COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
70.47 USD
+0.03 (+0.04%)
Overall KO gets a fundamental rating of 5 out of 10. We evaluated KO against 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 is valued expensive and it does not seem to be growing. KO also has an excellent dividend rating.
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.
- KO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KO's Return On Assets of 12.29% is amongst the best of the industry. KO outperforms 87.88% of its industry peers.
- KO's Return On Equity of 41.70% is amongst the best of the industry. KO outperforms 96.97% 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.
- The Average Return On Invested Capital over the past 3 years for KO is in line with the industry average of 11.45%.
- 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 96.97% of its industry peers.
- 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.
- The Gross Margin of KO (61.63%) is better than 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.
- Compared to 1 year ago, KO has about the same amount of shares outstanding.
- 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
- An Altman-Z score of 4.46 indicates that KO is not in any danger for bankruptcy at the moment.
- The Altman-Z score of KO (4.46) is better than 84.85% 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.
- With a Debt to FCF ratio value of 8.51, KO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- A Debt/Equity ratio of 1.46 is on the high side and indicates that KO has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.46, KO is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.73
WACC8.17%
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.
- 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.
- The Quick ratio of KO (1.00) is better than 66.67% 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.
- The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
- Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 2.80% in the last 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
- KO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.18% yearly.
- KO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y6.91%
EPS Next 2Y7.31%
EPS Next 3Y7.38%
EPS Next 5Y7.18%
Revenue Next Year4.49%
Revenue Next 2Y4.76%
Revenue Next 3Y4.59%
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 23.73, KO is valued on the expensive side.
- KO's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of KO to the average of the S&P500 Index (27.38), we can say KO is valued inline with the index average.
- With a Price/Forward Earnings ratio of 21.25, KO is valued on the expensive side.
- 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 24.29. KO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 21.25 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.42 | ||
| EV/EBITDA | 20.67 |
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)3.43
PEG (5Y)3.7
EPS Next 2Y7.31%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.89%, KO has a reasonable but not impressive dividend return.
- KO's Dividend Yield is a higher than the industry average which is at 1.73.
- Compared to an average S&P500 Dividend Yield of 1.84, KO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
- 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 2Y7.31%
EPS Next 3Y7.38%
NYSE:KO (1/20/2026, 10:43:09 AM)
70.47
+0.03 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners66.03%
Inst Owner Change0.08%
Ins Owners0.57%
Ins Owner Change-1.05%
Market Cap303.13B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target80.1 (13.67%)
Short Float %0.92%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend1.94
Dividend Growth(5Y)3.93%
DP65.04%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0.54%
PT rev (3m)1.83%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-5.01%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 21.25 | ||
| P/S | 6.36 | ||
| P/FCF | 54.42 | ||
| P/OCF | 39.87 | ||
| P/B | 9.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.67 |
EPS(TTM)2.97
EY4.21%
EPS(NY)3.32
Fwd EY4.71%
FCF(TTM)1.29
FCFY1.84%
OCF(TTM)1.77
OCFY2.51%
SpS11.08
BVpS7.26
TBVpS-0.22
PEG (NY)3.43
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 | 4.46 |
F-Score7
WACC8.17%
ROIC/WACC1.73
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 Y6.91%
EPS Next 2Y7.31%
EPS Next 3Y7.38%
EPS Next 5Y7.18%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%3.87%
Revenue Next Year4.49%
Revenue Next 2Y4.76%
Revenue Next 3Y4.59%
Revenue Next 5Y3%
EBIT growth 1Y40.28%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year15.06%
EBIT Next 3Y9.79%
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 for 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.
Can you provide the PE and PB ratios for KO stock?
The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 23.73 and the Price/Book (PB) ratio is 9.7.
Can you provide the dividend sustainability for KO stock?
The dividend rating of COCA-COLA CO/THE (KO) is 7 / 10 and the dividend payout ratio is 65.04%.