COCA-COLA CO/THE (KO) Stock Fundamental Analysis

NYSE:KO • US1912161007

81.56 USD
+1.06 (+1.32%)
At close: Feb 27, 2026
81.77 USD
+0.21 (+0.26%)
After Hours: 2/27/2026, 8:14:53 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to KO. KO was compared to 33 industry peers in the Beverages industry. KO has an excellent profitability rating, but there are some minor concerns on its financial health. KO is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

9

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.
  • KO had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of KO (12.50%) is better than 84.85% of its industry peers.
  • KO has a Return On Equity of 40.74%. This is amongst the best in the industry. KO outperforms 96.97% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 13.42%, KO belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for KO is in line with the industry average of 11.72%.
  • 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.
  • KO's Profit Margin has improved in the last couple of years.
  • KO's Operating Margin of 29.13% is amongst the best of the industry. KO outperforms 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. 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.
  • The number of shares outstanding for KO remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for KO remains at a similar level compared to 5 years ago.
  • KO has a better debt/assets ratio than last year.
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 4.94. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
  • KO's Altman-Z score of 4.94 is amongst the best of the industry. KO outperforms 84.85% of its industry peers.
  • 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 of 8.59. This is comparable to the rest of the industry: KO outperforms 48.48% of its industry peers.
  • KO has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external 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 4.94
ROIC/WACC1.65
WACC8.14%
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.
  • 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. Growth

3.1 Past

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

  • Based on estimates for the next years, KO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.13% on average per year.
  • 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

  • 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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2

4. Valuation

4.1 Price/Earnings Ratio

  • KO is valuated quite expensively with a Price/Earnings ratio of 27.19.
  • The rest of the industry has a similar Price/Earnings ratio as KO.
  • KO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
  • KO is valuated rather expensively with a Price/Forward Earnings ratio of 24.59.
  • KO's Price/Forward Earnings is on the same level as the industry average.
  • KO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 27.19
Fwd PE 24.59
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KO indicates a slightly more expensive valuation: KO is more expensive than 60.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 66.25
EV/EBITDA 24.57
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)2.57
PEG (5Y)3.02
EPS Next 2Y8.99%
EPS Next 3Y8.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • KO has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
  • KO's Dividend Yield is a higher than the industry average which is at 1.75.
  • KO's Dividend Yield is a higher than the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.56%

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 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 2Y8.99%
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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COCA-COLA CO/THE

NYSE:KO (2/27/2026, 8:14:53 PM)

After market: 81.77 +0.21 (+0.26%)

81.56

+1.06 (+1.32%)

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 Change0.46%
Ins Owners0.57%
Ins Owner Change-0.65%
Market Cap350.84B
Revenue(TTM)47.94B
Net Income(TTM)13.11B
Analysts82.29
Price Target80.56 (-1.23%)
Short Float %0.87%
Short Ratio1.85
Dividend
Industry RankSector Rank
Dividend Yield 2.56%
Yearly Dividend2.04
Dividend Growth(5Y)4.44%
DP66.98%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0.58%
PT rev (3m)1.45%
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 27.19
Fwd PE 24.59
P/S 7.32
P/FCF 66.25
P/OCF 47.36
P/B 10.91
P/tB 84.6
EV/EBITDA 24.57
EPS(TTM)3
EY3.68%
EPS(NY)3.32
Fwd EY4.07%
FCF(TTM)1.23
FCFY1.51%
OCF(TTM)1.72
OCFY2.11%
SpS11.14
BVpS7.48
TBVpS0.96
PEG (NY)2.57
PEG (5Y)3.02
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 4.94
F-Score7
WACC8.14%
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 Year15.48%
EBIT Next 3Y9.67%
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 27.19 and the Price/Book (PB) ratio is 10.91.


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%.