Coca-Cola (KO) Stock Analysis
This is a peer-relative look at Coca-Cola (KO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Food, Beverage & Tobacco peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | KO |
|---|---|
| Name | The Coca-Cola Company |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Food, Beverage & Tobacco |
| GICS Industry | Beverages |
| GICS Sub-Industry | Soft Drinks & Non-alcoholic Beverages |
| Market Capitalization | 352.67 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | January 2, 1962 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| Total Return (1Y) | 20.30% | 0.15% |
| Total Return (3Y, Annualized) | 12.77% | 0.36% |
| Total Return (5Y, Annualized) | 10.94% | 1.03% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 17.98% | 31.35% |
| Beta (5Y) | 0.34 | 0.45 |
| Max Drawdown (5Y) | -17.27% | -49.32% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.90 | -0.15 |
| Sortino Ratio (1Y) | 1.47 | -0.20 |
Profitability
ROE (TTM)
Coca-Cola (KO) posts ROE of 43.37%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
KO
Food, Beverage & Tobacco industry group
43.37%
Group distribution
- KO
- 43.37%
- Max
- 34.02%
- Q3
- 18.27%
- Median
- 14.93%
- Q1
- 3.98%
- Min
- -12.58%
Largest peers
- PEP
- 51.51%
- KO
- 43.37%
- MNST
- 26.65%
- BTI
- 15.82%
- PM
- --
- BUD
- --
- MO
- --
Net Margin (TTM)
Coca-Cola (KO) keeps 27.80% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
KO
Food, Beverage & Tobacco industry group
27.80%
Group distribution
- KO
- 27.80%
- Max
- 27.80%
- Q3
- 12.49%
- Median
- 6.11%
- Q1
- 1.35%
- Min
- -14.28%
Largest peers
- MO
- 39.52%
- BTI
- 30.32%
- KO
- 27.80%
- PM
- 26.74%
- MNST
- 23.11%
- BUD
- 11.90%
- PEP
- 10.79%
Operating Margin (TTM)
Coca-Cola (KO) turns 35.06% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
KO
Food, Beverage & Tobacco industry group
35.06%
Group distribution
- Max
- 36.04%
- KO
- 35.06%
- Q3
- 17.42%
- Median
- 10.90%
- Q1
- 3.74%
- Min
- -7.33%
Largest peers
- MO
- 62.30%
- PM
- 36.04%
- KO
- 35.06%
- BTI
- 34.58%
- MNST
- 31.02%
- BUD
- 26.69%
- PEP
- 16.84%
Profitability Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| ROE (TTM) | 43.37% | 14.93% |
| ROA (TTM) | 9.51% | 5.50% |
| Net Margin (TTM) | 27.80% | 6.11% |
| Operating Margin (TTM) | 35.06% | 10.90% |
| Gross Margin (TTM) | 61.74% | 34.44% |
Growth
Revenue Growth
Coca-Cola (KO) grew revenue 1.87%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Coca-Cola (KO) grew earnings per share 23.58%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.
Growth Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 1.87% | 2.97% |
| Revenue Growth (3Y CAGR) | 3.69% | 3.03% |
| EPS Growth (YoY) | 23.58% | -2.63% |
| EPS Growth (3Y CAGR) | 11.55% | 4.72% |
Financial Strength
Current Ratio (MRQ)
Coca-Cola (KO) has current ratio of 1.36, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
KO
Food, Beverage & Tobacco industry group
1.36
Group distribution
- Max
- 4.39
- Q3
- 2.41
- Median
- 1.60
- KO
- 1.36
- Q1
- 1.02
- Min
- 0.54
Largest peers
- MNST
- 3.26
- KO
- 1.36
- PM
- 0.98
- PEP
- 0.93
- BTI
- 0.87
- MO
- 0.62
- BUD
- --
Debt / Equity (MRQ)
Coca-Cola (KO) has debt-to-equity ratio of 1.25, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
KO
Food, Beverage & Tobacco industry group
1.25
Group distribution
- Max
- 2.20
- KO
- 1.25
- Q3
- 1.15
- Median
- 0.67
- Q1
- 0.34
- Min
- 0.00
Largest peers
- PEP
- 2.39
- KO
- 1.25
- BUD
- 0.75
- BTI
- 0.73
- MNST
- 0.01
- PM
- --
- MO
- --
Financial Strength Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 1.60 |
| Debt / Equity (MRQ) | 1.25 | 0.67 |
| Net Debt / EBITDA | 1.84 | 2.25 |
Dividends
Dividend Yield (TTM)
Coca-Cola (KO) has dividend yield of 2.51%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
KO
Food, Beverage & Tobacco industry group
2.51%
Group distribution
- Max
- 9.56%
- Q3
- 4.15%
- Median
- 2.57%
- KO
- 2.51%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MO
- 5.63%
- PEP
- 4.24%
- BTI
- 3.92%
- PM
- 2.99%
- KO
- 2.51%
- BUD
- 0.00%
- MNST
- 0.00%
Dividend Payout Ratio (TTM)
Coca-Cola (KO) has payout ratio of 64.78%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
KO
Food, Beverage & Tobacco industry group
64.78%
Group distribution
- Max
- 159.06%
- Q3
- 85.24%
- KO
- 64.78%
- Median
- 44.62%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MO
- 87.68%
- PM
- 81.09%
- PEP
- 75.33%
- BTI
- 68.73%
- KO
- 64.78%
- BUD
- 36.02%
- MNST
- 0.00%
Dividend Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.51% | 2.57% |
| Dividend Payout Ratio (TTM) | 64.78% | 44.62% |
Valuation
P/E Ratio (TTM)
Coca-Cola (KO) trades at P/E ratio of 25.86, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
KO
Food, Beverage & Tobacco industry group
25.86
Group distribution
- Max
- 53.44
- Q3
- 29.84
- KO
- 25.86
- Median
- 18.36
- Q1
- 13.03
- Min
- 5.50
Largest peers
- MNST
- 45.63
- PM
- 27.10
- KO
- 25.86
- BUD
- 22.34
- PEP
- 17.76
- MO
- 15.56
- BTI
- 13.56
P/S Ratio (TTM)
Coca-Cola (KO) trades at 7.16 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.
KO
Food, Beverage & Tobacco industry group
7.16
Group distribution
- KO
- 7.16
- Max
- 4.15
- Q3
- 2.38
- Median
- 1.04
- Q1
- 0.57
- Min
- 0.00
Largest peers
- MNST
- 10.51
- KO
- 7.16
- PM
- 7.06
- MO
- 5.98
- BTI
- 5.17
- BUD
- 2.58
- PEP
- 1.90
P/B Ratio (MRQ)
Coca-Cola (KO) trades at 10.49 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
KO
Food, Beverage & Tobacco industry group
10.49
Group distribution
- KO
- 10.49
- Max
- 5.75
- Q3
- 3.46
- Median
- 1.75
- Q1
- 0.99
- Min
- 0.00
Largest peers
- BUD
- 10.91
- BTI
- 10.78
- MNST
- 10.58
- KO
- 10.49
- PEP
- 8.64
- PM
- -31.58
- MO
- -37.98
Valuation Metrics
| Metric | Current stock: KO | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 25.86 | 18.36 |
| P/S Ratio (TTM) | 7.16 | 1.04 |
| P/B Ratio (MRQ) | 10.49 | 1.75 |
| Free Cash Flow Yield (TTM) | 0.89% | 4.58% |