Coca-Cola
The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The last earnings update was 54 days ago. More info.
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KO Share Price and Events
7 Day Returns
1 Year Returns
KO Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Coca-Cola (KO) | 0.6% | 3.6% | 0.1% | 4.6% | 0.8% | 15.3% |
| US Beverage | -0.3% | 3.9% | 4.4% | 2.2% | 3.2% | 9.8% |
| US Market | 0.4% | 2.6% | 11% | 6.8% | 38.1% | 45.7% |
1 Year Return vs Industry and Market
- KO outperformed the Beverage industry which returned 2.2% over the past year.
- KO underperformed the Market in United States of America which returned 6.8% over the past year.
Value
Is Coca-Cola undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Coca-Cola
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Coca-Cola.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 20 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Beverage Unlevered Beta | Simply Wall St/ S&P Global | 0.61 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.605 (1 + (1- 21%) (21.72%)) |
0.805 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.81 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.805 * 5.96%) |
7.53% |
Discounted Cash Flow Calculation for NYSE:KO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Coca-Cola is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.53%) |
|
|---|---|---|---|
| 2019 | 6,696.90 | Analyst x6 | 6,227.97 |
| 2020 | 8,112.10 | Analyst x7 | 7,015.83 |
| 2021 | 8,436.03 | Analyst x4 | 6,785.10 |
| 2022 | 8,736.46 | Est @ 3.56% | 6,534.71 |
| 2023 | 9,025.80 | Est @ 3.31% | 6,278.41 |
| 2024 | 9,308.97 | Est @ 3.14% | 6,021.97 |
| 2025 | 9,589.64 | Est @ 3.02% | 5,769.16 |
| 2026 | 9,870.58 | Est @ 2.93% | 5,522.37 |
| 2027 | 10,153.84 | Est @ 2.87% | 5,283.06 |
| 2028 | 10,440.97 | Est @ 2.83% | 5,052.07 |
| Present value of next 10 years cash flows | $60,490.64 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $10,440.97 × (1 + 2.73%) ÷ (7.53% – 2.73%) |
$223,486.95 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $223,486.95 ÷ (1 + 7.53%)10 |
$108,138.51 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $60,490.64 + $108,138.51 |
$168,629.16 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $168,629.16 / 4,275.16 |
$39.44 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $39.44 |
| Current discount | Discount to share price of
$46.95
= -1 x ($46.95 - $39.44) / $39.44 |
-19% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Coca-Cola is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Coca-Cola's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Coca-Cola's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $1.57 |
| NYSE:KO Share Price ** | NYSE (2019-04-16) in USD | $46.95 |
| United States of America Beverage Industry PE Ratio | Median Figure of 16 Publicly-Listed Beverage Companies | 26.86x |
| United States of America Market PE Ratio | Median Figure of 3,072 Publicly-Listed Companies | 18.08x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Coca-Cola.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:KO Share Price ÷ EPS (both in USD) = 46.95 ÷ 1.57 |
29.91x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Coca-Cola is overvalued based on earnings compared to the US Beverage industry average.
- Coca-Cola is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Coca-Cola's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 29.91x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts |
11.5%per year |
| United States of America Beverage Industry PEG Ratio | Median Figure of 12 Publicly-Listed Beverage Companies | 2.54x |
| United States of America Market PEG Ratio | Median Figure of 2,107 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 29.91x ÷ 11.5% |
2.61x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Coca-Cola is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Coca-Cola's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $3.98 |
| NYSE:KO Share Price * | NYSE (2019-04-16) in USD | $46.95 |
| United States of America Beverage Industry PB Ratio | Median Figure of 28 Publicly-Listed Beverage Companies | 6.44x |
| United States of America Market PB Ratio | Median Figure of 5,176 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:KO Share Price ÷ Book Value per Share (both in USD) = 46.95 ÷ 3.98 |
11.8x |
* Primary Listing of Coca-Cola.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Coca-Cola is overvalued based on assets compared to the US Beverage industry average.
Value checks
We assess Coca-Cola's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check) Coca-Cola has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Coca-Cola expected to perform in the next 1 to 3 years based on estimates from 20 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Coca-Cola's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Coca-Cola's earnings growth is positive but not above the United States of America market average.
