COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
73.12 USD
+0.24 (+0.33%)
73.13 USD
+0.01 (+0.01%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
KO had positive earnings in the past year.
In the past year KO had a positive cash flow from operations.
KO had positive earnings in each of the past 5 years.
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's Return On Equity of 41.70% is amongst the best of the industry. KO outperforms 100.00% of its industry peers.
The Return On Invested Capital of KO (14.17%) is better than 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 11.60%.
The last Return On Invested Capital (14.17%) for KO is above the 3 year average (11.98%), which is a sign of increasing profitability.
| 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
KO's Profit Margin of 27.34% is amongst the best of the industry. KO outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of KO has remained more or less at the same level.
KO's Operating Margin of 31.14% is amongst the best of the industry. KO outperforms 96.97% of its industry peers.
In the last couple of years the Operating Margin of KO has declined.
KO's Gross Margin of 61.63% is amongst the best of the industry. KO outperforms 96.97% of its industry peers.
KO's Gross Margin has been stable in the last couple of years.
| 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.
KO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KO has more shares outstanding
The debt/assets ratio for KO is higher compared to a year ago.
2.2 Solvency
KO has an Altman-Z score of 4.54. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.54, KO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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.
The Debt to FCF ratio of KO (8.51) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.46 is on the high side and indicates that KO has dependencies on debt financing.
The Debt to Equity ratio of KO (1.46) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.78
WACC7.98%
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 (1.21) which is in line with its industry peers.
A Quick Ratio of 1.00 indicates that KO may have some problems paying its short term obligations.
KO's Quick ratio of 1.00 is fine compared to the rest 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
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.
KO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.80%.
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
The Earnings Per Share is expected to grow by 7.18% on average over the next years.
The Revenue is expected to grow by 3.00% on average over the next years.
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
KO is valuated rather expensively with a Price/Earnings ratio of 24.62.
KO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, KO is valued at the same level.
The Price/Forward Earnings ratio is 22.04, 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 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.62 | ||
| Fwd PE | 22.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KO is valued a bit more expensive than 60.61% of the companies in the same industry.
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 60.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.47 | ||
| EV/EBITDA | 21.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)3.84
EPS Next 2Y7.32%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.12, KO pays a bit more dividend than its industry peers.
KO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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
5.3 Sustainability
65.04% 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.
DP65.04%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
73.12
+0.24 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.62%
Inst Owner Change0.65%
Ins Owners0.57%
Ins Owner Change-1.05%
Market Cap314.53B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target79.67 (8.96%)
Short Float %0.92%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)1.28%
PT rev (3m)0.48%
EPS NQ rev (1m)-5.2%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.62 | ||
| Fwd PE | 22.04 | ||
| P/S | 6.6 | ||
| P/FCF | 56.47 | ||
| P/OCF | 41.37 | ||
| P/B | 10.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.33 |
EPS(TTM)2.97
EY4.06%
EPS(NY)3.32
Fwd EY4.54%
FCF(TTM)1.29
FCFY1.77%
OCF(TTM)1.77
OCFY2.42%
SpS11.08
BVpS7.26
TBVpS-0.22
PEG (NY)3.63
PEG (5Y)3.84
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 | 4.54 |
F-Score7
WACC7.98%
ROIC/WACC1.78
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 24.62 and the Price/Book (PB) ratio is 10.07.
What is the financial health of COCA-COLA CO/THE (KO) stock?
The financial health rating of COCA-COLA CO/THE (KO) is 4 / 10.