Coca-Cola Co

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KO : NYSE : Consumer Goods
$43.15 | %
Today's Range: 42.85 - 43.2
Avg. Daily Volume: 1.48287E7
04/28/17 - 4:00 PM ET

Financial Analysis


COCA-COLA CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. COCA-COLA CO has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.18% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)9118.010282.0
EBITDA ($mil)2595.02910.0
EBIT ($mil)2267.02452.0
Net Income ($mil)1182.01483.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)25205.022211.0
Total Assets ($mil)91201.091263.0
Total Debt ($mil)47449.046834.0
Equity ($mil)22876.024914.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin65.164.88
EBITDA Margin28.4628.3
Operating Margin24.8623.85
Sales Turnover0.450.48
Return on Assets6.827.97
Return on Equity27.2129.2
Debt Q1 FY17 Q1 FY16
Current Ratio1.41.18
Debt/Capital0.670.65
Interest Expense192.0141.0
Interest Coverage11.8117.39


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)4273.04332.0
Div / share0.370.35
EPS0.270.34
Book value / share5.355.75
Institutional Own % n/a n/a
Avg Daily Volume1.4789232E71.3583247E7

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 53.63 for the Beverages industry and a premium compared to the S&P 500 average of 25.27. Conducting a second comparison, its price-to-book ratio of 8.03 indicates a significant premium versus the S&P 500 average of 3.03 and a premium versus the industry average of 7.40. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KO 30.08 Peers 53.63   KO 20.52 Peers 21.08

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

KO is trading at a significant 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 22.06 Peers 23.81   KO 1.13 Peers 1.48

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

KO is trading at a valuation on par with 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KO 8.03 Peers 7.40   KO -13.86 Peers 3.44

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 4.52 Peers 4.41   KO -7.22 Peers 3.86

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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