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Coca-Cola

NYSE:KO
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KO
NYSE
$214B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The last earnings update was 20 days ago. More info.


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KO Share Price and Events
7 Day Returns
0.6%
NYSE:KO
0.2%
US Beverage
-3.4%
US Market
1 Year Returns
10.4%
NYSE:KO
2.2%
US Beverage
10%
US Market
KO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Coca-Cola (KO) 0.6% 8.3% 8.5% 10.4% 16.8% 24.3%
US Beverage 0.2% 8.8% 4% 2.2% 23.9% 59.3%
US Market -3.4% -0.6% -4.3% 10% 55.8% 96.7%
1 Year Return vs Industry and Market
  • KO outperformed the Beverage industry which returned 2.2% over the past year.
Price Volatility
KO
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Coca-Cola.

NYSE:KO Discounted Cash Flow Data Sources
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 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:KO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.592 (1 + (1- 21%) (21.03%))
0.691
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%)
8.59%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:KO DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 8,313.81 9,014.95 8,907.00 10,446.00 9,661.46
Source Analyst x8 Analyst x8 Analyst x2 Analyst x1 Est @ -7.51%
Present Value
Discounted (@ 8.59%)
7,656.15 7,645.11 6,956.04 7,512.61 6,398.73
Present value of next 5 years cash flows $36,168.63
NYSE:KO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $9,661.46 × (1 + 2.95%) ÷ (8.59% – 2.95%)
$176,355.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $176,355.96 ÷ (1 + 8.59%)5
$116,799.50
NYSE:KO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $36,168.63 + $116,799.50
$152,968.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $152,968.13 / 4,256.51
$35.94
NYSE:KO Discount to Share Price
Calculation Result
Value per share (USD) From above. $35.94
Current discount Discount to share price of $50.17
= -1 x ($50.17 - $35.94) / $35.94
-39.6%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:KO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-28) in USD $0.73
NYSE:KO Share Price ** NYSE (2018-11-16) in USD $50.17
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 26.07x
United States of America Market PE Ratio Median Figure of 2,977 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Coca-Cola.

NYSE:KO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KO Share Price ÷ EPS (both in USD)

= 50.17 ÷ 0.73

69x

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?
Raw Data
NYSE:KO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
24.6%per year
United States of America Beverage Industry PEG Ratio Median Figure of 11 Publicly-Listed Beverage Companies 2.26x
United States of America Market PEG Ratio Median Figure of 2,096 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

NYSE:KO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 69x ÷ 24.6%

2.8x

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?
Raw Data
NYSE:KO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-28) in USD $4.29
NYSE:KO Share Price * NYSE (2018-11-16) in USD $50.17
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 7.06x
United States of America Market PB Ratio Median Figure of 4,980 Publicly-Listed Companies 1.85x
NYSE:KO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KO Share Price ÷ Book Value per Share (both in USD)

= 50.17 ÷ 4.29

11.69x

* 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.
X
Value checks
We assess Coca-Cola's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
24.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Coca-Cola expected to grow at an attractive rate?
  • Coca-Cola's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Coca-Cola's earnings growth is expected to exceed 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
Raw Data
NYSE:KO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 24.6%
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 16.2%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NYSE:KO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 41,247 1
2021-12-31 37,849 10,105 2
2020-12-31 34,972 10,199 10,638 14
2019-12-31 33,116 9,728 9,755 19
2018-12-31 31,849 7,966 7,960 18
NYSE:KO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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 7,106 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 8,796 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
2015-12-31 44,294 10,528 7,351
2015-10-02 45,166 11,026 6,884

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Coca-Cola's earnings are expected to grow significantly at over 20% yearly.
  • Coca-Cola's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month 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 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 2.03 2.03 2.03 1.00
2020-12-31 2.33 2.46 1.94 5.00
2019-12-31 2.19 2.28 1.86 9.00
2018-12-31 1.80 1.99 1.63 8.00
NYSE:KO Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-31 1.69
2015-10-02 1.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Coca-Cola is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Coca-Cola's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Coca-Cola has a total score of 4/6, 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
Below we compare Coca-Cola's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Coca-Cola's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Coca-Cola's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Coca-Cola's 1-year earnings growth is negative, it can't be compared to the US Beverage industry average.
Earnings and Revenue History
Coca-Cola's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Coca-Cola Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
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 12,496.00
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 15,262.00
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
2012-03-30 47,162.00 8,735.00 17,527.00
2011-12-31 46,542.00 8,584.00 17,422.00

*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.
  • Coca-Cola has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Coca-Cola used its assets less 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).
X
Past performance checks
We assess Coca-Cola's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Coca-Cola has a total score of 1/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Coca-Cola's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Coca-Cola Company Filings, last reported 1 month ago.

