Coca Cola Stock Analysis (NYSE:KO)

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$41.32 $0.18 (0.44%) KO stock closing price Jan 20, 2017 (Closing)
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Coca Cola
Updated on : Jan 20, 2017
previous close
KO 41.3 (0%)
S&P 500 2271.3 (0%)
Closing Price On: Jan 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Soft Drinks
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.6%
Operating Profit
Operating Margin:
20.7%
Sector Average:
10%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
48.27B
Debt/Equity Ratio:
 1.84
Compared to the industry
Cash Flow
Operating cash flow:
$2.9B
Net Income:
$1.05B
Dividend Yield
KO dividend yield:
3.34%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KO PS :
4.2
Industry PS :
1.8
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.9%
Return on Equity:
27.7%
Free Cash Flow Margin:
23.3%
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Coca Cola Analysis Video

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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.

Comments on this video and Coca Cola stock

Lonewolf07 on Coca Cola stock analysis ($43.4)
neutral
I buy enough Coca-Cola I better buy some stock in the company
reply