- Coca-Cola's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:KO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts | 11.5% |
| NYSE:KO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts | 5.2% |
| United States of America Beverage Industry Earnings Growth Rate | Market Cap Weighted Average | 4.5% |
| United States of America Beverage Industry Revenue Growth Rate | Market Cap Weighted Average | 4.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 41,682 | 2 | ||
| 2022-12-31 | 40,115 | 11,741 | 11,206 | 3 |
| 2021-12-31 | 37,810 | 10,287 | 10,340 | 13 |
| 2020-12-31 | 36,338 | 9,963 | 9,675 | 20 |
| 2019-12-31 | 34,782 | 8,881 | 8,941 | 19 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 31,856 | 7,627 | 6,685 |
| 2018-09-28 | 32,310 | 6,934 | 3,097 |
| 2018-06-29 | 33,143 | 6,450 | 2,163 |
| 2018-03-30 | 33,918 | 7,001 | 1,260 |
| 2017-12-31 | 35,410 | 7,041 | 1,147 |
| 2017-09-29 | 37,307 | 7,935 | 4,550 |
| 2017-06-30 | 38,862 | 8,318 | 4,149 |
| 2017-03-31 | 40,699 | 8,956 | 6,226 |
| 2016-12-31 | 41,863 | 8,792 | 6,527 |
| 2016-09-30 | 42,454 | 8,861 | 7,214 |
| 2016-07-01 | 43,248 | 9,230 | 7,617 |
| 2016-04-01 | 43,865 | 9,558 | 7,277 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
All data from Coca-Cola Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | 2.60 | 2.60 | 2.60 | 1.00 |
| 2021-12-31 | 2.44 | 2.53 | 2.35 | 5.00 |
| 2020-12-31 | 2.26 | 2.33 | 2.23 | 9.00 |
| 2019-12-31 | 2.09 | 2.10 | 2.08 | 8.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 1.57 |
| 2018-09-28 | 0.73 |
| 2018-06-29 | 0.51 |
| 2018-03-30 | 0.30 |
| 2017-12-31 | 0.27 |
| 2017-09-29 | 1.06 |
| 2017-06-30 | 0.97 |
| 2017-03-31 | 1.45 |
| 2016-12-31 | 1.51 |
| 2016-09-30 | 1.67 |
| 2016-07-01 | 1.76 |
| 2016-04-01 | 1.68 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Coca-Cola's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Coca-Cola has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Coca-Cola performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Coca-Cola's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Coca-Cola's 1-year earnings growth exceeds its 5-year average (482.8% vs -19.7%)
- Coca-Cola's earnings growth has exceeded the US Beverage industry average in the past year (482.8% vs 4.5%).
Earnings and Revenue History
All data from Coca-Cola Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 31,856.00 | 6,685.00 | 10,561.00 | |
| 2018-09-28 | 32,310.00 | 3,097.00 | 10,431.00 | |
| 2018-06-29 | 33,143.00 | 2,163.00 | 11,257.00 | |
| 2018-03-30 | 33,918.00 | 1,260.00 | 11,685.00 | |
| 2017-12-31 | 35,410.00 | 1,147.00 | 12,827.00 | |
| 2017-09-29 | 37,307.00 | 4,550.00 | 13,240.00 | |
| 2017-06-30 | 38,862.00 | 4,149.00 | 14,061.00 | |
| 2017-03-31 | 40,699.00 | 6,226.00 | 14,853.00 | |
| 2016-12-31 | 41,863.00 | 6,527.00 | 15,401.00 | |
| 2016-09-30 | 42,454.00 | 7,214.00 | 15,619.00 | |
| 2016-07-01 | 43,248.00 | 7,617.00 | 15,817.00 | |
| 2016-04-01 | 43,865.00 | 7,277.00 | 16,109.00 | |
| 2015-12-31 | 44,294.00 | 7,351.00 | 16,427.00 | |
| 2015-10-02 | 45,166.00 | 6,884.00 | 16,828.00 | |
| 2015-07-03 | 45,715.00 | 7,549.00 | 17,128.00 | |
| 2015-04-03 | 46,133.00 | 7,036.00 | 17,308.00 | |
| 2014-12-31 | 45,998.00 | 7,098.00 | 17,218.00 | |
| 2014-09-26 | 46,166.00 | 8,038.00 | 17,199.00 | |
| 2014-06-27 | 46,220.00 | 8,371.00 | 17,116.00 | |
| 2014-03-28 | 46,395.00 | 8,452.00 | 17,117.00 | |
| 2013-12-31 | 46,854.00 | 8,584.00 | 17,310.00 | |
| 2013-09-27 | 47,269.00 | 8,740.00 | 17,421.00 | |
| 2013-06-28 | 47,579.00 | 8,604.00 | 17,627.00 | |
| 2013-03-29 | 47,915.00 | 8,716.00 | 17,739.00 | |
| 2012-12-31 | 48,017.00 | 9,019.00 | 17,738.00 | |
| 2012-09-28 | 47,602.00 | 8,810.00 | 17,714.00 | |
| 2012-06-29 | 47,510.00 | 8,723.00 | 17,607.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Coca-Cola has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
- Coca-Cola used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.
