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:2026-06-03 17:39:38
Analysis based on real data from 5 financial reports: 2025-12-31, 2024-12-31, 2023-12-31, 2023-06-30, 2023-03-31. Current price data as of 2026-06-04. Data sources include company financial statements and market trading data.
Overview

Coca-Cola Company (KO) is a global beverage giant with a dominant brand, operating in the Consumer Defensive sector. The company exhibits robust profitability and solid financial health, though it carries significant debt typical for mature, cash-generative firms. Its valuation appears rich, trading above fundamental ranges based on current earnings, making it a premium defensive equity.

Valuation
2/10
Profitability
9/10
Financial health
7/10
Operation Advice
  • Existing shareholders should hold the stock for its stability and reliable dividend.
  • New investors should wait for a more favorable entry point, such as during market pullbacks, as the current price is slightly overvalued based on traditional metrics.
  • A buy recommendation would require a more attractive valuation or clearer signs of accelerating organic revenue growth.

Valuation

P/E TTM
24.62
P/E LYR
29.71
P/B MRQ
10.03
P/S TTM
--
AI Analysis
  • The current price of $78.76 appears slightly overvalued based on standard P/E analysis relative to current earnings. Valuation multiples (P/E ~25-30, P/B ~10) are rich, reflecting the stock's premium, defensive status and brand moat rather than traditional value metrics.
  • Current Price: $78.76 (as of 2026-06-04).
  • Recent Trading Range: Over the last 60 days, KO has traded between a low of $74.07 and a high of $82.66. The current price is near the middle of this range.
  • P/E Ratio: The Trailing Twelve Months (TTM) P/E is 24.62. The forward (dynamic) P/E is 29.71. Both metrics are above the historical average for mature consumer staples companies.
  • P/B Ratio: At 10.03, the Price-to-Book ratio is very high, typical for a company with immense brand value and a capital structure reliant on debt.
  • P/S Ratio: The TTM Price-to-Sales ratio of 7.07 is elevated, reflecting a premium for its high-margin revenue.
  • Fundamental Price Range: Using TTM EPS of $3.04 and a P/E range of 20x-25x gives a fundamental value range of $60.80 to $76.00.
  • Using latest annual EPS of $3.05 and the same range gives $61.00 to $76.25.
  • The current market price of $78.76 trades above the upper end of this fundamental range.
  • A 12-month fundamental target price is estimated at $76.25 by applying a 25x multiple to current EPS. To justify the current price, the market is implicitly forecasting EPS growth.
  • Verdict: Based on a standard P/E analysis, the current price appears slightly overvalued. The stock is trading on its quality, brand moat, 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 metrics, with excellent margins and outstanding returns, underscoring its pricing power and operational efficiency. Profitability has shown a positive trend with significant net income growth.
  • Margins: The company maintains excellent margins. The gross margin of 61.63% (2025 annual) reflects its powerful brand and pricing power.
  • The net margin of 27.40% is exceptionally high for a consumer goods company, demonstrating efficient cost management and the benefit of its capital-light franchise model.
  • Returns: The Return on Equity (ROE) of 45.97% is outstanding, a product of both high net margins and significant financial leverage.
  • The Return on Assets (ROA) of 12.76% is also strong, indicating efficient use of its asset base to generate profits.
  • Trend: Profitability has shown a positive trend. Net income grew by 23.29% year-over-year in the latest annual report (2025), a significant acceleration from the previous year.
  • This growth was achieved on modest revenue growth of 1.87%, highlighting effective margin expansion and cost control.
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
  • The company's financial health is solid but carries a significant level of debt, which is typical for mature, cash-generative firms. Liquidity is sufficient, though solvency metrics show elevated leverage that introduces financial risk but also amplifies returns.
  • Liquidity: The current ratio of 1.46 and quick ratio of 1.25 indicate sufficient short-term liquidity to cover its obligations, though the margin is not excessively high.
  • Solvency: The debt-to-asset ratio of 67.30% is elevated. This high leverage amplifies returns on equity but also introduces financial risk.
  • The high leverage is a critical metric to monitor, especially in a rising interest rate environment.
  • Profitability & Cash Flow Implication: The exceptionally high ROE is partly driven by this leverage.
  • The company's strong and stable cash flows from its global operations are used to service this debt, pay dividends, and fund share repurchases.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset73.77%------67.30%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.03------1.46