(5Y)3.4%
DP78.28%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.83%
Min EPS beat(2)0.43%
Max EPS beat(2)1.23%
EPS beat(4)3
Avg EPS beat(4)-0.15%
Min EPS beat(4)-2.53%
Max EPS beat(4)1.23%
EPS beat(8)6
Avg EPS beat(8)0.96%
EPS beat(12)10
Avg EPS beat(12)2.32%
EPS beat(16)14
Avg EPS beat(16)4.34%
Revenue beat(2)2
Avg Revenue beat(2)0.83%
Min Revenue beat(2)0.03%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)1.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)7
Avg Revenue beat(12)0.79%
Revenue beat(16)9
Avg Revenue beat(16)0.83%
PT rev (1m)-0.29%
PT rev (3m)6.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.18 | ||
| Fwd PE | 20.41 | ||
| P/S | 5.81 | ||
| P/FCF | 78.97 | ||
| P/OCF | 48.78 | ||
| P/B | 10.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.71 |
EPS(TTM)2.82
EY4.51%
EPS(NY)3.06
Fwd EY4.9%
FCF(TTM)0.79
FCFY1.27%
OCF(TTM)1.28
OCFY2.05%
SpS10.76
BVpS6.16
TBVpS-1.45
PEG (NY)2.4
PEG (5Y)4.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.8% | ||
| ROE | 39.25% | ||
| ROCE | 17.6% | ||
| ROIC | 14.08% | ||
| ROICexc | 18.23% | ||
| ROICexgc | 38.81% | ||
| OM | 29.5% | ||
| PM (TTM) | 22.45% | ||
| GM | 60.43% | ||
| FCFM | 7.36% |
ROA(3y)10.54%
ROA(5y)10.16%
ROE(3y)41.12%
ROE(5y)42.1%
ROIC(3y)12.96%
ROIC(5y)12.39%
ROICexc(3y)15.5%
ROICexc(5y)14.74%
ROICexgc(3y)32.49%
ROICexgc(5y)29.37%
ROCE(3y)16.49%
ROCE(5y)16.13%
ROICexcg growth 3Y14.51%
ROICexcg growth 5Y4.43%
ROICexc growth 3Y9.87%
ROICexc growth 5Y0.72%
OM growth 3Y-0.91%
OM growth 5Y-0.63%
PM growth 3Y-0.07%
PM growth 5Y4.54%
GM growth 3Y0.12%
GM growth 5Y-0.78%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 13.56 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 197.38% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.46% | ||
| Profit Quality | 32.78% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.91 |
F-Score4
WACC8.38%
ROIC/WACC1.68
Cap/Depr(3y)125.37%
Cap/Depr(5y)120.64%
Cap/Sales(3y)3.68%
Cap/Sales(5y)4.02%
Profit Quality(3y)102.04%
Profit Quality(5y)102.47%
High Growth Momentum
Growth
EPS 1Y (TTM)6.42%
EPS 3Y11.32%
EPS 5Y5.18%
EPS Q2Q%4.05%
EPS Next Y9.26%
EPS Next 2Y6.74%
EPS Next 3Y6.91%
EPS Next 5Y6.79%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y11.49%
Revenue growth 5Y5.93%
Sales Q2Q%0.32%
Revenue Next Year1.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.63%
Revenue Next 5Y3.96%
EBIT growth 1Y5.05%
EBIT growth 3Y10.48%
EBIT growth 5Y5.26%
EBIT Next Year16.52%
EBIT Next 3Y10.14%
EBIT Next 5Y8.82%
FCF growth 1Y-66.04%
FCF growth 3Y3.99%
FCF growth 5Y9.9%
OCF growth 1Y-51.81%
OCF growth 3Y5.62%
OCF growth 5Y8.75%