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:2026-06-11 17:40:26
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 2026-06-11 close. TTM (Trailing Twelve Months) data is used for certain ratios. Data sources include the provided fundamental analysis report.
Overview

Coca-Cola Company (KO) is a global beverage giant in the Consumer Defensive sector with unparalleled brand strength, a vast portfolio, and a massive global franchise system. The company demonstrates exceptional profitability with high margins and returns, supported by strong brand pricing power. However, it operates with a leveraged financial structure and currently trades at premium valuation multiples, leaving little margin for safety. The overall fundamental condition is that of a high-quality, defensive, but fully valued equity.

Valuation
3/10
Profitability
9/10
Financial health
6/10
Operation Advice
  • Recommendation is HOLD.
  • The current price does not offer an attractive margin of safety or compelling expected return for new money.
  • Existing shareholders may continue to hold for the dividend and long-term stability.
  • A more attractive entry point for initiating a Buy position would be in the $75-$78 range.

Valuation

P/E TTM
26.25
P/E LYR
29.71
P/B MRQ
10.69
P/S TTM
--
AI Analysis
  • Coca-Cola's valuation multiples are elevated across the board. The current price is at the top of its historical P/E-based range and is assessed as fully valued to slightly overvalued based on traditional metrics. A reasonable 12-month fundamental target price is estimated around $86.40, with a more conservative target at $80.00.
  • Current Market Price (as of 2026-06-11 close) is $82.53.
  • Valuation Multiples: P/E (TTM) is 26.25x, Forward/Dynamic P/E is 29.71x, Price-to-Book (P/B) is 10.69x, and Price-to-Sales (P/S) is 7.41x.
  • Coca-Cola's valuation multiples are elevated across the board.
  • A P/E ratio near 30x is high for a mature, slow-growth consumer staples company.
  • The P/B ratio of 10.69x is extremely high, reflecting the market's valuation of its massive intangible brand assets.
  • Based on FY2025 diluted EPS of $3.04 and a historical P/E range of 22x to 28x, the estimated price range is $66.88 to $85.12.
  • The current price of $82.53 sits at the very top of the historical P/E-based range.
  • The stock is assessed as fully valued to slightly overvalued based on traditional fundamental metrics.
  • A reasonable 12-month fundamental target price, based on a forward P/E of ~27x on an estimated EPS of $3.20, would be $86.40. A more conservative target using a 25x multiple would be $80.00.
Valuation trend

Profitability

ROE TTM
45.97%
Net margin
27.40%
Gross margin
61.63%
Total revenue
47.94B
AI Analysis
  • Coca-Cola demonstrates exceptional and improving profitability metrics, with very high gross and net margins reflecting powerful brand pricing power. Returns on equity and assets are outstanding, and recent performance shows robust net income growth.
  • Coca-Cola demonstrates exceptional and improving profitability metrics.
  • The company maintains very high gross margins (61.63% in FY2025) and net margins (27.40% in FY2025).
  • The high margins reflect its powerful brand pricing power and efficient cost management.
  • The net margin saw a significant increase from 22.63% in FY2024.
  • Profitability is outstanding with a Return on Equity (ROE) of 45.97% (TTM), which is exceptionally high.
  • The Return on Assets (ROA) of 12.76% (TTM) is also very healthy, indicating efficient use of its asset base.
  • Recent performance shows robust growth with net income growing by 23.29% Year-over-Year (YoY) in FY2025.
  • Revenue growth has been modest but positive, with 1.87% YoY growth in FY2025.
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 exhibits a solid but leveraged financial structure. It has sufficient short-term liquidity, but a notably high debt-to-asset ratio. Overall financial health is stable but leveraged, supported by predictable cash flows.
  • The company exhibits a solid but leveraged financial structure.
  • Liquidity: The current ratio of 1.46 and quick ratio of 1.25 indicate sufficient short-term liquidity to cover current obligations.
  • Solvency: The debt-to-asset ratio of 67.30% is notably high.
  • This level of leverage is common for mature, cash-flow-rich companies in the consumer staples sector.
  • The high leverage is supported by the company's highly predictable cash flows.
  • The overall financial health is stable but leveraged.
  • The company's ability to service its debt is not in question given its strong profitability and market position.
  • The high leverage limits financial flexibility and amplifies risks during economic downturns or periods of rising interest rates.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset73.77%------67.30%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.03------1.46