NYSE:KO

Stock Analysis Report

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Executive Summary

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. More Details


Snowflake Analysis

Solid track record established 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

1.3%

KO

-0.2%

US Beverage

-0.8%

US Market


1 Year Return

-5.7%

KO

1.7%

US Beverage

18.0%

US Market

Return vs Industry: KO underperformed the US Beverage industry which returned -0.3% over the past year.

Return vs Market: KO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

KOIndustryMarket
7 Day1.3%-0.2%-0.8%
30 Day5.1%4.9%6.8%
90 Day4.5%3.8%8.9%
1 Year-2.5%-5.7%4.4%1.7%20.7%18.0%
3 Year21.5%10.0%25.0%15.3%41.5%32.1%
5 Year41.0%19.7%46.4%28.2%84.6%63.8%

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

Valuation

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

1.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KO ($50.68) is trading below our estimate of fair value ($51.59)

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 good value based on its PE Ratio (23.6x) compared to the US Beverage industry average (31.6x).

PE vs Market: KO is poor value based on its PE Ratio (23.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: KO is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: KO is overvalued based on its PB Ratio (12.4x) compared to the US Beverage industry average (4.8x).


Next Steps

Future Growth

How is Coca-Cola forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KO's forecast earnings growth (5.7% per year) is above the savings rate (2.2%).

Earnings vs Market: KO's earnings (5.7% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: KO's revenue (8.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: KO's revenue (8.1% 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 (53.1%).


Next Steps

Past Performance

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

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KO has high quality earnings.

Growing Profit Margin: KO's current net profit margins (26.8%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: KO's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: KO's earnings growth over the past year (30.7%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: KO earnings growth over the past year (30.7%) exceeded the Beverage industry 17.5%.


Return on Equity

High ROE: Whilst KO's Return on Equity (47.99%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Coca-Cola's financial position?


Financial Position Analysis

Short Term Liabilities: KO's short term assets ($29.4B) exceed its short term liabilities ($26.8B).

Long Term Liabilities: KO's short term assets ($29.4B) do not cover its long term liabilities ($48.7B).


Debt to Equity History and Analysis

Debt Level: KO's debt to equity ratio (265.6%) is considered high.

Reducing Debt: KO's debt to equity ratio has increased from 155.1% to 265.6% over the past 5 years.

Debt Coverage: KO's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: KO's interest payments on its debt are well covered by EBIT (26.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.24%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: KO's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: KO's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: KO's dividends per share have been stable 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 (75.6%), 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 (69.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

James Robert Quincey (55 yo)

3.42yrs

Tenure

US$18,701,149

Compensation

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. He served as Independent Director at Pfizer Inc. ...


CEO Compensation Analysis

Compensation vs Market: James Robert's total compensation ($USD18.70M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: James Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Robert Quincey
Chairman & CEO3.42yrsUS$18.70m0.0061%
$ 13.3m
Brian Smith
President & COO1.75yrsUS$8.54m0.0030%
$ 6.6m
John Murphy
Executive VP & CFO1.58yrsUS$9.13m0.0021%
$ 4.6m
Manuel Prieto
CMO & Group President of Asia Pacific0.75yrUS$4.97mno data
James Dinkins
Senior Advisorno dataUS$4.78m0.0011%
$ 2.4m
Mark Randazza
VP, Assistant Controller & Chief Accounting Officerno datano data0.00093%
$ 2.0m
Nancy Quan
Senior VP & CTO1.75yrsno data0.0035%
$ 7.7m
Barry Simpson
Senior VP4yrsno data0.00033%
$ 718.4k
Timothy Leveridge
VP & Investor Relations Officerno datano datano data
Bradley Gayton
Senior VP & General Counsel0.083yrno datano data
Beatriz Perez
Senior VP and Chief Communications3.42yrsno data0.0025%
$ 5.5m
Lisa Chang
Chief People Officer & Senior VP1.58yrsno data0.00020%
$ 435.4k

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: KO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Robert Quincey
Chairman & CEO3.42yrsUS$18.70m0.0061%
$ 13.3m
Zahi Khouri
Chairman of Palestinian National Beverage Company & CEO of Palestinian National Beverage Companyno datano datano data
Robert Kotick
Independent Director8.67yrsUS$250.11k0.0016%
$ 3.5m
Barry Diller
Independent Director18.75yrsUS$270.94k0.093%
$ 202.7m
Maria Lagomasino
Lead Independent Director1.5yrsUS$307.79k0.00055%
$ 1.2m
John Brock
Chairman of Coca-Cola Enterprises Inc12.5yrsno datano data
Alexis Herman
Independent Director13yrsUS$306.34k0.000050%
$ 108.8k
Herbert Allen
Director38.75yrsUS$270.11k0.28%
$ 613.2m
K. Chan
Chairman of Coca-Cola China Limited20.17yrsno datano data
Helene Gayle
Independent Director7.5yrsUS$266.01k0.000070%
$ 152.4k
Ana Botín-Sanz de Sautuola y O'Shea
Independent Director7.25yrsUS$250.11k0.000060%
$ 130.6k
Krishnakumar Thirumalai
Chairman of Coca-Cola India0.083yrno datano data

8.7yrs

Average Tenure

64yo

Average Age

Experienced Board: KO's board of directors are considered experienced (8.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KO insiders have only sold shares 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: NYSE
  • Founded: 1886
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$217.693b
  • Shares outstanding: 4.30b
  • Website: https://www.coca-colacompany.com

Number of Employees


Location

  • The Coca-Cola Company
  • One Coca-Cola Plaza
  • Atlanta
  • Georgia
  • 30301
  • United States

Listings

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
919390SWX (SIX Swiss Exchange)YesCommon StockCHUSDJan 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

Biography

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, enhanced water, and sports drinks; j ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:40
End of Day Share Price2020/10/22 00:00
Earnings2020/06/26
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.