Coca Cola Stock Analysis (NYSE:KO)

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$46.12 $0.38 (0.83%) KO stock closing price Jul 27, 2017 (Closing)
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Coca Cola
Updated on : Jul 27, 2017
previous close
KO 46.1 (0%)
S&P 500 2475.4 (0%)
Closing Price On: Jul 27, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Soft Drinks
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-3.9%
Operating Profit
Operating Margin:
19.8%
Sector Average:
11.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
49.64B
Debt/Equity Ratio:
 2.25
Compared to the industry
Cash Flow
Operating cash flow:
$2.6B
Net Income:
$1.37B
Dividend Yield
KO dividend yield:
3.12%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KO PS :
5.1
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.3%
Return on Equity:
17.1%
Free Cash Flow Margin:
23.1%
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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 (3/5)

Our Coca Cola stock opinion is based on fundamentals of the company. This Coca Cola stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy KO stock?

  • Coca Cola had a healthy average operating margin of 19.8% over the last 4 quarters.
  • Net margins came in at average 10.7% for Coca Cola over the last twelve months.
  • The company has an operating cash flow which is 1.9 times the net income. We see this as a positive signal.
  • Coca Cola has an attractive ROIC (Return on Invested Capital) of 10.3%
  • Coca Cola has a good Return On Equity (ROE) of 17.1%.
  • Coca Cola has a healthy FCF (Free Cash Flow) margin of 23.1%.

Should you sell KO stock?

  • Coca Cola sales declined by -15.9% year on year in 2017 Q2.
  • Sales declined by -3.9% annually over the last 5 years.
  • Coca Cola has a debt/equity ratio of  2.25, which is worse than the average in the Consumer Staples sector.
  • The KO stock currently trades at a PE of 35.8, which is expensive, compared to the industry average of 24.2.
  • The company is trading at a price to sales multiple of 5.1, which is higher in comparison to the Beverages-Soft Drinks industry average of 1.7, 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