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

NYSE:KO • US1912161007

78.255 USD
-1.09 (-1.37%)
Last: Mar 4, 2026, 01:56 PM
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This KO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

KO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. KO scores excellent on profitability, but there are some minor concerns on its financial health. KO is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. KO Profitability Analysis

1.1 Basic Checks

  • In the past year KO was profitable.
  • In the past year KO had a positive cash flow from operations.
  • Each year in the past 5 years KO has been profitable.
  • Each year in the past 5 years KO had a positive operating cash flow.
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

  • KO's Return On Assets of 12.50% is amongst the best of the industry. KO outperforms 84.85% of its industry peers.
  • KO has a better Return On Equity (40.74%) than 96.97% of its industry peers.
  • The Return On Invested Capital of KO (13.42%) is better than 81.82% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for KO is in line with the industry average of 11.66%.
  • The last Return On Invested Capital (13.42%) for KO is above the 3 year average (12.68%), which is a sign of increasing profitability.
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

  • KO has a better Profit Margin (27.34%) than 96.97% of its industry peers.
  • In the last couple of years the Profit Margin of KO has grown nicely.
  • KO has a Operating Margin of 29.13%. This is amongst the best in the industry. KO outperforms 87.88% of its industry peers.
  • KO's Operating Margin has been stable in the last couple of years.
  • KO has a better Gross Margin (61.63%) than 93.94% of its industry peers.
  • In the last couple of years the Gross Margin of KO has remained more or less at the same level.
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.
  • The number of shares outstanding for KO remains at a similar level compared to 1 year ago.
  • KO has about the same amout of shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, KO has an improved debt to assets ratio.
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

  • An Altman-Z score of 4.90 indicates that KO is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.90, KO belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
  • KO has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as KO would need 8.59 years to pay back of all of its debts.
  • KO has a Debt to FCF ratio (8.59) which is in line with its industry peers.
  • KO has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.36, KO is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF 8.59
Altman-Z 4.9
ROIC/WACC1.65
WACC8.15%
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

  • A Current Ratio of 1.46 indicates that KO should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.46, KO is doing good in 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.
  • Looking at the Quick ratio, with a value of 1.25, KO is in the better half of 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

  • KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
  • The Earnings Per Share has been growing by 9.00% on average over the past years. This is quite good.
  • KO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.87%.
  • 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

  • KO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.13% yearly.
  • The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y10.58%
EPS Next 2Y8.99%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue Next Year1.72%
Revenue Next 2Y1.82%
Revenue Next 3Y2.84%
Revenue Next 5Y3.87%

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.
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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2

4. KO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.08 indicates a quite expensive valuation of KO.
  • KO's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.83. KO is around the same levels.
  • KO is valuated rather expensively with a Price/Forward Earnings ratio of 23.59.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KO is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, KO is valued at the same level.
Industry RankSector Rank
PE 26.08
Fwd PE 23.59
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

  • Based on the Enterprise Value to EBITDA ratio, KO is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, KO is valued a bit more expensive than 60.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 63.56
EV/EBITDA 24.24
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)2.47
PEG (5Y)2.9
EPS Next 2Y8.99%
EPS Next 3Y8.39%

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6

5. KO Dividend Analysis

5.1 Amount

  • KO has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.72, 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 1.82.
Industry RankSector Rank
Dividend Yield 2.63%

5.2 History

  • The dividend of KO has a limited annual growth rate of 4.44%.
  • 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)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

  • 66.98% 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.
DP66.98%
EPS Next 2Y8.99%
EPS Next 3Y8.39%
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 (3/4/2026, 1:56:02 PM)

78.255

-1.09 (-1.37%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-10
Earnings (Next)04-27
Inst Owners66.03%
Inst Owner Change0.48%
Ins Owners0.57%
Ins Owner Change3.57%
Market Cap336.62B
Revenue(TTM)47.94B
Net Income(TTM)13.11B
Analysts82.29
Price Target84.31 (7.74%)
Short Float %1.06%
Short Ratio2.28
Dividend
Industry RankSector Rank
Dividend Yield 2.63%
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)5.26%
PT rev (3m)5.83%
EPS NQ rev (1m)-2.68%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)-3.2%
Revenue NY rev (3m)-3.1%
Valuation
Industry RankSector Rank
PE 26.08
Fwd PE 23.59
P/S 7.02
P/FCF 63.56
P/OCF 45.44
P/B 10.46
P/tB 81.17
EV/EBITDA 24.24
EPS(TTM)3
EY3.83%
EPS(NY)3.32
Fwd EY4.24%
FCF(TTM)1.23
FCFY1.57%
OCF(TTM)1.72
OCFY2.2%
SpS11.14
BVpS7.48
TBVpS0.96
PEG (NY)2.47
PEG (5Y)2.9
Graham Number22.47
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 4.9
F-Score7
WACC8.15%
ROIC/WACC1.65
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 Y10.58%
EPS Next 2Y8.99%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y3.69%
Revenue growth 5Y7.75%
Sales Q2Q%3.62%
Revenue Next Year1.72%
Revenue Next 2Y1.82%
Revenue Next 3Y2.84%
Revenue Next 5Y3.87%
EBIT growth 1Y26.43%
EBIT growth 3Y10.13%
EBIT growth 5Y8.75%
EBIT Next Year14.56%
EBIT Next 3Y8.86%
EBIT Next 5Y8.03%
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 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 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 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 26.08 and the Price/Book (PB) ratio is 10.46.


Can you provide the dividend sustainability for KO stock?

The dividend rating of COCA-COLA CO/THE (KO) is 6 / 10 and the dividend payout ratio is 66.98%.