NYSE:KO

Stock Analysis Report

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Market Cap

US$246.2b

Last Updated

2021/08/01 22:05 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: KO's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.03%

KO

-0.3%

US Beverage

-0.4%

US Market


1 Year Return

20.7%

KO

18.2%

US Beverage

35.9%

US Market

Return vs Industry: KO exceeded the US Beverage industry which returned 18.2% over the past year.

Return vs Market: KO underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

KOIndustryMarket
7 Day0.03%-0.3%-0.4%
30 Day5.3%2.8%-0.3%
90 Day4.7%1.9%3.1%
1 Year24.6%20.7%21.1%18.2%38.0%35.9%
3 Year34.8%22.3%38.6%28.2%62.9%52.7%
5 Year54.6%31.2%57.4%37.8%121.3%96.9%

Long-Term 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?

22.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KO ($57.03) is trading below our estimate of fair value ($74.01)

Significantly Below Fair Value: KO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KO is good value based on its PE Ratio (30.4x) compared to the US Beverage industry average (33.7x).

PE vs Market: KO is poor value based on its PE Ratio (30.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: KO is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: KO is overvalued based on its PB Ratio (11.1x) compared to the US Beverage industry average (4.7x).


Future Growth

How is Coca-Cola forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KO's forecast earnings growth (8.7% per year) is above the savings rate (2%).

Earnings vs Market: KO's earnings (8.7% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: KO's revenue (5.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: KO's revenue (5.4% 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 (50.9%).


Past Performance

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

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KO has high quality earnings.

Growing Profit Margin: KO's current net profit margins (22.2%) are lower than last year (26.6%).


Past Earnings Growth Analysis

Earnings Trend: KO's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: KO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KO had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the Beverage industry average (26.6%).


Return on Equity

High ROE: Whilst KO's Return on Equity (33.37%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Coca-Cola's financial position?


Financial Position Analysis

Short Term Liabilities: KO's short term assets ($22.5B) exceed its short term liabilities ($15.3B).

Long Term Liabilities: KO's short term assets ($22.5B) do not cover its long term liabilities ($50.6B).


Debt to Equity History and Analysis

Debt Level: KO's debt to equity ratio (166.7%) is considered high.

Reducing Debt: KO's debt to equity ratio has reduced from 180.4% to 166.7% over the past 5 years.

Debt Coverage: KO's debt is well covered by operating cash flow (31.1%).

Interest Coverage: KO's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

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

2.94%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 02 2021Ex Dividend DateSep 14 2021Dividend Pay DateOct 01 202117 days from Ex DividendBuy in the next 42 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: KO's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: KO's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (88.4%), 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 (69.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

James Robert Quincey (56 yo)

4.17yrs

Tenure

US$18,383,474

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 serves as Independent Director at Pfizer Inc. ...


CEO Compensation Analysis

Compensation vs Market: James Robert's total compensation ($USD18.38M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

Experienced Management: KO's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: KO's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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: NYSE
  • Founded: 1886
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$246.177b
  • Shares outstanding: 4.32b
  • Website: https://www.coca-colacompany.com

Number of Employees


Location

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

Listings


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 Analysis2021/08/01 22:05
End of Day Share Price2021/07/30 00:00
Earnings2021/07/02
Annual Earnings2020/12/31


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.