Stock Analysis Report

Executive Summary

The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide.


Trading at 8.2% below its fair value

Earnings are forecast to grow 8.94% per year

Earnings grew by 33.4% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Snowflake Analysis

Proven track record average dividend payer.

Similar Companies

Share Price & News

How has Coca-Cola's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: KO has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




AT Beverage


AT Market

1 Year Return




AT Beverage


AT Market

Return vs Industry: KO exceeded the Austrian Beverage industry which returned 5.9% over the past year.

Return vs Market: KO exceeded the Austrian Market which returned 5.1% over the past year.

Shareholder returns

7 Day1.8%0.8%1.9%
30 Day7.3%-3.4%0.3%
90 Day14.6%-0.04%0.8%
1 Year40.1%35.8%8.0%5.9%8.8%5.1%
3 Yearn/a12.0%5.0%27.7%16.2%
5 Yearn/a21.8%9.0%56.9%35.2%

Price Volatility Vs. Market

How volatile is Coca-Cola's share price compared to the market and industry in the last 5 years?

Simply Wall St News

No news available


Is Coca-Cola undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KO (€55.12) is trading below our estimate of fair value (€60.07)

Significantly Below Fair Value: KO is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: KO is poor value based on its PE Ratio (28.7x) compared to the Beverage industry average (20.7x).

PE vs Market: KO is poor value based on its PE Ratio (28.7x) compared to the Austrian market (14.2x).

Price to Earnings Growth Ratio

PEG Ratio: KO is poor value based on its PEG Ratio (3.2x)

Price to Book Ratio

PB vs Industry: KO is overvalued based on its PB Ratio (13.5x) compared to the XE Beverage industry average (2.1x).

Next Steps

Future Growth

How is Coca-Cola forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KO's forecast earnings growth (8.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: KO's earnings (8.9% per year) are forecast to grow slower than the Austrian market (9.9% per year).

High Growth Earnings: KO's earnings are forecast to grow, but not significantly.

Revenue vs Market: KO's revenue (4.6% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: KO's revenue (4.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: KO's Return on Equity is forecast to be very high in 3 years time (56.2%).

Next Steps

Past Performance

How has Coca-Cola performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KO has high quality earnings.

Growing Profit Margin: KO's current net profit margins (23.9%) are higher than last year (21%).

Past Earnings Growth Analysis

Earnings Trend: KO's earnings have declined by -4.6% per year over the past 5 years.

Accelerating Growth: KO's earnings growth over the past year (33.4%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: KO earnings growth over the past year (33.4%) exceeded the Beverage industry 2.7%.

Return on Equity

High ROE: Whilst KO's Return on Equity (42.59%) is outstanding, this metric is skewed due to their high level of debt.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Coca-Cola's financial position?

Financial Position Analysis

Short Term Liabilities: KO's short term assets ($20.4B) do not cover its short term liabilities ($27.0B).

Long Term Liabilities: KO's short term assets ($20.4B) do not cover its long term liabilities ($38.3B).

Debt to Equity History and Analysis

Debt Level: KO's debt to equity ratio (196.4%) is considered high.

Reducing Debt: KO's debt to equity ratio has increased from 136.8% to 196.4% over the past 5 years.

Debt Coverage: KO's debt is well covered by operating cash flow (25.3%).

Interest Coverage: KO's interest payments on its debt are well covered by EBIT (27.5x coverage).

Balance Sheet

Inventory Level: KO has a low level of unsold assets or inventory.

Debt Coverage by Assets: KO's debt is not covered by short term assets (assets are 0.5x debt).

Next Steps


What is Coca-Cola's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: KO's dividend (2.67%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: KO's dividend (2.67%) is low compared to the top 25% of dividend payers in the Austrian market (4.47%).

Stability and Growth of Payments

Stable Dividend: KO's dividend payments have been volatile in the past 10 years.

Growing Dividend: KO's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.7%), KO's payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: KO's dividends in 3 years are forecast to be covered by earnings (70.8% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


James Robert Quincey (54yo)





Mr. James Robert B. Quincey has been Chief Executive Officer of The Coca-Cola Company since May 1, 2017 and its Chairman of the Board since April 24, 2019. Mr. Quincey served as President until January 1,  ...

