Coca Cola Stock Analysis (NYSE:KO)

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$43.15 $0.14 (0.33%) KO stock closing price Apr 28, 2017 (Closing)
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Coca Cola
Updated on : Apr 28, 2017
previous close
KO 43.2 (0%)
S&P 500 2384.2 (0%)
Closing Price On: Apr 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Soft Drinks
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2.9%
Operating Profit
Operating Margin:
20.8%
Sector Average:
10.8%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
47.45B
Debt/Equity Ratio:
 2.06
Compared to the industry
Cash Flow
Operating cash flow:
$788M
Net Income:
$1.18B
Dividend Yield
KO dividend yield:
3.29%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
Recent Growth
Long Term Growth
High Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KO PS :
4.6
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.1%
Return on Equity:
25%
Free Cash Flow Margin:
4%
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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 (3.3/5)

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.

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