COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - NYSE:KO - US1912161007 - Common Stock
70.81 USD
-0.41 (-0.58%)
70.74 USD
-0.07 (-0.1%)
KO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. KO scores excellent on profitability, but there are concerns on its financial health. KO is quite expensive at the moment. 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.
In the past 5 years KO always reported a positive cash flow from operatings.
1.2 Ratios
KO has a better Return On Assets (11.68%) than 90.63% of its industry peers.
KO's Return On Equity of 42.62% is amongst the best of the industry. KO outperforms 100.00% of its industry peers.
With a decent Return On Invested Capital value of 12.72%, KO is doing good in the industry, outperforming 71.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KO is in line with the industry average of 10.90%.
The 3 year average ROIC (11.98%) for KO is below the current ROIC(12.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 42.62% | ||
| ROIC | 12.72% |
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 25.89% is amongst the best of the industry. KO outperforms 100.00% of its industry peers.
KO's Profit Margin has been stable in the last couple of years.
The Operating Margin of KO (28.59%) is better than 90.63% of its industry peers.
KO's Operating Margin has declined in the last couple of years.
KO has a Gross Margin of 61.43%. This is amongst the best in the industry. KO outperforms 96.88% of its industry peers.
KO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.59% | ||
| PM (TTM) | 25.89% | ||
| GM | 61.43% |
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.
The number of shares outstanding for KO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KO has more shares outstanding
KO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.42 indicates that KO is not in any danger for bankruptcy at the moment.
KO has a Altman-Z score of 4.42. This is amongst the best in the industry. KO outperforms 81.25% of its industry peers.
KO has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.73, KO is doing worse than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.42 |
ROIC/WACC1.6
WACC7.94%
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.
KO has a Current ratio of 1.21. This is comparable to the rest of the industry: KO outperforms 43.75% of its industry peers.
A Quick Ratio of 0.98 indicates that KO may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.98, KO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.32% over the past year.
KO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.
Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 2.86% in the last year.
KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.
EPS 1Y (TTM)5.32%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%6.49%
Revenue 1Y (TTM)2.86%
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.84, which indicates a rather expensive current 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.
The average S&P500 Price/Earnings ratio is at 27.57. KO is around the same levels.
KO is valuated rather expensively with a Price/Forward Earnings ratio of 21.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.09. KO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
KO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.86 |
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)3.69
PEG (5Y)3.71
EPS Next 2Y7.15%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.98%.
Compared to an average industry Dividend Yield of 2.99, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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
69.42% 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.
DP69.42%
EPS Next 2Y7.15%
EPS Next 3Y7.19%
70.81
-0.41 (-0.58%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.62%
Inst Owner Change-0.01%
Ins Owners0.57%
Ins Owner Change-0.65%
Market Cap304.74B
Revenue(TTM)47.06B
Net Income(TTM)12.18B
Analysts82.86
Price Target78.66 (11.09%)
Short Float %1.01%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.94
Dividend Growth(5Y)3.93%
DP69.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.39%
Min EPS beat(2)-0.7%
Max EPS beat(2)1.47%
EPS beat(4)3
Avg EPS beat(4)1.17%
Min EPS beat(4)-0.7%
Max EPS beat(4)3.5%
EPS beat(8)6
Avg EPS beat(8)0.9%
EPS beat(12)9
Avg EPS beat(12)1.43%
EPS beat(16)13
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-2.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)3.7%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)8
Avg Revenue beat(16)0.53%
PT rev (1m)-0.5%
PT rev (3m)-1.07%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.42 | ||
| P/S | 6.48 | ||
| P/FCF | N/A | ||
| P/OCF | 234.24 | ||
| P/B | 10.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.86 |
EPS(TTM)2.97
EY4.19%
EPS(NY)3.31
Fwd EY4.67%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.3
OCFY0.43%
SpS10.94
BVpS6.64
TBVpS-0.86
PEG (NY)3.69
PEG (5Y)3.71
Graham Number21.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 42.62% | ||
| ROCE | 16.33% | ||
| ROIC | 12.72% | ||
| ROICexc | 15.23% | ||
| ROICexgc | 27.45% | ||
| OM | 28.59% | ||
| PM (TTM) | 25.89% | ||
| GM | 61.43% | ||
| FCFM | N/A |
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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 185.6% | ||
| Cap/Sales | 4.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 8.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 4.42 |
F-Score6
WACC7.94%
ROIC/WACC1.6
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)2.86%
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 1Y19.36%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year16.47%
EBIT Next 3Y10.32%
EBIT Next 5Y8.34%
FCF growth 1Y-107.61%
FCF growth 3Y-25.04%
FCF growth 5Y-10.85%
OCF growth 1Y-88.28%
OCF growth 3Y-18.62%
OCF growth 5Y-8.26%