COCA-COLA CO/THE (KO) Stock Fundamental Analysis
USA - NYSE:KO - US1912161007 - Common Stock
66.27 USD
+0.06 (+0.09%)
Overall KO gets a fundamental rating of 5 out of 10. We evaluated KO against 32 industry peers in the Beverages industry. While KO belongs to the best of the industry regarding profitability, there are concerns on its financial health. KO is valied quite expensively at the moment, while it does show a decent growth rate.
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's Return On Assets of 11.68% is amongst the best of the industry. KO outperforms 90.63% of its industry peers.
KO's Return On Equity of 42.62% is amongst the best of the industry. KO outperforms 100.00% of its industry peers.
The Return On Invested Capital of KO (12.72%) is better than 71.88% of its industry peers.
KO had an Average Return On Invested Capital over the past 3 years of 11.98%. This is in line with the industry average of 11.08%.
The last Return On Invested Capital (12.72%) for KO is above the 3 year average (11.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 42.62% | ||
| ROIC | 12.72% |
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
KO has a Profit Margin of 25.89%. This is amongst the best in the industry. KO outperforms 100.00% of its industry peers.
KO's Profit Margin has been stable in the last couple of years.
KO has a better Operating Margin (28.59%) than 90.63% of its industry peers.
KO's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 61.43%, KO belongs to the best of the industry, outperforming 100.00% 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 | 28.59% | ||
| PM (TTM) | 25.89% | ||
| GM | 61.43% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KO is 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 has been increased compared to 5 years ago.
KO has a worse debt/assets ratio than last year.
2.2 Solvency
KO has an Altman-Z score of 4.24. This indicates that KO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.24, KO is doing good in the industry, outperforming 78.13% of the companies in the same industry.
A Debt/Equity ratio of 1.73 is on the high side and indicates that KO has dependencies on debt financing.
KO has a Debt to Equity ratio of 1.73. This is amonst the worse of the industry: KO underperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.24 |
ROIC/WACC1.6
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.21 indicates that KO should not have too much problems paying its short term obligations.
KO's Current ratio of 1.21 is in line compared to the rest of the industry. KO outperforms 46.88% of its industry peers.
A Quick Ratio of 0.98 indicates that KO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, KO is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
KO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.66%.
Measured over the past 5 years, KO shows a small growth in Earnings Per Share. The EPS has been growing by 6.42% on average per year.
The Revenue has been growing slightly by 1.28% in the past year.
Measured over the past years, KO shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
EPS 1Y (TTM)4.66%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%3.57%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%2.47%
3.2 Future
The Earnings Per Share is expected to grow by 6.99% on average over the next years.
The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y6.56%
EPS Next 2Y7.29%
EPS Next 3Y7.27%
EPS Next 5Y6.99%
Revenue Next Year4.93%
Revenue Next 2Y5.32%
Revenue Next 3Y5.31%
Revenue Next 5Y5.07%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KO is valuated rather expensively with a Price/Earnings ratio of 22.70.
Compared to the rest of the industry, the Price/Earnings ratio of KO is on the same level as its industry peers.
KO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.27.
Based on the Price/Forward Earnings ratio of 19.99, the valuation of KO can be described as rather expensive.
KO's Price/Forward Earnings is on the same level as the industry average.
KO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
KO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.38 |
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)3.46
PEG (5Y)3.54
EPS Next 2Y7.29%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, KO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.84, KO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, KO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of KO has a limited annual growth rate of 3.93%.
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)3.93%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
69.42% 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.
DP69.42%
EPS Next 2Y7.29%
EPS Next 3Y7.27%
NYSE:KO (9/16/2025, 9:42:05 AM)
66.27
+0.06 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.22%
Inst Owner Change-0.71%
Ins Owners0.57%
Ins Owner Change-0.65%
Market Cap285.20B
Analysts82.16
Price Target79.05 (19.28%)
Short Float %0.95%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend1.94
Dividend Growth(5Y)3.93%
DP69.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.39%
Min EPS beat(2)-0.7%
Max EPS beat(2)1.47%
EPS beat(4)3
Avg EPS beat(4)1.17%
Min EPS beat(4)-0.7%
Max EPS beat(4)3.5%
EPS beat(8)6
Avg EPS beat(8)0.9%
EPS beat(12)9
Avg EPS beat(12)1.43%
EPS beat(16)13
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-2.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)3.7%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)8
Avg Revenue beat(16)0.53%
PT rev (1m)-0.29%
PT rev (3m)-0.52%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 19.99 | ||
| P/S | 6.06 | ||
| P/FCF | N/A | ||
| P/OCF | 219.22 | ||
| P/B | 9.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.38 |
EPS(TTM)2.92
EY4.41%
EPS(NY)3.32
Fwd EY5%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.3
OCFY0.46%
SpS10.94
BVpS6.64
TBVpS-0.86
PEG (NY)3.46
PEG (5Y)3.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 42.62% | ||
| ROCE | 16.33% | ||
| ROIC | 12.72% | ||
| ROICexc | 15.23% | ||
| ROICexgc | 27.45% | ||
| OM | 28.59% | ||
| PM (TTM) | 25.89% | ||
| GM | 61.43% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y0.46%
ROICexcg 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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 185.6% | ||
| Cap/Sales | 4.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 8.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 4.24 |
F-Score6
WACC7.97%
ROIC/WACC1.6
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)4.66%
EPS 3Y7.32%
EPS 5Y6.42%
EPS Q2Q%3.57%
EPS Next Y6.56%
EPS Next 2Y7.29%
EPS Next 3Y7.27%
EPS Next 5Y6.99%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y6.78%
Revenue growth 5Y4.78%
Sales Q2Q%2.47%
Revenue Next Year4.93%
Revenue Next 2Y5.32%
Revenue Next 3Y5.31%
Revenue Next 5Y5.07%
EBIT growth 1Y19.36%
EBIT growth 3Y0.8%
EBIT growth 5Y1.13%
EBIT Next Year16.19%
EBIT Next 3Y9.52%
EBIT Next 5Y8.31%
FCF growth 1Y-107.61%
FCF growth 3Y-25.04%
FCF growth 5Y-10.85%
OCF growth 1Y-88.28%
OCF growth 3Y-18.62%
OCF growth 5Y-8.26%