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 (3.4/5)
Our Coca Cola stock opinion is based on fundamentals of the company. This Coca Cola stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy KO stock?
- Coca Cola's average operating margin of 20.7% was exceptional.
- Net margins stood at a healthy 17% (average) for Coca Cola in the Trailing Twelve Months.
- The company has an operating cash flow which is 2.8 times the net income. We see this as a positive signal.
- Coca Cola's return on invested capital of 12.9% is good.
- The LTM ROE of 27.7% for Coca Cola is attractive.
- The company has a healthy free cash flow margin of 23.3%.
Should you sell KO stock?
- Coca Cola sales shrank by -6.9% year-over-year in 2016 Q3.
- Sales declined by annually over the last 5 years.
- Coca Cola is debt laden and has a high debt/equity ratio of 1.84.
- The company is trading at a price to sales multiple of 4.2, which is higher in comparison to the Beverages-Soft Drinks industry average of 1.8, making KO stock expensive.