COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - NYSE:KO - US1912161007 - Common Stock
70.55 USD
+1.49 (+2.16%)
70.26 USD
-0.29 (-0.41%)
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. KO scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, KO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year KO was profitable.
In the past year KO had a positive cash flow from operations.
Each year in the past 5 years KO has been profitable.
KO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KO has a better Return On Assets (12.29%) than 90.91% of its industry peers.
KO has a better Return On Equity (41.70%) than 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 10.75%.
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
With an excellent Profit Margin value of 27.34%, KO belongs to the best 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.
KO has a better Operating Margin (31.14%) than 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.
KO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KO has a worse debt to assets ratio.
2.2 Solvency
KO has an Altman-Z score of 4.41. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.41, KO is in the better half of the industry, outperforming 78.79% 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.
KO has a Debt to FCF ratio (8.51) which is comparable to the rest of the industry.
KO has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.46, KO is doing worse than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.41 |
ROIC/WACC1.76
WACC8.05%
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.
The Current ratio of KO (1.21) is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.00, KO is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| 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.
Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 2.80% in the last year.
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
KO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.96% yearly.
Based on estimates for the next years, KO will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y6.46%
EPS Next 2Y7.15%
EPS Next 3Y7.19%
EPS Next 5Y6.96%
Revenue Next Year4.75%
Revenue Next 2Y5.14%
Revenue Next 3Y5.21%
Revenue Next 5Y4.93%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.75 indicates a rather 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.
KO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
KO is valuated rather expensively with a Price/Forward Earnings ratio of 21.34.
The rest of the industry has a similar Price/Forward Earnings ratio as KO.
KO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 21.34 |
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.
60.61% 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 | 54.51 | ||
| EV/EBITDA | 20.31 |
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)3.68
PEG (5Y)3.7
EPS Next 2Y7.15%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, KO has a reasonable but not impressive dividend return.
KO's Dividend Yield is a higher than the industry average which is at 3.06.
KO's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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.
The dividend of KO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.04%
EPS Next 2Y7.15%
EPS Next 3Y7.19%
70.55
+1.49 (+2.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.62%
Inst Owner Change-0.35%
Ins Owners0.57%
Ins Owner Change-0.65%
Market Cap303.62B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target79.4 (12.54%)
Short Float %0.86%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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)0.45%
PT rev (3m)-0.08%
EPS NQ rev (1m)-5.09%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 21.34 | ||
| P/S | 6.37 | ||
| P/FCF | 54.51 | ||
| P/OCF | 39.93 | ||
| P/B | 9.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.31 |
EPS(TTM)2.97
EY4.21%
EPS(NY)3.31
Fwd EY4.69%
FCF(TTM)1.29
FCFY1.83%
OCF(TTM)1.77
OCFY2.5%
SpS11.07
BVpS7.26
TBVpS-0.22
PEG (NY)3.68
PEG (5Y)3.7
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 | 4.41 |
F-Score7
WACC8.05%
ROIC/WACC1.76
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 Y6.46%
EPS Next 2Y7.15%
EPS Next 3Y7.19%
EPS Next 5Y6.96%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%3.87%
Revenue Next Year4.75%
Revenue Next 2Y5.14%
Revenue Next 3Y5.21%
Revenue Next 5Y4.93%
EBIT growth 1Y40.28%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year16.47%
EBIT Next 3Y10.32%
EBIT Next 5Y8.34%
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 23.75 and the Price/Book (PB) ratio is 9.72.
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.