- Coca-Cola has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Coca-Cola's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Coca-Cola has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Coca-Cola's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Coca-Cola's finances.
The net worth of a company is the difference between its assets and liabilities.
- Coca-Cola is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Coca-Cola's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Coca-Cola Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 19,058.00 | 43,595.00 | 15,964.00 |
| 2018-09-28 | 20,178.00 | 44,905.00 | 18,847.00 |
| 2018-06-29 | 20,176.00 | 46,852.00 | 19,354.00 |
| 2018-03-30 | 21,617.00 | 48,993.00 | 21,373.00 |
| 2017-12-31 | 18,977.00 | 47,724.00 | 20,675.00 |
| 2017-09-29 | 22,152.00 | 49,167.00 | 27,357.00 |
| 2017-06-30 | 22,089.00 | 49,720.00 | 27,224.00 |
| 2017-03-31 | 23,067.00 | 47,545.00 | 25,205.00 |
| 2016-12-31 | 23,220.00 | 45,757.00 | 22,201.00 |
| 2016-09-30 | 26,245.00 | 47,393.00 | 25,589.00 |
| 2016-07-01 | 26,838.00 | 48,417.00 | 24,078.00 |
| 2016-04-01 | 25,129.00 | 47,108.00 | 22,226.00 |
| 2015-12-31 | 25,764.00 | 44,401.00 | 19,920.00 |
| 2015-10-02 | 26,267.00 | 46,465.00 | 22,798.00 |
| 2015-07-03 | 28,641.00 | 44,553.00 | 20,953.00 |
| 2015-04-03 | 29,078.00 | 42,681.00 | 20,057.00 |
| 2014-12-31 | 30,561.00 | 41,782.00 | 21,689.00 |
| 2014-09-26 | 33,669.00 | 41,817.00 | 23,738.00 |
| 2014-06-27 | 34,301.00 | 40,247.00 | 21,612.00 |
| 2014-03-28 | 32,922.00 | 38,444.00 | 19,436.00 |
| 2013-12-31 | 33,440.00 | 37,082.00 | 20,268.00 |
| 2013-09-27 | 32,465.00 | 36,210.00 | 20,506.00 |
| 2013-06-28 | 32,631.00 | 35,689.00 | 19,265.00 |
| 2013-03-29 | 32,894.00 | 35,125.00 | 18,438.00 |
| 2012-12-31 | 33,168.00 | 32,616.00 | 16,558.00 |
| 2012-09-28 | 33,590.00 | 32,741.00 | 18,084.00 |
| 2012-06-29 | 32,629.00 | 32,482.00 | 16,966.00 |
- Coca-Cola's level of debt (228.7%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (111% vs 228.7% today).
- Debt is not well covered by operating cash flow (17.5%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 40.1x coverage).
Financial health checks
We assess Coca-Cola's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Coca-Cola has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Coca-Cola's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Coca-Cola
shares you are expected to receive
$68
in your first year as a dividend.
