Now trading at a price of $71.64, Coca-Cola has moved 1.4% so far today.
Coca-Cola returned gains of 25.7% last year, with its stock price reaching a high of $73.53 and a low of $51.55. Over the same period, the stock underperformed the S&P 500 index by -5.8%. The company's 50-day average price was $68.96. The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. Based in Atlanta, GA, the Large-Cap Consumer Staples company has 79,100 full time employees. Coca-Cola has offered a 2.7% dividend yield over the last 12 months.
Generally Positive Cash Flows but an Average Current Ratio:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $34,300 | $37,266 | $33,014 | $38,655 | $43,004 | $45,754 |
| Gross Margins | 62% | 61% | 59% | 60% | 57% | 60% |
| Net Margins | 19% | 24% | 23% | 25% | 22% | 23% |
| Net Income (M) | $6,434 | $8,920 | $7,747 | $9,771 | $9,542 | $10,714 |
| Net Interest Expense (M) | $950 | $946 | $1,437 | $1,597 | $882 | $1,527 |
| Depreciation & Amort. (M) | $1,086 | $1,365 | $1,536 | $1,452 | $1,260 | $1,128 |
| Diluted Shares (M) | 4,299 | 4,314 | 4,323 | 4,340 | 4,350 | 4,339 |
| Earnings Per Share | $1.5 | $2.07 | $1.79 | $2.25 | $2.19 | $2.47 |
| EPS Growth | n/a | 38.0% | -13.53% | 25.7% | -2.67% | 12.79% |
| Avg. Price | $38.74 | $44.84 | $45.47 | $50.87 | $59.81 | $71.64 |
| P/E Ratio | 25.66 | 21.45 | 25.26 | 22.51 | 27.19 | 28.89 |
| Free Cash Flow (M) | $389 | $8,417 | $8,667 | $11,258 | $9,534 | $9,747 |
| CAPEX (M) | $1,548 | $2,054 | $1,177 | $1,367 | $1,484 | $1,852 |
| EV / EBITDA | 18.71 | 19.32 | 21.78 | 21.29 | 23.58 | 27.34 |
| Total Debt (M) | $35,376 | $36,022 | $41,095 | $40,792 | $37,175 | $39,467 |
| Net Debt / EBITDA | 2.57 | 2.58 | 3.26 | 2.65 | 2.27 | 2.42 |
| Current Ratio | 0.87 | 0.76 | 1.32 | 1.13 | 1.15 | 1.13 |
Coca-Cola has generally positive cash flows and growing revenues and a flat capital expenditure trend. Additionally, the company's financial statements display positive EPS growth and healthy leverage levels. Furthermore, Coca-Cola has just enough current assets to cover current liabilities, as shown by its current ratio of 1.13.
Coca-Cola's P/B and P/E Ratios Are Higher Than Average:
Coca-Cola has a trailing twelve month P/E ratio of 28.0, compared to an average of 22.08 for the Consumer Staples sector. Based on its EPS guidance of $3.04, the company has a forward P/E ratio of 22.7. The 10.6% compound average growth rate of Coca-Cola's historical and projected earnings per share yields a PEG ratio of 2.64. This suggests that these shares are overvalued. Furthermore, Coca-Cola is likely overvalued compared to the book value of its equity, since its P/B ratio of 11.94 is higher than the sector average of 3.05. The company's shares are currently trading 293.0% below their Graham number. Overall, Coca-Cola's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Coca-Cola Has an Average Rating of Buy:
The 24 analysts following Coca-Cola have set target prices ranging from $65.0 to $78.0 per share, for an average of $71.51 with a buy rating. The company is trading 0.2% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Coca-Cola has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 64.3% of the company's shares, and the insider ownership rate stands at 9.95%, suggesting a large amount of insider shareholders. The largest shareholder is Berkshire Hathaway, Inc, whose 9% stake in the company is worth $28,655,999,755.
