COCA-COLA CO/THE (KO)
US1912161007 - Common Stock
Overall KO gets a fundamental rating of 5 out of 10. We evaluated KO against 31 industry peers in the Beverages industry. While KO has a great profitability rating, there are quite some concerns on its financial health. KO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
In the past 5 years KO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KO (9.80%) is better than 74.19% of its industry peers.
The Return On Equity of KO (39.25%) is better than 90.32% of its industry peers.
With a decent Return On Invested Capital value of 14.08%, KO is doing good in the industry, outperforming 74.19% 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 13.16%.
The 3 year average ROIC (12.96%) for KO is below the current ROIC(14.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.8% | ||
| ROE | 39.25% | ||
| ROIC | 14.08% |
ROA(3y)10.54%
ROA(5y)10.16%
ROE(3y)41.12%
ROE(5y)42.1%
ROIC(3y)12.96%
ROIC(5y)12.39%
1.3 Margins
Looking at the Profit Margin, with a value of 22.45%, KO belongs to the top of the industry, outperforming 93.55% 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 29.50%. This is amongst the best in the industry. KO outperforms 96.77% of its industry peers.
In the last couple of years the Operating Margin of KO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 60.43%, KO belongs to the top of the industry, outperforming 96.77% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.5% | ||
| PM (TTM) | 22.45% | ||
| GM | 60.43% |
OM growth 3Y-0.91%
OM growth 5Y-0.63%
PM growth 3Y-0.07%
PM growth 5Y4.54%
GM growth 3Y0.12%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
KO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KO has been increased compared to 5 years ago.
Compared to 1 year ago, KO has a worse debt to assets ratio.
2.2 Solvency
KO has an Altman-Z score of 3.92. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
KO's Altman-Z score of 3.92 is fine compared to the rest of the industry. KO outperforms 67.74% of its industry peers.
The Debt to FCF ratio of KO is 13.56, which is on the high side as it means it would take KO, 13.56 years of fcf income to pay off all of its debts.
KO's Debt to FCF ratio of 13.56 is on the low side compared to the rest of the industry. KO is outperformed by 64.52% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that KO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.70, KO is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 13.56 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.71
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.06 indicates that KO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, KO is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
A Quick Ratio of 0.90 indicates that KO may have some problems paying its short term obligations.
The Quick ratio of KO (0.90) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.42%.
Measured over the past 5 years, KO shows a small growth in Earnings Per Share. The EPS has been growing by 5.18% on average per year.
KO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.97%.
KO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)6.42%
EPS 3Y11.32%
EPS 5Y5.18%
EPS Q2Q%4.05%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y11.49%
Revenue growth 5Y5.93%
Sales Q2Q%0.32%
3.2 Future
KO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.84% yearly.
Based on estimates for the next years, KO will show a small growth in Revenue. The Revenue will grow by 3.44% on average per year.
EPS Next Y9.26%
EPS Next 2Y6.74%
EPS Next 3Y6.91%
EPS Next 5Y6.84%
Revenue Next Year1.62%
Revenue Next 2Y2.75%
Revenue Next 3Y3.63%
Revenue Next 5Y3.44%
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 accelerating.
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 22.61.
KO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.96. KO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 20.80, KO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.82. KO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
KO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KO is more expensive than 61.29% of the companies in the same industry.
KO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.5 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)4.37
EPS Next 2Y6.74%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
KO has a Yearly Dividend Yield of 3.10%.
KO's Dividend Yield is a higher than the industry average which is at 2.99.
KO's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
The dividend of KO has a limited annual growth rate of 3.40%.
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)3.4%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
78.28% 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.
DP78.28%
EPS Next 2Y6.74%
EPS Next 3Y6.91%
COCA-COLA CO/THE
NYSE:KO (11/21/2024, 8:04:00 PM)
After market: 63.88 +0.12 (+0.19%)63.76
+0.77 (+1.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap274.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 20.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.44
PEG (5Y)4.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.8% | ||
| ROE | 39.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.5% | ||
| PM (TTM) | 22.45% | ||
| GM | 60.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.42%
EPS 3Y11.32%
EPS 5Y
EPS Q2Q%
EPS Next Y9.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.97%
Revenue growth 3Y11.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y