Coca-Cola Company (The)(KO) - Stock detail

Coca-Cola Company (The)

US
KO
The Coca-Cola Company(Listing date: 09/15/1919)

The Coca-Cola Company was founded on May 8, 1886, and was registered in Delaware in September 1919. It is the world's largest non-alcoholic beverage company. The company owns or licenses and sells more than 500 non-alcoholic beverage brands, which are divided into the following categories: sparkling soft drinks; water, enhanced water and sports drinks; juices, dairy and plant-based drinks; tea and coffee; and energy drinks. The company owns and sells four of the world's top five non-alcoholic sparkling soft drink brands: Coca-Cola, Diet Coke, Fanta and Sprite. Since 1886, finished beverages bearing the company's trademark have been sold in the United States and are now available in more than 200 countries and regions.

AI Value AnalystHold
Overall Rating6/10
Generated at:2026-03-04 16:36:16
Analysis based on 5 financial reports: 2025-12-31, 2024-12-31, 2023-12-31, 2023-06-30, and 2023-03-31. Market price data as of 2026-03-05. Comprehensive financial analysis using latest annual report data with complete coverage of key financial metrics.
Overview

Coca-Cola Company is a global beverage leader with strong brand equity and defensive characteristics. The company demonstrates robust profitability with improving margins and returns, strong financial health with adequate liquidity and moderate leverage, but trades at premium valuation multiples that limit near-term upside potential.

Valuation
3/10
Profitability
8/10
Financial health
7/10
Operation Advice
  • Hold existing positions for dividend income and defensive characteristics.
  • New investors should wait for better entry points around $72-75 range or consider dollar-cost averaging.
  • Target price ranges: conservative $82-85 (5-9% upside), moderate $86-90 (10-15% upside), optimistic $92-95 (18-22% upside).

Valuation

P/E TTM
26.20
P/E LYR
29.71
P/B MRQ
10.67
P/S TTM
--
AI Analysis
  • Coca-Cola trades at premium valuation multiples (P/E 26.20x, Forward P/E 29.71x, P/B 10.67x, P/S 7.02x) that are justified by brand equity and cash flow generation but limit near-term upside. Current price of $78.10 represents fair value relative to historical trading range.
  • P/E (TTM) of 26.20x is above historical average but justified by improved profitability
  • Forward P/E of 29.71x reflects market expectations for future earnings growth
  • P/B ratio of 10.67x is elevated due to high ROE and intangible brand value
  • P/S ratio of 7.02x represents premium valuation consistent with quality consumer staples
  • Trades at premium valuation multiple compared to industry peers, warranted by superior brand equity and global distribution
  • Current price of $78.10 appears fairly valued relative to historical trading range and fundamental performance
  • Stock is not significantly undervalued but offers reasonable value given defensive characteristics and dividend yield
Valuation trend

Profitability

ROE TTM
45.97%
Net margin
27.40%
Gross margin
61.63%
Total revenue
47.94B
AI Analysis
  • Coca-Cola exhibits robust and improving profitability with revenue growth, margin expansion, and exceptional return metrics. Gross margin improved to 61.63% while ROE reached 45.97%, reflecting premium brand positioning and effective capital allocation.
  • Revenue growth of 1.87% year-over-year to $47.94B in 2025, maintaining consistent top-line performance
  • Gross margin improved to 61.63% in 2025 from 61.06% in 2024, reflecting pricing power and cost management
  • Net income growth of 23.29% year-over-year to $13.11B in 2025, demonstrating effective bottom-line management
  • ROE increased significantly to 45.97% from 41.86% in 2024, indicating improved capital allocation
  • Consistent margin maintenance around 60% gross margin and 23-28% net margin over recent years
  • Profitability profile reflects premium brand positioning, global scale advantages, and effective revenue management strategies
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM41.86%------45.97%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue47.06B------47.94B

Financial health

Debt/Asset
67.30%
Current ratio
1.46
Quick ratio
1.25
Cash ratio
1.25
AI Analysis
  • Coca-Cola demonstrates strong financial health with adequate liquidity (current ratio 1.46), moderate leverage (debt-to-equity 67.30%), and strong cash flow generation supporting dividends and investments.
  • Current ratio of 1.46 and quick ratio of 1.25 indicate adequate short-term liquidity to meet obligations
  • Debt-to-equity ratio of 67.30% reflects moderate leverage, typical for mature consumer staples companies
  • ROE of 45.97% and ROA of 12.76% demonstrate exceptional efficiency in generating returns from equity and assets
  • Strong operating cash flows support dividend payments and strategic investments
  • Financial structure appears sustainable with sufficient liquidity buffers and reasonable leverage levels
  • Financial condition supports ongoing operations and dividend distributions
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset73.77%------67.30%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.03------1.46