NYSE:KO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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 47,754.00 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 45,801.00 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
2012-03-30 33,218.00 31,117.00 15,779.00
2011-12-31 31,921.00 28,568.00 14,035.00
  • Coca-Cola's level of debt (222.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (111.5% vs 222.5% today).
  • Debt is not well covered by operating cash flow (15.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 78.9x coverage).
X
Financial health checks
We assess Coca-Cola's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Coca-Cola has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
3.11%
Current annual income from Coca-Cola dividends. Estimated to be 3.29% next year.
If you bought $2,000 of Coca-Cola shares you are expected to receive $62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Coca-Cola's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.38%).
  • Coca-Cola's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Upcoming dividend payment

Purchase Coca-Cola on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
NYSE:KO Annualized Past and Future Dividends
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 9 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1977 Stocks 2.5%
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 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:KO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.88 1.00
2021-12-31 1.79 1.00
2020-12-31 1.76 13.00
2019-12-31 1.66 19.00
2018-12-31 1.54 18.00
NYSE:KO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-18 1.560 3.251
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
2009-02-19 0.820 3.849
2008-11-20 0.760 3.453

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 (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Coca-Cola's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
James Robert Quincey
COMPENSATION $11,170,814
AGE 53
TENURE AS CEO 1.5 years
CEO Bio

Mr. James Robert B. Quincey has been Chief Executive Officer of The Coca-Cola Company since May 1, 2017. Mr. Quincey has been the President 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% whilst company earnings have fallen more than 20% in the past year.
  • James Robert's remuneration is about 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:

2.2
Average Tenure
54
Average Age
  • The tenure for the Coca-Cola management team is about average.
Management Team

James Robert Quincey

TITLE
President
COMPENSATION
$11M
AGE
53
TENURE
1.5 yrs

Kathy Waller

TITLE
Executive VP
COMPENSATION
$6M
AGE
60
TENURE
4.6 yrs

Brian Smith

TITLE
President of Europe
COMPENSATION
$4M
AGE
63
TENURE
2.3 yrs

Mark Randazza

TITLE
VP, Assistant Controller & Chief Accounting Officer
AGE
52

Ed Hays

TITLE
Senior VP & CTO
AGE
59
TENURE
3.7 yrs

Barry Simpson

TITLE
Senior VP & Chief Information Officer
AGE
58
TENURE
2.1 yrs

Tim Leveridge

TITLE
VP & Investor Relations Officer
AGE
48

Bernhard Goepelt

TITLE
Senior VP
AGE
55
TENURE
6.9 yrs

Beatriz Perez

TITLE
Senior VP and Chief Communications
AGE
48
TENURE
1.5 yrs

Jennifer Mann

TITLE
Senior VP & Chief People Officer
AGE
45
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the Coca-Cola board of directors in years:

11.1
Average Tenure
70
Average Age
  • 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

TITLE
Chairman of the Board
COMPENSATION
$17M
AGE
65
TENURE
9.6 yrs

James Robert Quincey

TITLE
President
COMPENSATION
$11M
AGE
53
TENURE
1.6 yrs

Steve Chan

TITLE
Chairman of Coca-Cola China Limited
AGE
61
TENURE
18.3 yrs

Zahi Khouri

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

John Brock

TITLE
Chairman of Coca-Cola Enterprises Inc
AGE
69
TENURE
10.6 yrs

Ron Allen

TITLE
Independent Director
COMPENSATION
$273K
AGE
76
TENURE
27.8 yrs

Sam Nunn

TITLE
Lead Independent Director
COMPENSATION
$312K
AGE
79
TENURE
4.6 yrs

Barry Diller

TITLE
Director
COMPENSATION
$273K
AGE
76
TENURE
16.8 yrs

Herb Allen

TITLE
Director
COMPENSATION
$270K
AGE
78
TENURE
36.8 yrs

Alexis Herman

TITLE
Director
COMPENSATION
$279K
AGE
70
TENURE
11.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Coca-Cola's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

External News
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Simply Wall St News

Should 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 -

Why The Coca-Cola Company's (NYSE:KO) ROE Of 11% Does Not Tell The Whole Story

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Has The Coca-Cola Company's (NYSE:KO) Performed Against The Industry?

