COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:KO • US1912161007
74.885 USD
+0.08 (+0.1%)
Last: Feb 2, 2026, 10:05 AM
We assign a fundamental rating of 5 out of 10 to KO. KO was compared to 33 industry peers in the Beverages industry. KO scores excellent on profitability, but 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
- KO had positive earnings in the past year.
- In the past year KO had a positive cash flow from operations.
- 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's Return On Assets of 12.29% is amongst the best of the industry. KO outperforms 87.88% of its industry peers.
- KO has a better Return On Equity (41.70%) than 96.97% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.17%, KO belongs to the top of the industry, outperforming 81.82% 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 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 has a better Profit Margin (27.34%) than 96.97% of its industry peers.
- KO's Profit Margin has been stable in the last couple of years.
- The Operating Margin of KO (31.14%) is better than 96.97% of its industry peers.
- KO's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 61.63%, KO belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
- 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.
- The number of shares outstanding for KO remains at a similar level compared to 1 year ago.
- The number of shares outstanding for KO has been increased compared to 5 years ago.
- KO has a worse debt/assets ratio than last year.
2.2 Solvency
- KO has an Altman-Z score of 4.61. 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 4.61, KO belongs to the top of the industry, outperforming 84.85% 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.
- 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.
- KO has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
- KO has a Debt to Equity ratio of 1.46. This is amonst the worse of the industry: KO underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.61 |
ROIC/WACC1.72
WACC8.22%
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.
- Looking at the Current ratio, with a value of 1.21, KO is in line with its industry, outperforming 45.45% of the companies in the same industry.
- A Quick Ratio of 1.00 indicates that KO may have some problems paying 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
- KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.32%.
- KO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.
- The Revenue has been growing slightly by 2.80% in the past 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 7.18% yearly.
- The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y6.91%
EPS Next 2Y7.31%
EPS Next 3Y7.38%
EPS Next 5Y7.18%
Revenue Next Year4.47%
Revenue Next 2Y4.79%
Revenue Next 3Y4.61%
Revenue Next 5Y3%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.21, which means the current valuation is very expensive for KO.
- KO's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, KO is valued at the same level.
- With a Price/Forward Earnings ratio of 22.58, KO is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as KO.
- KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 22.58 |
4.2 Price Multiples
- 60.61% of the companies in the same industry are cheaper than KO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, KO is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.83 | ||
| EV/EBITDA | 21.85 |
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)3.65
PEG (5Y)3.93
EPS Next 2Y7.31%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.78%, KO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.74, KO pays a bit more dividend than its industry peers.
- KO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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 2Y7.31%
EPS Next 3Y7.38%
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 25.21 and the Price/Book (PB) ratio is 10.31.
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%.