CEO Compensation Analysis

Compensation vs Market: James Robert's total compensation ($USD16.70M) is above average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: James Robert's compensation has increased by more than 20% in the past year.

Leadership Team

James Robert Quincey
Chairman & CEO2.8yrsUS$16.70m0.0038% $9.0m
Brian Smith
President & COO1.1yrsUS$5.00m0.0024% $5.8m
John Murphy
Executive VP & CFO0.9yrsUS$5.93m0.0019% $4.4m
Mark Randazza
VP, Assistant Controller & Chief Accounting Officer0yrsno data0.00080% $1.9m
Barry Simpson
Senior VP3.3yrsno data0.000050% $118.3k
Timothy Leveridge
VP & Investor Relations Officer0yrsno datano data
Beatriz Perez
Senior VP and Chief Communications2.8yrsno data0.0022% $5.3m
Manuel Prieto
CMO & Group President of Asia Pacific0.08yrsno datano data
Lisa Chang
Chief People Officer & Senior VP0.9yrsno data0.00012% $284.0k
Curtis Ferguson
President of Greater China & Korea3.4yrsno datano data


Average Tenure


Average Age

Experienced Management: KO's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

James Robert Quincey
Chairman & CEO2.8yrsUS$16.70m0.0038% $9.0m
Zahi Khouri
Chairman of Palestinian National Beverage Company & CEO of Palestinian National Beverage Company0yrsno datano data
Barry Diller
Independent Director18.1yrsUS$271.05k0.093% $221.2m
Ronald Allen
Independent Director29.1yrsUS$272.74k0.00056% $1.3m
Maria Lagomasino
Lead Independent Director0.8yrsUS$277.65k0.00055% $1.3m
John Brock
Chairman of Coca-Cola Enterprises Inc11.8yrsno datano data
Alexis Herman
Independent Director12.3yrsUS$292.59k0.000050% $118.3k
Herbert Allen
Director38.1yrsUS$270.01k0.28% $669.0m
K. Chan
Chairman of Coca-Cola China Limited19.5yrsno datano data
Helene Gayle
Independent Director6.8yrsUS$250.11k0.000070% $165.7k


Average Tenure


Average Age

Experienced Board: KO's board of directors are seasoned and experienced ( 12.3 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: KO insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

The Coca-Cola Company's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: The Coca-Cola Company
  • Ticker: KO
  • Exchange: WBAG
  • Founded: 1886
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$256.586b
  • Listing Market Cap: US$236.649b
  • Shares outstanding: 4.28b
  • Website: https://www.coca-colacompany.com

Number of Employees


  • The Coca-Cola Company
  • One Coca-Cola Plaza
  • Atlanta
  • Georgia
  • 30313
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
KOBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
KOSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
CCC3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
KO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
CCC3XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
KOSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
COK-UETLX (Eurotlx)YesCommon StockITEURJan 1968
KOWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
US_KO__KAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTJan 1968
KOBASE (Buenos Aires Stock Exchange)CEDEARS EACH 5 REP 1 COM USD0.25ARARSFeb 2000
COCA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.25BRBRLJul 2011


The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant–based beverages; teas and coffees; and energy drinks. It also offers concentrates, syrups, beverage bases, source waters, and powders/minerals, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products primarily under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Schweppes, Sprite, Thums Up, Aquarius, Dasani, glacéau smartwater, glacéau vitaminwater, Ice Dew, I LOHAS, Powerade, AdeS, Del Valle, innocent, Minute Maid, Minute Maid Pulpy, Simply, ZICO, Ayataka, Costa, FUZE TEA, Georgia, Gold Peak, and HONEST TEA brands. The Coca-Cola Company offers its beverage products through a network of company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers. The company was founded in 1886 and is headquartered in Atlanta, Georgia. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:42
End of Day Share Price2020/02/14 00:00
Annual Earnings2019/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.