In this article, I will take a look at The Coca-Cola Company's (NYSE:KO) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Was KO's recent earnings decline indicative of a tough track record. … KO's trailing twelve-month earnings (from 29 June 2018) of US$2.16b has

Simply Wall St -

Understanding Your Return On Investment In The Coca-Cola Company (NYSE:KO)

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … 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. … Therefore, looking at how efficiently Coca-Cola is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

What You Must Know About The Coca-Cola Company's (NYSE:KO) Return on Equity

and want a simplistic look at the return on The Coca-Cola Company (NYSE:KO) stock. … The Coca-Cola Company (NYSE:KO) delivered a less impressive 6.13% ROE over the past year, compared to the 12.43% return generated by its industry. … Today I will look at how components such as financial leverage can influence ROE which may impact the sustainability of KO's returns.

Simply Wall St -

Does The Coca-Cola Company's (NYSE:KO) PE Ratio Signal A Selling Opportunity?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between The Coca-Cola Company (NYSE:KO)’s fundamentals and stock market performance. … While KO might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

The Coca-Cola Company (NYSE:KO): Ex-Dividend Is In 5 Days, Should You Buy?

If you are interested in cashing in on The Coca-Cola Company's (NYSE:KO) upcoming dividend of $0.39 per share, you only have 5 days left to buy the shares before its ex-dividend date, 14 June 2018, in time for dividends payable on the 02 July 2018. … Here's how I find good dividend stocks? … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout

Simply Wall St -

The Coca-Cola Company (NYSE:KO): Should The Recent Earnings Drop Worry You?

When The Coca-Cola Company (NYSE:KO) released its most recent earnings update (30 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … See our latest analysis for Coca-Cola Was KO's recent earnings decline worse than the long-term trend and the industry? … Viewing growth from a sector-level, the US beverage industry has been growing its average earnings by double-digit 24.05% in the previous twelve months, and a more subdued 5.27% over the past five.

Simply Wall St -

Is It Too Late To Buy The Coca-Cola Company (NYSE:KO) At Its May Price?

The stock is trading at a lofty price-to-earnings (PE) ratio of 143.57x, telling us that Coca-Cola is overvalued based on current earnings compared to the beverage industry average of 23.67x , and overvalued compared to the US market average ratio of 18.33x. … NYSE:KO PE PEG Gauge May 24th 18 After looking at KO's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … This tells us that when we include its growth in our analysis Coca-Cola's stock can be considered somewhat overvalued , based on its fundamentals.

Simply Wall St -

The Coca-Cola Company (NYSE:KO): What The Forecasts Are Telling Us

Margin Calculation for KO Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 1.15 Billion ÷ 35.41 Billion = 3.24% The past five years have seen Coca-Cola's margin contract, as a result of net income declining at -12.33% on average, which was quicker than the average fall in revenue of -2.85%, indicating that that the company's decline in the top line has also corresponded with a smaller portion flowing out as earnings. … Margins are expected to reverse its previous trend and start to expand, with -0.84% in expected annual earnings growth and a 40.03% expected annual decline in revenue. … This is causing positive net income growth while revenue is forecasted to decline, which is causing the expectation for margins to expand.

Simply Wall St -

Company Info

Map
Description

The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company provides water, enhanced water, and sports drinks; juices; 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, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glacéau Vitaminwater, Gold Peak, FUZE TEA, Glacéau Smartwater, Ice Dew, I LOHAS, and Ayataka brand names. 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
$213,549,302,262
4,256,513,898
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
Staff numbers
61,800
Coca-Cola employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/19 00:48
End of day share price update: 2018/11/16 00:00
Last estimates confirmation: 2018/11/09
Last earnings filing: 2018/10/30
Last earnings reported: 2018/09/28
Last annual earnings reported: 2017/12/31


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.