Is Coca Cola Stock a Good Investment?
Coca Cola Investment Advice | KO |
- Examine Coca Cola's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Coca Cola's leadership team and their track record. Good management can help Coca Cola navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Soft Drinks & Non-alcoholic Beverages space and any emerging trends that could impact Coca Cola's business and its evolving consumer preferences.
- Compare Coca Cola's performance and market position to its competitors. Analyze how Coca Cola is positioned in terms of product offerings, innovation, and market share.
- Check if Coca Cola pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Coca Cola's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in The Coca Cola stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if The Coca Cola is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Coca Cola Stock
Researching Coca Cola's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 65.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.72. Coca Cola last dividend was issued on the 29th of November 2024. The entity had 2:1 split on the 13th of August 2012.
To determine if Coca Cola is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Coca Cola's research are outlined below:
| Coca Cola generated a negative expected return over the last 90 days | |
| About 65.0% of the company shares are owned by institutional investors | |
| Latest headline from benzinga.com: Decoding Coca-Colas Options Activity Whats the Big Picture |
Coca Cola Quarterly Gross Profit |
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Coca Cola uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in The Coca Cola. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Coca Cola's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of April 2024 Upcoming Quarterly Report | View | |
| 24th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 11th of February 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Coca Cola's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Coca Cola's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2005-02-16 | 2004-12-31 | 0.2 | 0.23 | 0.03 | 15 | ||
2001-10-18 | 2001-09-30 | 0.2 | 0.23 | 0.03 | 15 | ||
2008-10-15 | 2008-09-30 | 0.38 | 0.42 | 0.04 | 10 | ||
2021-04-19 | 2021-03-31 | 0.5 | 0.55 | 0.05 | 10 | ||
2021-02-10 | 2020-12-31 | 0.42 | 0.47 | 0.05 | 11 | ||
2022-04-25 | 2022-03-31 | 0.58 | 0.64 | 0.06 | 10 | ||
2015-04-22 | 2015-03-31 | 0.42 | 0.48 | 0.06 | 14 | ||
2021-10-27 | 2021-09-30 | 0.58 | 0.65 | 0.07 | 12 |
Know Coca Cola's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Coca Cola is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The Coca Cola backward and forwards among themselves. Coca Cola's institutional investor refers to the entity that pools money to purchase Coca Cola's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2024-09-30 | 40 M | Legal & General Group Plc | 2024-06-30 | 38.7 M | Gqg Partners Llc | 2024-09-30 | 37.8 M | Franklin Resources Inc | 2024-09-30 | 32.9 M | Bank Of New York Mellon Corp | 2024-06-30 | 32.8 M | Bank Of America Corp | 2024-06-30 | 31.8 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 29.4 M | Wellington Management Company Llp | 2024-06-30 | 27.6 M | Royal Bank Of Canada | 2024-06-30 | 27.4 M | Berkshire Hathaway Inc | 2024-06-30 | 400 M | Vanguard Group Inc | 2024-09-30 | 376 M |
Coca Cola's market capitalization trends
The company currently falls under 'Mega-Cap' category with a market capitalization of 276.04 B.Market Cap |
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Coca Cola's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.17 | 0.18 | |
| Return On Capital Employed | 0.15 | 0.14 | |
| Return On Assets | 0.11 | 0.14 | |
| Return On Equity | 0.41 | 0.37 |
Determining Coca Cola's profitability involves analyzing its financial statements and using various financial metrics to determine if Coca Cola is a good buy. For example, gross profit margin measures Coca Cola's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Coca Cola's profitability and make more informed investment decisions.
