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 Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy KO stock?
- The TTM operating margin was good at 20.8% for Coca Cola.
- Net margins stood at a healthy 15.3% (average) for Coca Cola in the Trailing Twelve Months.
- Coca Cola has an attractive ROIC (Return on Invested Capital) of 13.1%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Coca Cola at 25%.
Should you sell KO stock?
- Coca Cola revenue saw a decline of -11.3% YoY in 2017 Q1.
- Revenue declined at a CAGR of -2.9% over the last 5 years.
- With a debt/equity ratio of 2.06, Coca Cola is highly leveraged in comparison to Consumer Staples peers.
- Cash flow from operations is 0.7 times net income which is a negative signal.
- The company is trading at a price to sales multiple of 4.6, which is overvalued in comparison to the Beverages-Soft Drinks industry average multiple of 1.7.