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)
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.