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 (3.5/5)
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.
- Net margins came in at average 15.6% for Coca Cola over the last twelve months.
- The operating cash flow looks good at 3.8 times the net income.
- 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 good Free Cash Flow (FCF) margin of 15.2%.
Should you sell KO stock?
- Coca Cola sales declined by -5.9% year on year in 2016 Q4.
- Sales declined by annually over the last 5 years.
- Coca Cola is debt laden and has a high debt/equity ratio of 1.97.
- The company is trading at a price to sales multiple of 4.3, which is higher in comparison to the Beverages-Soft Drinks industry average of 1.8, making KO stock expensive.