Coca Cola's Earnings Breakdown by Geography
Evaluate Coca Cola's management efficiency
Coca Cola has Return on Asset (ROA) of 0.0844 % which means that for every $100 of assets, it generated a profit of $0.0844. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.3723 %, which means that it produced $0.3723 on every 100 dollars invested by current stockholders. Coca Cola's management efficiency ratios could be used to measure how well Coca Cola manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Coca Cola's Return On Tangible Assets are very stable compared to the past year. As of the 30th of November 2024, Return On Assets is likely to grow to 0.14, while Return On Capital Employed is likely to drop 0.14. At this time, Coca Cola's Return On Assets are very stable compared to the past year. As of the 30th of November 2024, Asset Turnover is likely to grow to 0.87, while Non Currrent Assets Other are likely to drop about 4.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 6.36 | 6.67 | |
| Tangible Book Value Per Share | (1.33) | (1.26) | |
| Enterprise Value Over EBITDA | 18.40 | 14.81 | |
| Price Book Value Ratio | 9.82 | 10.76 | |
| Enterprise Value Multiple | 18.40 | 14.81 | |
| Price Fair Value | 9.82 | 10.76 | |
| Enterprise Value | 100.7 B | 105.7 B |
The management team at Coca Cola has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Dividend Yield 0.0301 | Forward Dividend Yield 0.0301 | Forward Dividend Rate 1.94 | Beta 0.62 |
Basic technical analysis of Coca Stock
As of the 30th of November, Coca Cola shows the Coefficient Of Variation of (582.03), mean deviation of 0.6688, and Risk Adjusted Performance of (0.13). Coca Cola technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Coca Cola's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Coca Cola insiders, such as employees or executives, is commonly permitted as long as it does not rely on Coca Cola's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Coca Cola insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Wollaert Guy over a year ago Coca Cola exotic insider transaction detected |
Coca Cola's Outstanding Corporate Bonds
Coca Cola issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Coca Cola uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Coca bonds can be classified according to their maturity, which is the date when The Coca Cola has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CCEP 15 15 JAN 27 Corp BondUS19123MAF05 | View | |
| US191216AF75 Corp BondUS191216AF75 | View | |
| COCA COLA FEMSA S Corp BondUS191241AF58 | View | |
| COCA COLA CO Corp BondUS191216CM09 | View | |
| KO 4125 25 MAR 40 Corp BondUS191216CP30 | View | |
| US191216CQ13 Corp BondUS191216CQ13 | View | |
| COCA A 29 Corp BondUS191216CE82 | View | |
| COCA COLA CO Corp BondUS191216DD90 | View |
Understand Coca Cola's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Coca Cola's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.13) | |||
| Market Risk Adjusted Performance | (1.30) | |||
| Mean Deviation | 0.6688 | |||
| Coefficient Of Variation | (582.03) | |||
| Standard Deviation | 0.8481 | |||
| Variance | 0.7193 | |||
| Information Ratio | (0.33) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.30) | |||
| Treynor Ratio | (1.31) | |||
| Maximum Drawdown | 4.0 | |||
| Value At Risk | (1.66) | |||
| Potential Upside | 1.1 | |||
| Skewness | (0.61) | |||
| Kurtosis | 0.2144 |
| Risk Adjusted Performance | (0.13) | |||
| Market Risk Adjusted Performance | (1.30) | |||
| Mean Deviation | 0.6688 | |||
| Coefficient Of Variation | (582.03) | |||
| Standard Deviation | 0.8481 | |||
| Variance | 0.7193 | |||
| Information Ratio | (0.33) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.30) | |||
| Treynor Ratio | (1.31) | |||
| Maximum Drawdown | 4.0 | |||
| Value At Risk | (1.66) | |||
| Potential Upside | 1.1 | |||
| Skewness | (0.61) | |||
| Kurtosis | 0.2144 |
Consider Coca Cola's intraday indicators
Coca Cola intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Coca Cola stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Coca Cola Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 24th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 23rd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 21st of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Coca Stock media impact
Far too much social signal, news, headlines, and media speculation about Coca Cola that are available to investors today. That information is available publicly through Coca media outlets and privately through word of mouth or via Coca internal channels. However, regardless of the origin, that massive amount of Coca data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Coca Cola news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Coca Cola relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Coca Cola's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Coca Cola alpha.
Coca Cola Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Coca Cola can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Coca Cola Historical Investor Sentiment
Investor biases related to Coca Cola's public news can be used to forecast risks associated with an investment in Coca. The trend in average sentiment can be used to explain how an investor holding Coca can time the market purely based on public headlines and social activities around The Coca Cola. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Coca Cola's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Coca Cola and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Coca Cola news discussions. The higher the estimate score, the more favorable the investor's outlook on Coca Cola.
Coca Cola Corporate Directors
| Alexis Herman | Independent Director | Profile | |
| Robert Kotick | Independent Director | Profile | |
| Ana OShea | Independent Director | Profile | |
| Helene Gayle | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in The Coca Cola. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Soft Drinks & Non-alcoholic Beverages space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coca Cola. If investors know Coca will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coca Cola listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.07) | Dividend Share 1.915 | Earnings Share 2.41 | Revenue Per Share 10.753 | Quarterly Revenue Growth (0.01) |
The market value of Coca Cola is measured differently than its book value, which is the value of Coca that is recorded on the company's balance sheet. Investors also form their own opinion of Coca Cola's value that differs from its market value or its book value, called intrinsic value, which is Coca Cola's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coca Cola's market value can be influenced by many factors that don't directly affect Coca Cola's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Coca Cola's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Coca Cola is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coca Cola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.