COCA-COLA CO/THE (KO) Fundamental Analysis & Valuation

NYSE:KO • US1912161007

Current stock price

76.28 USD
+1.65 (+2.21%)
At close:
76.21 USD
-0.07 (-0.09%)
After Hours:

This KO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. KO Profitability Analysis

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.
  • In the past 5 years KO always reported a positive cash flow from operatings.
KO Yearly Net Income VS EBIT VS OCF VS FCFKO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 12.50%, KO belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
  • With an excellent Return On Equity value of 40.74%, KO belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 13.42%, KO belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
  • KO had an Average Return On Invested Capital over the past 3 years of 12.68%. This is in line with the industry average of 11.89%.
  • The 3 year average ROIC (12.68%) for KO is below the current ROIC(13.42%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 12.5%
ROE 40.74%
ROIC 13.42%
ROA(3y)11.35%
ROA(5y)10.94%
ROE(3y)41.61%
ROE(5y)41.38%
ROIC(3y)12.68%
ROIC(5y)12.29%
KO Yearly ROA, ROE, ROICKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 27.34%, KO belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
  • KO's Profit Margin has improved in the last couple of years.
  • KO has a Operating Margin of 29.13%. This is amongst the best in the industry. KO outperforms 87.88% of its industry peers.
  • In the last couple of years the Operating Margin of KO has remained more or less at the same level.
  • KO has a Gross Margin of 61.63%. This is amongst the best in the industry. KO outperforms 93.94% of its industry peers.
  • KO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 29.13%
PM (TTM) 27.34%
GM 61.63%
OM growth 3Y6.21%
OM growth 5Y0.93%
PM growth 3Y7.21%
PM growth 5Y3.1%
GM growth 3Y1.96%
GM growth 5Y0.77%
KO Yearly Profit, Operating, Gross MarginsKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

2. KO Health Analysis

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.
  • The number of shares outstanding for KO remains at a similar level compared to 5 years ago.
  • KO has a better debt/assets ratio than last year.
KO Yearly Shares OutstandingKO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
KO Yearly Total Debt VS Total AssetsKO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • KO has an Altman-Z score of 4.74. 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 4.74, KO belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
  • The Debt to FCF ratio of KO is 8.59, which is on the high side as it means it would take KO, 8.59 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 8.59, KO is in line with its industry, outperforming 48.48% of the companies in the same industry.
  • KO has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
  • KO has a Debt to Equity ratio of 1.36. This is in the lower half of the industry: KO underperforms 75.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF 8.59
Altman-Z 4.74
ROIC/WACC1.6
WACC8.36%
KO Yearly LT Debt VS Equity VS FCFKO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • KO has a Current Ratio of 1.46. 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 1.46, KO is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
  • KO has a Quick Ratio of 1.25. This is a normal value and indicates that KO is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 1.25, KO is doing good in the industry, outperforming 78.79% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.25
KO Yearly Current Assets VS Current LiabilitesKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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4

3. KO Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.17% over the past year.
  • Measured over the past years, KO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.00% on average per year.
  • Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
  • Measured over the past years, KO shows a small growth in Revenue. The Revenue has been growing by 7.75% on average per year.
EPS 1Y (TTM)4.17%
EPS 3Y6.55%
EPS 5Y9%
EPS Q2Q%5.45%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y3.69%
Revenue growth 5Y7.75%
Sales Q2Q%3.62%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.88% on average over the next years.
  • Based on estimates for the next years, KO will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
EPS Next Y10.82%
EPS Next 2Y8.93%
EPS Next 3Y8.16%
EPS Next 5Y7.88%
Revenue Next Year1.51%
Revenue Next 2Y1.64%
Revenue Next 3Y2.77%
Revenue Next 5Y3.53%

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.
KO Yearly Revenue VS EstimatesKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 20B 40B 60B
KO Yearly EPS VS EstimatesKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1 2 3 4 5

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3

4. KO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.43, which means the current valuation is very expensive for KO.
  • The rest of the industry has a similar Price/Earnings ratio as KO.
  • KO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 22.95 indicates a rather expensive valuation of KO.
  • KO's Price/Forward Earnings ratio is in line with the industry average.
  • KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.43
Fwd PE 22.95
KO Price Earnings VS Forward Price EarningsKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as KO.
  • 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 RankSector Rank
P/FCF 61.99
EV/EBITDA 22.9
KO Per share dataKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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)2.35
PEG (5Y)2.83
EPS Next 2Y8.93%
EPS Next 3Y8.16%

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7

5. KO Dividend Analysis

5.1 Amount

  • KO has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.68, 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 1.81.
Industry RankSector Rank
Dividend Yield 2.82%

5.2 History

  • The dividend of KO has a limited annual growth rate of 4.44%.
  • KO has paid a dividend for at least 10 years, which is 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)4.44%
Div Incr Years34
Div Non Decr Years34
KO Yearly Dividends per shareKO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • KO pays out 66.98% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of KO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.98%
EPS Next 2Y8.93%
EPS Next 3Y8.16%
KO Yearly Income VS Free CF VS DividendKO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
KO Dividend Payout.KO Dividend Payout, showing the Payout Ratio.KO Dividend Payout.PayoutRetained Earnings

