Coca Cola Stock Analysis (NYSE:KO)
Coca Cola Analysis Video
View Coca Cola stock analysis video. This is our KO analyst opinion covering the buy and sell arguments for KO stock.
The Coca-Cola Co Stock Rating (3.3/5)
Our Coca Cola stock opinion is based on fundamentals of the company. This Coca Cola stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy KO stock?
- The TTM operating margin was good at 20.6% for Coca Cola.
- LTM Net margins were good at 15.6% for Coca Cola.
- The company has an operating cash flow which is 3.8 times the net income. We see this as a positive signal.
- Coca Cola's return on invested capital of 13.1% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Coca Cola at 25.7%.
- The company has a healthy free cash flow margin of 15.2%.
Should you sell KO stock?
- Coca Cola sales declined by -5.9% year on year in 2016 Q4.
- The company saw an average annual sales decline of -2.1% in sales over the last 5 years.
- With a debt/equity ratio of 1.97, Coca Cola is highly leveraged in comparison to Consumer Staples peers.
- The company is trading at a price to sales multiple of 4.4, which is overvalued in comparison to the Beverages-Soft Drinks industry average multiple of 1.7.