Dividend Amount
- Coca-Cola's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
- Coca-Cola's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| United States of America Beverage Industry Average Dividend Yield | Market Cap Weighted Average of 10 Stocks | 2.9% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 2.01 | 1.00 |
| 2022-12-31 | 1.90 | 2.00 |
| 2021-12-31 | 1.82 | 13.00 |
| 2020-12-31 | 1.71 | 18.00 |
| 2019-12-31 | 1.63 | 19.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-21 | 1.600 | 3.483 |
| 2018-10-18 | 1.560 | 3.248 |
| 2018-07-19 | 1.560 | 3.400 |
| 2018-04-26 | 1.560 | 3.605 |
| 2018-02-15 | 1.560 | 3.567 |
| 2017-10-19 | 1.480 | 3.217 |
| 2017-07-20 | 1.480 | 3.236 |
| 2017-04-27 | 1.480 | 3.316 |
| 2017-02-16 | 1.480 | 3.493 |
| 2016-10-20 | 1.400 | 3.375 |
| 2016-07-21 | 1.400 | 3.254 |
| 2016-04-28 | 1.400 | 3.108 |
| 2016-02-18 | 1.400 | 3.102 |
| 2015-10-15 | 1.320 | 3.103 |
| 2015-07-16 | 1.320 | 3.283 |
| 2015-04-30 | 1.320 | 3.255 |
| 2015-02-19 | 1.320 | 3.217 |
| 2014-10-16 | 1.220 | 2.876 |
| 2014-07-15 | 1.220 | 2.934 |
| 2014-04-24 | 1.220 | 2.962 |
| 2014-02-20 | 1.220 | 3.154 |
| 2013-10-17 | 1.120 | 2.838 |
| 2013-07-18 | 1.120 | 2.879 |
| 2013-04-25 | 1.120 | 2.716 |
| 2013-02-21 | 1.120 | 2.798 |
| 2012-10-18 | 1.020 | 2.738 |
| 2012-07-30 | 1.020 | 2.645 |
| 2012-04-26 | 1.020 | 2.673 |
| 2012-02-16 | 1.020 | 2.859 |
| 2011-10-20 | 0.940 | 2.773 |
| 2011-07-21 | 0.940 | 2.758 |
| 2011-04-28 | 0.940 | 2.806 |
| 2011-02-17 | 0.940 | 2.867 |
| 2010-10-21 | 0.880 | 2.775 |
| 2010-07-22 | 0.880 | 3.068 |
| 2010-04-22 | 0.880 | 3.366 |
| 2010-02-18 | 0.880 | 3.234 |
| 2009-10-22 | 0.820 | 2.935 |
| 2009-07-23 | 0.820 | 3.201 |
| 2009-04-23 | 0.820 | 3.489 |
| 2009-04-17 | 0.820 | 3.758 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Coca-Cola's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are not well covered by earnings (1x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
Income/ dividend checks
We assess Coca-Cola's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Coca-Cola afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Coca-Cola has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $16,701,328 |
| AGE | 53 |
| TENURE AS CEO | 1.9 years |
CEO Bio
Mr. James Robert B. Quincey has been Chief Executive Officer of The Coca-Cola Company since May 1, 2017. Mr. Quincey served as President until January 1, 2019 and served as its Chief Operating Officer of The Coca-Cola Company since August 13, 2015 until May 1, 2017. Mr. Quincey served as the Chief Operating Officer of The Coca-Cola Company since August 13, 2015 until May 1, 2017. Mr. Quincey served as the President of Europe Group at The Coca-Cola Company and Coca Cola International Corp. from January 1, 2013 to August 2015. He served as the President of the Northwest Europe and Nordics Business Unit at The Coca-Cola Company since January 1, 2013. He served as the President of Northwest Europe & Nordics Business Unit at The Coca-Cola Company until January 1, 2013. He served as the President of Mexico Division of Coca-Cola Co since December 2005 until 2008 and also served as its President of South Latin Division since December 2003. Mr. Quincey joined Coca-Cola Company in Atlanta in 1996 as Director of Learning Strategy of the Latin America Group until he moved to Mexico as deputy to the Division President in April 1999. He served as a Region Manager of Argentina & Uruguay since 2000 and then also served as a General Manager of the South Cone region (Argentina, Chile, Uruguay & Paraguay) since January 2003. Prior to joining Coca-Cola Company, he served for The Kalchas Group, as a Partner in strategy consulting. He has been a Director of The Coca-Cola Company since April 26, 2017. He served as a Director of Embotelladora Andina S.A., since April 2006. Mr. Quincey holds a Bachelor's degree in Electronic Engineering from the University of Liverpool and is an Electronic Engineer.
CEO Compensation
- James Robert's compensation has increased by more than 20% in the past year.
- James Robert's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Coca-Cola management team in years:
- The average tenure for the Coca-Cola management team is less than 2 years, this suggests a new team.
