The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$54.06|
|52 Week High||US$47.30|
|52 Week Low||US$57.56|
|1 Month Change||-4.56%|
|3 Month Change||-0.92%|
|1 Year Change||10.12%|
|3 Year Change||17.34%|
|5 Year Change||28.56%|
|Change since IPO||1,008.92%|
Recent News & Updates
Coca-Cola: How To Juice An 8%+ Return In The Next 12 Months
We analyzed Coca-Cola's dividend using a few dividend coverage ratios and compared the findings with its closest peers. Warren Buffett was smart (and lucky) enough to invest in Coca-Cola at the time he did, but even today, we believe investors can still juice a decent total return. Although we like the company, Coca-Cola is not a core holding in our portfolio for reasons discussed in this analysis.
Thinking Of Buying Coca-Cola? Think Again
KO looks like it wants to break out. But I'm skeptical right now given a number of fundamental headwinds. With the valuation stretched, avoid KO.
Slowbalization Should Not Damage The Coca-Cola Company's (NYSE:KO) High ROE
While the market is looking up to the pre-pandemic key level of US$60, which has still not been recaptured, there are few if any positive catalysts on the horizon. If anything, the company is facing headwinds with supply chain issues. This article will examine those issues, as well as the current state of return on equity (ROE).
|KO||US Beverage||US Market|
Return vs Industry: KO underperformed the US Beverage industry which returned 13.4% over the past year.
Return vs Market: KO underperformed the US Market which returned 33.8% over the past year.
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.
About the Company
|1886||80,300||James Robert Quincey||https://www.coca-colacompany.com|
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; juice, dairy, and plant–based beverages; tea and coffee; and energy drinks. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores.
Coca-Cola Fundamentals Summary
|KO fundamental statistics|
Is KO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|KO income statement (TTM)|
|Cost of Revenue||US$14.34b|
Last Reported Earnings
Jul 02, 2021
Next Earnings Date
|Earnings per share (EPS)||1.88|
|Net Profit Margin||22.19%|
How did KO perform over the long term?See historical performance and comparison
3.1%Current Dividend Yield
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 ($54.06) is trading below our estimate of fair value ($74.5)
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 (28.9x) compared to the US Beverage industry average (32.4x).
PE vs Market: KO is poor value based on its PE Ratio (28.9x) compared to the US market (17.8x).
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 (10.5x) compared to the US Beverage industry average (5x).
How is Coca-Cola forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KO's forecast earnings growth (8.3% per year) is above the savings rate (2%).
Earnings vs Market: KO's earnings (8.3% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: KO's earnings are forecast to grow, but not significantly.
Revenue vs Market: KO's revenue (5.2% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: KO's revenue (5.2% 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 (51.8%).
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 (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 (37.8%).
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.
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 ($50.6B).
Debt to Equity History and Analysis
Debt Level: KO's debt to equity ratio (173.4%) is considered high.
Reducing Debt: KO's debt to equity ratio has reduced from 180.4% to 173.4% over the past 5 years.
Debt Coverage: KO's debt is well covered by operating cash flow (29.9%).
Interest Coverage: KO's interest payments on its debt are well covered by EBIT (6.3x coverage).
What is Coca-Cola current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KO's dividend (3.11%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: KO's dividend (3.11%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: KO's dividends per share have been stable in the past 10 years.
Growing Dividend: KO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (88.4%), KO's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KO's dividends in 3 years are forecast to be covered by earnings (69.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
James Robert Quincey (56 yo)
Mr. James Robert B. Quincey has been Chief Executive Officer of The Coca-Cola Company since May 1, 2017 and its Chairman of the Board since April 24, 2019. He serves as Independent Director at Pfizer Inc....
CEO Compensation Analysis
Compensation vs Market: James Robert's total compensation ($USD18.38M) is above average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: James Robert's compensation has been consistent with company performance over the past year.
Experienced Management: KO's management team is considered experienced (2.5 years average tenure).
Experienced Board: KO's board of directors are considered experienced (8.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Coca-Cola Company's employee growth, exchange listings and data sources
- Name: The Coca-Cola Company
- Ticker: KO
- Exchange: NYSE
- Founded: 1886
- Industry: Soft Drinks
- Sector: Food, Beverage & Tobacco
- Market Cap: US$234.997b
- Shares outstanding: 4.32b
- Website: https://www.coca-colacompany.com
Number of Employees
- The Coca-Cola Company
- One Coca-Cola Plaza
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/20 22:26|
|End of Day Share Price||2021/09/20 00:00|
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.