COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
70.09 USD
-0.16 (-0.23%)
70.1 USD
+0.01 (+0.01%)
Taking everything into account, KO scores 5 out of 10 in our fundamental rating. KO was compared to 34 industry peers in the Beverages industry. KO has an excellent profitability rating, but there are some minor concerns on its financial health. KO does not seem to be growing, but still is valued expensively.
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.
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.
1.2 Ratios
With an excellent Return On Assets value of 12.29%, KO belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
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 82.35% 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 11.60%.
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 Profit Margin of 27.34%. This is amongst the best in the industry. KO outperforms 100.00% of its industry peers.
KO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 31.14%, KO belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
KO's Operating Margin has declined in the last couple of years.
KO has a better Gross Margin (61.63%) than 97.06% 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.
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 4.45 indicates that KO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.45, KO belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
The Debt to FCF ratio of KO is 8.51, which is on the high side as it means it would take KO, 8.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.51, KO is in line with its industry, outperforming 47.06% 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.
With a Debt to Equity ratio value of 1.46, KO is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.75
WACC8.1%
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 (1.21) which is in line with its industry peers.
A Quick Ratio of 1.00 indicates that KO may have some problems paying its short term obligations.
KO's Quick ratio of 1.00 is fine compared to the rest of the industry. KO outperforms 64.71% 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.
KO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.80%.
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
The Earnings Per Share is expected to grow by 7.18% 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 3.00% on average per year.
EPS Next Y6.87%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
EPS Next 5Y7.18%
Revenue Next Year4.49%
Revenue Next 2Y4.74%
Revenue Next 3Y4.57%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
KO is valuated rather expensively with a Price/Earnings ratio of 23.60.
The rest of the industry has a similar Price/Earnings ratio as KO.
The average S&P500 Price/Earnings ratio is at 26.28. KO is around the same levels.
Based on the Price/Forward Earnings ratio of 21.13, the valuation of KO can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as KO.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, KO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 21.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KO is on the same level as its industry peers.
KO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.13 | ||
| EV/EBITDA | 20.62 |
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)3.44
PEG (5Y)3.68
EPS Next 2Y7.32%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, KO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.05, 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of KO has a limited annual growth rate of 3.93%.
KO has paid a dividend for at least 10 years, which is 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
KO pays out 65.04% 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.
DP65.04%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
70.09
-0.16 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.93%
Inst Owner Change0.68%
Ins Owners0.57%
Ins Owner Change-1.05%
Market Cap301.50B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target79.67 (13.67%)
Short Float %0.97%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)0.33%
PT rev (3m)0.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 21.13 | ||
| P/S | 6.33 | ||
| P/FCF | 54.13 | ||
| P/OCF | 39.66 | ||
| P/B | 9.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.62 |
EPS(TTM)2.97
EY4.24%
EPS(NY)3.32
Fwd EY4.73%
FCF(TTM)1.29
FCFY1.85%
OCF(TTM)1.77
OCFY2.52%
SpS11.08
BVpS7.26
TBVpS-0.22
PEG (NY)3.44
PEG (5Y)3.68
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 | 4.45 |
F-Score7
WACC8.1%
ROIC/WACC1.75
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 Y6.87%
EPS Next 2Y7.32%
EPS Next 3Y7.36%
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 2Y4.74%
Revenue Next 3Y4.57%
Revenue Next 5Y3%
EBIT growth 1Y40.28%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year15.06%
EBIT Next 3Y9.76%
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 of COCA-COLA CO/THE (KO) stock?
ChartMill assigns a valuation rating of 3 / 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 23.6 and the Price/Book (PB) ratio is 9.65.
What is the financial health of COCA-COLA CO/THE (KO) stock?
The financial health rating of COCA-COLA CO/THE (KO) is 4 / 10.