Coca-Cola Company logged a 0.4% change during today's afternoon session, and is now trading at a price of $64.05 per share. The S&P 500 index moved -0.6% and the Nasdaq posted a -1.5% change. KO's trading volume is 3,869,027 compared to the stock's average volume of 13,947,900.
Over the last 52 weeks, the stock moved 8.4%, with a high of $67.2 and a low of $54.02. During this time, the stock underperformed the S&P 500 index by 28.1%. The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The large-cap Consumer Defensive company has 79,000 full time employees and is based in Atlanta, GA. Coca-Cola Company has returned a 2.7% dividend yield over the last 12 months.
Snapshot of the Company's Consistent operating margins and A pattern of improving cash flows:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $31,856 | $37,266 | $33,014 | $38,655 |
| Revenue Growth | n/a | 17.0% | -11.4% | 17.1% |
| Gross Margins | 63.05% | 60.77% | 59.31% | 60.27% |
| Gross Margins Growth | n/a | -3.62% | -2.4% | 1.62% |
| Operating Margins | 29.32% | 27.56% | 29.46% | 28.56% |
| Operating Margins Growth | n/a | -6.0% | 6.89% | -3.05% |
| Earnings Per Share | $1.5 | $2.07 | $1.79 | $2.25 |
| EPS Growth | n/a | 38.0% | -13.53% | 25.7% |
| Free Cash Flow (MM) | $6,280 | $8,417 | $8,667 | $11,258 |
| FCF Growth | n/a | 34.03% | 2.97% | 29.9% |
| Capital Expenditures (MM) | $-1,347 | $-2,054 | $-1,177 | $-1,367 |
| Net Debt / EBITDA | 3.15 | 2.73 | 2.68 | 2.04 |
Basic Valuation Metrics Show Coca-Cola Company Is Overvalued:
Compared to the Consumer Defensive sector's average of 24.21, Coca-Cola Company has a trailing twelve month price to earnings (P/E) ratio of 28.1 and, based on its Eps guidance of 2.53, an expected P/E ratio of 25.3. The firm's price to earnings growth (PEG) is 4.88, which indicates that it is overvalued in terms of its expected rate of earnings growth. . Coca-Cola Company's price to book (P/B) ratio is 12.1 compared to its sector average of 4.09.
As of the date of publication, the company is trading 289.4% above its fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 2.28 * 5.274) = $16.45
There is Mixed market sentiment About Coca-Cola Company:
24 analysts are following Coca-Cola Company and have set target prices ranging from $61 to $77 per share. On average, they have given the company a rating of buy. At today's prices, KO is trading -5.18% away from its average analyst target price of $67.55 per share, implying an analyst consensus of some upside potential for the stock. The company has a very low short interest since 0.7% of the company's shares are tied to short positions. Institutions own 71.4% of Coca-Cola Company's shares, while the insider ownership rate stands at 0.67%. The biggest shareholder is Berkshire Hathaway, Inc with a 9.25% stake in the company worth approximately $25,619,958,496.00.
