NYSE:KO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record second-rate 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


Market Performance


7 Day Return

-0.6%

KO

-0.2%

US Beverage

2.3%

US Market


1 Year Return

16.6%

KO

15.3%

US Beverage

5.6%

US Market

Return vs Industry: KO exceeded the US Beverage industry which returned 15.3% over the past year.

Return vs Market: KO exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

KOIndustryMarket
7 Day-0.6%-0.2%2.3%
30 Day-0.9%-0.5%-1.0%
90 Day2.8%1.6%-0.7%
1 Year20.4%16.6%18.3%15.3%7.9%5.6%
3 Year40.5%27.2%32.7%22.5%45.6%36.3%
5 Year54.9%31.7%58.7%38.6%65.8%47.6%

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?

31.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: KO ($53.49) is trading above our estimate of fair value ($50.15)

Significantly Undervalued: KO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KO is good value based on its PE Ratio (31.3x) compared to the Beverage industry average (31.3x).

PE vs Market: KO is poor value based on its PE Ratio (31.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: KO is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: KO is overvalued based on its PB Ratio (12.6x) compared to the US Beverage industry average (5x).


Next Steps

Future Growth

How is Coca-Cola forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KO's forecast earnings growth (10.6% per year) is above the savings rate (2.7%).

Earnings vs Market: KO's earnings (10.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: KO's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KO's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KO's Return on Equity is forecast to be very high in 3 years time (53.2%).


Next Steps

Past Performance

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

-13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KO's earnings have declined by -13.2% per year over the past 5 years.

Accelerating Growth: KO's earnings growth over the past year (221.3%) exceeds its 5-year average (-13.2% per year).

Earnings vs Industry: KO earnings growth over the past year (221.3%) exceeded the Beverage industry -1.9%.


Return on Equity

High ROE: Whilst KO's Return on Equity (36.1%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: KO has a higher Return on Assets than the Beverage industry average last year.


Return on Capital Employed

ROCE Improving: KO has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Coca-Cola's financial position?


Financial Position Analysis

Short Term Liabilities: KO's short term assets ($24.4B) do not cover its short term liabilities ($29.4B)

Long Term Liabilities: KO's short term assets (24.4B) do not cover its long term liabilities (40.3B)


Debt to Equity History and Analysis

Debt Level: KO's debt to equity ratio (222.2%) is considered high

Reducing Debt: KO's debt to equity ratio has increased from 117.5% to 222.2% over the past 5 years.

Debt Coverage: KO's debt is well covered by operating cash flow (20.9%).

Interest Coverage: KO's interest payments on its debt are well covered by EBIT (31.5x 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

Dividend

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

2.99%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.7%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KO's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: KO's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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: With its high payout ratio (92.5%), KO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KO's dividends in 3 years are forecast to be covered by earnings (74.5% payout ratio).


Next Steps

Management

What is the CEO of Coca-Cola's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

James Robert Quincey (54yo)

2.4yrs

Tenure

US$16,701,328

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. Mr. Quincey served as President until January 1,  ...


CEO Compensation Analysis

Compensation vs. Market: James Robert has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.4yrs

Average Tenure

54yo

Average Age

Experienced Management: KO's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

12.0yrs

Average Tenure

70yo

Average Age

Experienced Board: KO's board of directors are seasoned and experienced ( 12 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$26,61815 Aug 19
Lisa Chang
EntityIndividual
Role
Head of Human Resources
Chief People Officer & Senior VP
Shares500
Max PriceUS$53.24
SellUS$1,118,30815 May 19
Nancy Quan
EntityIndividual
Shares23,320
Max PriceUS$47.95

Ownership Breakdown


Management Team

  • Brian Smith (64yo)

    President & COO

    • Tenure: 0.8yrs
    • Compensation: US$5.00m
  • John Murphy (57yo)

    Executive VP & CFO

    • Tenure: 0.6yrs
    • Compensation: US$5.93m
  • James Robert Quincey (54yo)

    Chairman & CEO

    • Tenure: 2.4yrs
    • Compensation: US$16.70m
  • Francisco Xavier Benítez (54yo)

    Senior VP & Chief Growth Officer

    • Tenure: 2.4yrs
  • Beatriz Perez (49yo)

    Senior VP and Chief Communications

    • Tenure: 2.4yrs
  • Bernhard Goepelt (56yo)

    Senior VP

    • Tenure: 7.8yrs
  • Barry Simpson (59yo)

    Senior VP

    • Tenure: 3yrs
  • Mark Randazza (53yo)

    VP, Assistant Controller & Chief Accounting Officer

    • Tenure: 0yrs
  • Tim Leveridge (49yo)

    VP & Investor Relations Officer

    • Tenure: 0yrs
  • Lisa Chang

    Chief People Officer & Senior VP

    • Tenure: 0.6yrs

Board Members

  • Barry Diller (77yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$271.05k
  • Ron Allen (77yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$272.74k
  • Mel Lagomasino (70yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$277.65k
  • John Brock (70yo)

    Chairman of Coca-Cola Enterprises Inc

    • Tenure: 11.5yrs
  • Alexis Herman (71yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$292.59k
  • Herb Allen (79yo)

    Director

    • Tenure: 37.8yrs
    • Compensation: US$270.01k
  • Steve Chan (62yo)

    Chairman of Coca-Cola China Limited

    • Tenure: 19.2yrs
  • Helene Gayle (63yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$250.11k
  • James Robert Quincey (54yo)

    Chairman & CEO

    • Tenure: 2.4yrs
    • Compensation: US$16.70m
  • Zahi Khouri

    Chairman of Palestinian National Beverage Company & CEO of Palestinian National Beverage Company

    • Tenure: 0yrs

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$228.725b
  • Shares outstanding: 4.28b
  • Website: https://www.coca-colacompany.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
KONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
KOSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
KOWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
CCC3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
KOBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
CCC3XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
KOSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 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 and distributes various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, enhanced water, and sports drinks; juice ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:33
End of Day Share Price2019/10/16 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


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.