Management Team
James Robert Quincey
CEO & Director
$17M
53
1.9 yrs
Brian Smith
President & COO
$5M
63
0.3 yrs
John Murphy
Executive VP & CFO
$6M
56
0.1 yrs
Mark Randazza
VP, Assistant Controller & Chief Accounting Officer
52
Barry Simpson
Senior VP
58
2.5 yrs
Tim Leveridge
VP & Investor Relations Officer
48
Bernhard Goepelt
Senior VP
55
7.3 yrs
Beatriz Perez
Senior VP and Chief Communications
48
1.9 yrs
Lisa Chang
Chief People Officer
0.1 yrs
Francisco Xavier Benítez
Senior VP & Chief Growth Officer
53
1.9 yrs
Board of Directors Tenure
Average tenure and age of the Coca-Cola board of directors in years:
- The average tenure for the Coca-Cola board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Muhtar Kent
Chairman of the Board
$10M
65
10 yrs
James Robert Quincey
CEO & Director
$17M
53
2 yrs
Steve Chan
Chairman of Coca-Cola China Limited
61
18.7 yrs
Zahi Khouri
Chairman of Palestinian National Beverage Company & CEO of Palestinian National Beverage Company
John Brock
Chairman of Coca-Cola Enterprises Inc
69
11 yrs
Ron Allen
Independent Director
$273K
76
28.3 yrs
Sam Nunn
Lead Independent Director
$308K
79
5 yrs
Barry Diller
Director
$271K
76
17.3 yrs
Mel Lagomasino
Director
$278K
69
10.5 yrs
Herb Allen
Director
$270K
78
37.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Coca-Cola's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Coca-Cola has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
The Coca-Cola Company (NYSE:KO): Is It A Good Long Term Opportunity?
The Coca-Cola Company's (NYSE:KO) latest earnings announcement in December 2018a … signalled … business
Simply Wall St - – Full articleIs The Coca-Cola Company (NYSE:KO) A Smart Pick For Income Investors?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, The Coca-Cola Company (NYSE:KO) has been paying a dividend to shareholders. … Does Coca-Cola tick all the boxes of a great dividend stock?
Simply Wall St - – Full articleThe Coca-Cola Company (NYSE:KO): What We Can Expect From This Growth Stock
As The Coca-Cola Company (NYSE:KO) released its earnings announcement on 31 December 2018, … as a 34% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of -20%.
Simply Wall St - – Full articleThe Coca-Cola Company (NYSE:KO) Is Employing Capital Very Effectively
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleShould You Consider The Coca-Cola Company (NYSE:KO)?
Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … In the case of The Coca-Cola Company (NYSE:KO), there's
Simply Wall St - – Full articleHow Good Is The Coca-Cola Company (NYSE:KO), When It Comes To ROE?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of The Coca-Cola Company (NYSE:KO). … That means that for every $1 worth of shareholders' equity, it generated $0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleDo Institutions Own The Coca-Cola Company (NYSE:KO) Shares?
Generally speaking, as a company grows, institutions will increase their ownership. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at the our data on the ownership groups (below), it's seems that.
Simply Wall St - – Full articleThe Coca-Cola Company (NYSE:KO) Investors Are Paying Above The Intrinsic Value
Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of The Coca-Cola Company (NYSE:KO) as an investment opportunity. … by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF).
Simply Wall St - – Full articleThe Coca-Cola Company (NYSE:KO)'s Return on Capital
Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Coca-Cola’s capital returns we will look at a useful metric called return on capital employed.
Simply Wall St - – Full articleShould We Worry About The Coca-Cola Company's (NYSE:KO) P/E Ratio?
We'll look at The Coca-Cola Company's (NYSE:KO) P/E ratio and reflect on what it tells us about the company's share price. … Coca-Cola has a price to earnings ratio of 90.48, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | The Coca-Cola Company |
| KO | |
| Exchange: | NYSE |
| Founded: | 1886 |
| $200,718,820,875 | |
| 4,275,161,254 | |
| Website: | http://www.coca-colacompany.com |
| Address: |
The Coca-Cola Company One Coca-Cola Plaza, Atlanta, Georgia, 30313, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | KO | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | CCC3 | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| XTRA | CCC3 | Common Stock | XETRA Trading Platform | DE | EUR | 02. Jan 1968 | |
| SWX | KO | Common Stock | SIX Swiss Exchange | CH | CHF | 02. Jan 1968 | |
| WBAG | KO | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 | |
| SNSE | KO | Common Stock | Santiago Stock Exchange | CL | USD | 02. Jan 1968 | |
| BMV | KO * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1968 | |
| BVL | KO | Common Stock | Bolsa de Valores de Lima | PE | USD | 02. Jan 1968 | |
| BOVESPA | COCA34 | BDR EACH REPR 1 COM USD0.25 | Bolsa de Valores de Sao Paulo | BR | BRL | 25. Jul 2011 | |
| BASE | KO | CEDEARS EACH 5 REP 1 COM USD0.25 | Buenos Aires Stock Exchange | AR | ARS | 17. Feb 2000 |
Number of employees
Current staff
Industry
| Soft Drinks | |
| Food, Beverage & Tobacco |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/16 23:35 |
| End of day share price update: | 2019/04/16 00:00 |
| Last estimates confirmation: | 2019/04/16 |
| Last earnings filing: | 2019/02/21 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