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KO Fundamentals: All Metrics, Ratios and Statistics

COCA-COLA CO/THE

NYSE:KO (4/23/2026, 8:22:41 PM)

After market: 76.21 -0.07 (-0.09%)

76.28

+1.65 (+2.21%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners66.54%
Inst Owner Change-0.07%
Ins Owners0.57%
Ins Owner Change-0.16%
Market Cap328.32B
Revenue(TTM)47.94B
Net Income(TTM)13.11B
Analysts81.71
Price Target85.38 (11.93%)
Short Float %1.19%
Short Ratio2.59
Dividend
Industry RankSector Rank
Dividend Yield 2.82%
Yearly Dividend2.04
Dividend Growth(5Y)4.44%
DP66.98%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.15%
Min EPS beat(2)-0.06%
Max EPS beat(2)2.35%
EPS beat(4)2
Avg EPS beat(4)0.77%
Min EPS beat(4)-0.7%
Max EPS beat(4)2.35%
EPS beat(8)6
Avg EPS beat(8)1.06%
EPS beat(12)9
Avg EPS beat(12)1.4%
EPS beat(16)12
Avg EPS beat(16)1.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.68%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-2.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-2.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)-0.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)1.26%
PT rev (3m)6.59%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-3.14%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-3.35%
Valuation
Industry RankSector Rank
PE 25.43
Fwd PE 22.95
P/S 6.85
P/FCF 61.99
P/OCF 44.32
P/B 10.21
P/tB 79.17
EV/EBITDA 22.9
EPS(TTM)3
EY3.93%
EPS(NY)3.32
Fwd EY4.36%
FCF(TTM)1.23
FCFY1.61%
OCF(TTM)1.72
OCFY2.26%
SpS11.14
BVpS7.47
TBVpS0.96
PEG (NY)2.35
PEG (5Y)2.83
Graham Number22.4609 (-70.55%)
Profitability
Industry RankSector Rank
ROA 12.5%
ROE 40.74%
ROCE 16.72%
ROIC 13.42%
ROICexc 16.48%
ROICexgc 27.67%
OM 29.13%
PM (TTM) 27.34%
GM 61.63%
FCFM 11.05%
ROA(3y)11.35%
ROA(5y)10.94%
ROE(3y)41.61%
ROE(5y)41.38%
ROIC(3y)12.68%
ROIC(5y)12.29%
ROICexc(3y)15.52%
ROICexc(5y)14.87%
ROICexgc(3y)29.48%
ROICexgc(5y)29.51%
ROCE(3y)16.01%
ROCE(5y)15.55%
ROICexgc growth 3Y-0.8%
ROICexgc growth 5Y5.47%
ROICexc growth 3Y7.14%
ROICexc growth 5Y7.02%
OM growth 3Y6.21%
OM growth 5Y0.93%
PM growth 3Y7.21%
PM growth 5Y3.1%
GM growth 3Y1.96%
GM growth 5Y0.77%
F-Score7
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF 8.59
Debt/EBITDA 2.91
Cap/Depr 201.14%
Cap/Sales 4.41%
Interest Coverage 250
Cash Conversion 49.34%
Profit Quality 40.41%
Current Ratio 1.46
Quick Ratio 1.25
Altman-Z 4.74
F-Score7
WACC8.36%
ROIC/WACC1.6
Cap/Depr(3y)185.78%
Cap/Depr(5y)153.85%
Cap/Sales(3y)4.28%
Cap/Sales(5y)3.97%
Profit Quality(3y)58.66%
Profit Quality(5y)78.22%
High Growth Momentum
Growth
EPS 1Y (TTM)4.17%
EPS 3Y6.55%
EPS 5Y9%
EPS Q2Q%5.45%
EPS Next Y10.82%
EPS Next 2Y8.93%
EPS Next 3Y8.16%
EPS Next 5Y7.88%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y3.69%
Revenue growth 5Y7.75%
Sales Q2Q%3.62%
Revenue Next Year1.51%
Revenue Next 2Y1.64%
Revenue Next 3Y2.77%
Revenue Next 5Y3.53%
EBIT growth 1Y26.43%
EBIT growth 3Y10.13%
EBIT growth 5Y8.75%
EBIT Next Year14.16%
EBIT Next 3Y8.68%
EBIT Next 5Y7.82%
FCF growth 1Y11.71%
FCF growth 3Y-17.8%
FCF growth 5Y-9.38%
OCF growth 1Y8.86%
OCF growth 3Y-12.39%
OCF growth 5Y-5.53%

COCA-COLA CO/THE / KO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of COCA-COLA CO/THE (KO) stock?

ChartMill assigns a fundamental rating of 6 / 10 to KO.


What is the valuation status for KO stock?

ChartMill assigns a valuation rating of 3 / 10 to COCA-COLA CO/THE (KO). This can be considered as Overvalued.


How profitable is COCA-COLA CO/THE (KO) stock?

COCA-COLA CO/THE (KO) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for KO stock?

The Price/Earnings (PE) ratio for COCA-COLA CO/THE (KO) is 25.43 and the Price/Book (PB) ratio is 10.21.


Can you provide the financial health for KO stock?

The financial health rating of COCA-COLA CO/THE (KO) is 5 / 10.