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

NYSE:KO • US1912161007

Current stock price

76.63 USD
+0.35 (+0.46%)
At close:
76.63 USD
0 (0%)
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.
  • In the past 5 years KO has always 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

  • 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.
  • With an excellent Return On Invested Capital value of 13.42%, KO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for KO 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.
  • In the last couple of years the Profit Margin of KO has grown nicely.
  • The Operating Margin of KO (29.13%) is better than 87.88% of its industry peers.
  • KO's Operating Margin has been stable 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 93.94% of the companies in the same industry.
  • 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.
  • KO has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, KO has about the same amount of shares outstanding.
  • The debt/assets ratio for KO has been reduced compared to a year ago.
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 4.79. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
  • KO's Altman-Z score of 4.79 is amongst the best of the industry. KO outperforms 87.88% of its industry peers.
  • 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.
  • KO's Debt to FCF ratio of 8.59 is in line compared to the rest of the industry. KO outperforms 48.48% of its industry peers.
  • A Debt/Equity ratio of 1.36 is on the high side and indicates that KO has dependencies on debt financing.
  • KO has a worse Debt to Equity ratio (1.36) than 75.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF 8.59
Altman-Z 4.79
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

  • A Current Ratio of 1.46 indicates that KO should not have too much problems paying 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.
  • KO has a Quick ratio of 1.25. This is in the better half of the industry: KO outperforms 78.79% of its industry peers.
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%.
  • KO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.00% yearly.
  • Looking at the last year, KO shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
  • KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.75% yearly.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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

  • Based on the Price/Earnings ratio of 25.54, the valuation of KO can be described as expensive.
  • KO's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of KO to the average of the S&P500 Index (27.47), we can say KO is valued inline with the index average.
  • A Price/Forward Earnings ratio of 23.05 indicates a rather expensive valuation of KO.
  • KO's Price/Forward Earnings ratio is in line with the industry average.
  • KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.62.
Industry RankSector Rank
PE 25.54
Fwd PE 23.05
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.
  • KO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 62.28
EV/EBITDA 23.37
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 an expensive valuation of the company.
  • The excellent profitability rating of KO may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)2.84
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 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)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.
  • KO's earnings are growing more than its dividend. This makes the dividend growth 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 (4/24/2026, 3:42:29 PM)

After market: 76.63 0 (0%)

76.63

+0.35 (+0.46%)

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 Cap329.83B
Revenue(TTM)47.94B
Net Income(TTM)13.11B
Analysts81.71
Price Target85.38 (11.42%)
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 25.54
Fwd PE 23.05
P/S 6.88
P/FCF 62.28
P/OCF 44.52
P/B 10.25
P/tB 79.53
EV/EBITDA 23.37
EPS(TTM)3
EY3.91%
EPS(NY)3.32
Fwd EY4.34%
FCF(TTM)1.23
FCFY1.61%
OCF(TTM)1.72
OCFY2.25%
SpS11.14
BVpS7.47
TBVpS0.96
PEG (NY)2.36
PEG (5Y)2.84
Graham Number22.4609 (-70.69%)
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 4.79
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 25.54 and the Price/Book (PB) ratio is 10.25.


Can you provide the financial health for KO stock?

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