Coca-Cola Company (The)
Find Ratings ReportsCOCA-COLA CO's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. COCA-COLA CO has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.61% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 10849.0 | 10125.0 |
EBITDA ($mil) | 2717.0 | 2487.0 |
EBIT ($mil) | 2446.0 | 2180.0 |
Net Income ($mil) | 1973.0 | 2031.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 13663.0 | 11631.0 |
Total Assets ($mil) | 97703.0 | 92763.0 |
Total Debt ($mil) | 43426.0 | 40603.0 |
Equity ($mil) | 25941.0 | 24105.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 59.78 | 58.46 |
EBITDA Margin | 25.04 | 24.56 |
Operating Margin | 22.55 | 21.53 |
Sales Turnover | 0.47 | 0.46 |
Return on Assets | 10.96 | 10.28 |
Return on Equity | 41.3 | 39.59 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.13 | 1.15 |
Debt/Capital | 0.63 | 0.63 |
Interest Expense | 413.0 | 304.0 |
Interest Coverage | 5.92 | 7.17 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 4308.0 | 4328.0 |
Div / share | 0.46 | 0.44 |
EPS | 0.46 | 0.47 |
Book value / share | 6.02 | 5.57 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1.4287785E7 | 1.5711287E7 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 22.25 for the Beverage and Tobacco Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 10.05 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 7.67. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, COCA-COLA CO proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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KO 24.40 | Peers 22.25 | KO 22.47 | Peers 19.91 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. KO is trading at a valuation on par with its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. KO is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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KO 20.13 | Peers 16.98 | KO 1.77 | Peers 1.14 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. KO is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. KO trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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KO 10.05 | Peers 7.67 | KO 12.72 | Peers 357.05 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. KO is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, KO is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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KO 5.70 | Peers 3.77 | KO 6.39 | Peers 9.01 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. KO is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. KO significantly trails its peers on the basis of sales growth. |
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