COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KO - US1912161007 - Common Stock
69.28 USD
-0.93 (-1.32%)
Overall KO gets a fundamental rating of 5 out of 10. We evaluated KO against 34 industry peers in the Beverages industry. While KO has a great profitability rating, there are some minor concerns on its financial health. KO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KO was profitable.
In the past year KO had a positive cash flow from operations.
KO had positive earnings in each of the past 5 years.
KO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KO has a Return On Assets of 12.29%. This is amongst the best in the industry. KO outperforms 91.18% of its industry peers.
Looking at the Return On Equity, with a value of 41.70%, KO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
KO's Return On Invested Capital of 14.17% is amongst the best of the industry. KO outperforms 82.35% 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 11.55%.
The 3 year average ROIC (11.98%) for KO is below the current ROIC(14.17%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 27.34%, KO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
KO's Profit Margin has been stable in the last couple of years.
KO's Operating Margin of 31.14% is amongst the best of the industry. KO outperforms 97.06% of its industry peers.
KO's Operating Margin has declined in the last couple of years.
KO has a Gross Margin of 61.63%. This is amongst the best in the industry. KO outperforms 97.06% 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 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.
KO has more shares outstanding than it did 5 years ago.
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.
KO has a better Altman-Z score (4.45) than 85.29% 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.
KO has a Debt to FCF ratio (8.51) which is in line with its industry peers.
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 in the lower half of the industry: KO underperforms 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.75
WACC8.11%
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.
A Quick Ratio of 1.00 indicates that KO may have some problems paying its short term obligations.
With a decent Quick ratio value of 1.00, KO is doing good in the industry, outperforming 64.71% of the companies in the same industry.
| 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%.
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
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 Y6.87%
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.
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
A Price/Earnings ratio of 23.33 indicates a rather expensive valuation of KO.
KO's Price/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/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.89, which indicates a rather expensive current valuation of KO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KO is on the same level as its industry peers.
KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 20.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KO.
The rest of the industry has a similar Price/Free Cash Flow ratio as KO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.5 | ||
| EV/EBITDA | 20.61 |
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)3.4
PEG (5Y)3.63
EPS Next 2Y7.32%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 2.90%.
KO's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.31, KO pays a bit more dividend than the S&P500 average.
| 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
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 2Y7.32%
EPS Next 3Y7.36%
NYSE:KO (12/11/2025, 2:58:09 PM)
69.28
-0.93 (-1.32%)
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 Cap298.02B
Revenue(TTM)47.66B
Net Income(TTM)13.03B
Analysts82.86
Price Target79.67 (15%)
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 | 23.33 | ||
| Fwd PE | 20.89 | ||
| P/S | 6.25 | ||
| P/FCF | 53.5 | ||
| P/OCF | 39.2 | ||
| P/B | 9.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.61 |
EPS(TTM)2.97
EY4.29%
EPS(NY)3.32
Fwd EY4.79%
FCF(TTM)1.29
FCFY1.87%
OCF(TTM)1.77
OCFY2.55%
SpS11.08
BVpS7.26
TBVpS-0.22
PEG (NY)3.4
PEG (5Y)3.63
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
WACC8.11%
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 23.33 and the Price/Book (PB) ratio is 9.54.
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.