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 Rating6.7/10
Generated at:2026-04-17 17:41:26
Analysis based on 5 financial reports: 2025-12-31, 2024-12-31, 2023-12-31, 2023-06-30, 2023-03-31. Stock price as of 2026-04-18. Data includes company basic information, financial condition, profitability, and valuation metrics.
Overview

Coca-Cola Company (KO) is a global beverage giant in the Consumer Defensive sector with strong brand equity and global distribution. The company demonstrates exceptionally strong and improving profitability with high returns on capital, supported by a solid but leveraged financial position. Valuation metrics suggest the stock trades at a premium, limiting near-term capital appreciation potential, making it suitable for long-term capital preservation and dividend income.

Valuation
5/10
Profitability
9/10
Financial health
6/10
Operation Advice
  • For existing shareholders, maintain a Hold position.
  • For new investors seeking a defensive, dividend-paying stock, consider waiting for a pullback towards the lower end of the $73.00-$82.00 reasonable price range for a more attractive entry point, though initiating a small position at current levels for a long-term portfolio could also be justified.
  • A fundamental target price is $78.00.

Valuation

P/E TTM
26.20
P/E LYR
29.71
P/B MRQ
10.67
P/S TTM
--
AI Analysis
  • Valuation metrics indicate Coca-Cola is trading at premium levels across P/E, P/B, and P/S ratios, typical for a low-growth, high-yield defensive stock. At the current price of $75.74, the stock appears slightly undervalued or fairly valued relative to a target of $78.00 and sits within a reasonable price range of $73.00-$82.00.
  • Current Price: $75.74 (as of 2026-04-18).
  • Trailing twelve-month (TTM) P/E is 26.20, and forward (dynamic) P/E is 29.71, which are high multiples typical for a low-growth, high-yield defensive stock.
  • Price-to-Book (P/B) ratio of 10.67 is very high, reflecting the market's valuation of immense intangible brand value and ultra-high ROE.
  • TTM Price-to-Sales (P/S) ratio of 6.80 is elevated, indicating a significant premium for each dollar of sales based on brand power and margin profile.
  • Using FY 2025 diluted EPS of $3.04: Conservative P/E (24x) yields $72.96, Current Market P/E (~26x) yields $79.65, Premium P/E (28x) yields $85.12.
  • Reasonable price range is $73.00 to $82.00.
  • Fundamental target price can be set at $78.00, aligning with a P/E of approximately 25.7x FY 2025 earnings.
  • At the current price of $75.74, the stock sits near the lower end of the calculated reasonable range and appears to be slightly undervalued or fairly valued compared to the $78.00 target.
  • All absolute valuation metrics (P/E, P/B, P/S) are at premium levels historically.
Valuation trend

Profitability

ROE TTM
45.97%
Net margin
27.40%
Gross margin
61.63%
Total revenue
47.94B
AI Analysis
  • Coca-Cola demonstrates exceptionally strong and improving profitability with robust margins and high returns on capital. Revenue grew modestly in FY 2025, but net income surged significantly due to operational efficiency and cost management.
  • For FY 2025, revenue grew modestly by 1.87% to $47.94B.
  • Net income attributable to shareholders surged by 23.29% to $13.11B in FY 2025, indicating significant operational efficiency and/or favorable cost management.
  • Gross margin of 61.63% for FY 2025 is robust and has improved year-over-year.
  • Net margin of 27.40% for FY 2025 is robust and has improved year-over-year.
  • Net margin expanded from 22.63% in FY 2024 to 27.40% in FY 2025, which is particularly impressive and drives substantial earnings growth.
  • Return on Equity (ROE) of 45.97% is extraordinarily high, benefiting from both high profitability and significant financial leverage.
  • Return on Assets (ROA) of 12.76% is strong, reflecting efficient use of all assets to generate profits.
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 shows a solid but leveraged position with sufficient liquidity but a high debt-to-asset ratio, which is common for mature, cash-generative companies and is supported by strong, stable cash flows.
  • As of the latest annual report (2025-12-31), the company's financial health shows a solid but leveraged position.
  • Current ratio of 1.46 indicates sufficient short-term assets to cover short-term liabilities.
  • Quick ratio of 1.25 indicates a comfortable liquidity cushion.
  • Debt-to-asset ratio of 67.30% is notably high.
  • This level of leverage is common for mature, cash-generative companies like KO that utilize debt for shareholder returns and strategic investments.
  • The high leverage increases financial risk but is currently supported by strong and stable cash flows.
  • The balance sheet is structured for a mature corporation—highly leveraged but with strong liquidity.
  • The key risk factor is the sustained high level of debt, which requires consistent profitability to service comfortably.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset73.77%------67.30%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.03------1.46