Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth, expanding profit margins, good cash flow from operations and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for COCA-COLA CO is rather high; currently it is at 64.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.70% is above that of the industry average.
- Net operating cash flow has increased to $3,662.00 million or 15.95% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.72%.
- COCA-COLA CO has improved earnings per share by 5.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COCA-COLA CO reported lower earnings of $1.85 versus $2.53 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $1.85).
The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Coca-Cola has a market cap of $167.03 billion and is part of the consumer goods sector and food & beverage industry. The company has a P/E ratio of 19.4, above the S&P 500 P/E ratio of 17.7. Shares are up 6.4% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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