Coca-Cola Co

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KO : NYSE : Consumer Goods
$41.78 | %
Today's Range: 41.6 - 41.91
Avg. Daily Volume: 1.45007E7
02/24/17 - 4:00 PM ET

Financial Analysis


COCA-COLA CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. COCA-COLA CO has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 9.75% 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 FY16 Q4 FY15
Net Sales ($mil)9409.010000.0
EBITDA ($mil)2500.02501.0
EBIT ($mil)2036.01974.0
Net Income ($mil)550.01237.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)22201.019900.0
Total Assets ($mil)87270.090093.0
Total Debt ($mil)45709.044213.0
Equity ($mil)23062.025554.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin64.6164.73
EBITDA Margin26.5725.01
Operating Margin21.6419.74
Sales Turnover0.480.49
Return on Assets7.478.15
Return on Equity28.328.76
Debt Q4 FY16 Q4 FY15
Current Ratio1.281.24
Debt/Capital0.660.63
Interest Expense248.0143.0
Interest Coverage8.2113.8


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)4288.04324.0
Div / share0.350.33
EPS0.130.28
Book value / share5.385.91
Institutional Own % n/a n/a
Avg Daily Volume1.4279207E71.2755976E7

Valuation


HOLD. COCA-COLA CO's P/E ratio indicates a discount compared to an average of 31.85 for the Beverages industry and a value on par with the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 7.66 indicates a significant premium versus the S&P 500 average of 2.94 and a discount versus the industry average of 8.16. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, COCA-COLA CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KO 27.47 Peers 31.85   KO 20.08 Peers 20.64

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KO is trading at a discount to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KO 21.24 Peers 24.91   KO 1.08 Peers 2.19

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KO is trading at a discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KO 7.66 Peers 8.16   KO -10.18 Peers 7.14

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KO is trading at a valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KO 4.22 Peers 4.28   KO -5.49 Peers 2.07

Average. 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 valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KO significantly trails its peers on the basis of sales growth

 

 

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