Coca Cola Co

KO

Beverages

Mkt Cap

$266.4B

PE

24.73

Debt

$37.89B

Cash

$10.82B

EV

$293.5B

FCF

$10.02B

Market Cap

$266.4B

P/E Ratio

24.73

Debt

$37.89B

Cash

$10.82B

EV

$293.5B

FCF

$10.02B

Charts data: {"Earnings":[{"time":"2014-12-30","value":7098000000},{"time":"2015-12-30","value":7351000000},{"time":"2016-12-30","value":6527000000},{"time":"2017-12-30","value":1248000000},{"time":"2018-12-30","value":6434000000},{"time":"2019-12-30","value":8920000000},{"time":"2020-12-30","value":7747000000},{"time":"2021-12-30","value":9771000000},{"time":"2022-12-30","value":9542000000},{"time":"2023-12-30","value":10703000000}],"Sales":[{"time":"2014-12-30","value":45998000000},{"time":"2015-12-30","value":44294000000},{"time":"2016-12-30","value":41863000000},{"time":"2017-12-30","value":35410000000},{"time":"2018-12-30","value":31856000000},{"time":"2019-12-30","value":37266000000},{"time":"2020-12-30","value":33014000000},{"time":"2021-12-30","value":38655000000},{"time":"2022-12-30","value":43004000000},{"time":"2023-12-30","value":45754000000}],"Net Margins":[{"time":"2014-12-30","value":0.15431105700247838},{"time":"2015-12-30","value":0.16595927213618097},{"time":"2016-12-30","value":0.15591333635907603},{"time":"2017-12-30","value":0.035244281276475574},{"time":"2018-12-30","value":0.2019713711702662},{"time":"2019-12-30","value":0.23936027478130198},{"time":"2020-12-30","value":0.23465802386866177},{"time":"2021-12-30","value":0.2527745440434614},{"time":"2022-12-30","value":0.2218863361547763},{"time":"2023-12-30","value":0.23392490274074398}],"Assets":[{"time":"2014-12-30","value":92023000000},{"time":"2015-12-30","value":90093000000},{"time":"2016-12-30","value":87270000000},{"time":"2017-12-30","value":87896000000},{"time":"2018-12-30","value":83216000000},{"time":"2019-12-30","value":86381000000},{"time":"2020-12-30","value":87296000000},{"time":"2021-12-30","value":94354000000},{"time":"2022-12-30","value":92763000000},{"time":"2023-12-30","value":97703000000}],"Stockholders Equity":[{"time":"2014-12-30","value":30561000000},{"time":"2015-12-30","value":25764000000},{"time":"2016-12-30","value":23220000000},{"time":"2017-12-30","value":18977000000},{"time":"2018-12-30","value":19058000000},{"time":"2019-12-30","value":21098000000},{"time":"2020-12-30","value":21284000000},{"time":"2021-12-30","value":24860000000},{"time":"2022-12-30","value":25826000000},{"time":"2023-12-30","value":27480000000}],"ROE":[{"time":"2014-12-30","value":0.23225679787965053},{"time":"2015-12-30","value":0.2853206023909331},{"time":"2016-12-30","value":0.28109388458225665},{"time":"2017-12-30","value":0.06576381936027823},{"time":"2018-12-30","value":0.33760100745093924},{"time":"2019-12-30","value":0.4227888899421746},{"time":"2020-12-30","value":0.3639823341477166},{"time":"2021-12-30","value":0.3930410297666935},{"time":"2022-12-30","value":0.3694726244869511},{"time":"2023-12-30","value":0.38948326055312954}],"ROA":[{"time":"2014-12-30","value":0.1054953652891125},{"time":"2015-12-30","value":0.10661205643057729},{"time":"2016-12-30","value":0.09884267216683855},{"time":"2017-12-30","value":0.08533949212705925},{"time":"2018-12-30","value":0.10454720246106518},{"time":"2019-12-30","value":0.12486542179414455},{"time":"2020-12-30","value":0.11167751099706745},{"time":"2021-12-30","value":0.13168493121648261},{"time":"2022-12-30","value":0.12597695201750697},{"time":"2023-12-30","value":0.13256501847435595}]}

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Diet Coke, Cherry Coke, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Dasani, dogadan, FUZE TEA, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, and Minute Maid Pulpy brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

Sector

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10-Q
3/30/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Coca Cola Co

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$10.02B	$10.65B	$11.3B	$11.97B	$12.67B	$13.39B	$14.14B	$14.9B	$15.69B	$16.49B	$17.32B	$173.2B
DCF		$9.258B	$8.542B	$7.872B	$7.244B	$6.658B	$6.111B	$5.602B	$5.128B	$4.688B	$4.281B	$42.81B
Value	$108.2B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 10%

Earnings Stability 24%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	17%	16%	3.5%	20%	24%	23%	25%	22%	23%	23%
ROA	11%	9.9%	8.5%	10%	12%	11%	13%	13%	13%	13%
ROE	29%	28%	6.6%	34%	42%	36%	39%	37%	39%	39%

What is the average Net Margin?

The average Net Margin over the past 5 years is +23.08%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.36%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.19%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.47%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +37.94%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.37%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	4.23	5.62	8.96	7.29	5.08	4.94	3.80	4.11	4.05	3.78
Debt Equity	1.31	1.58	2.51	2.29	2.03	2.01	1.72	1.52	1.44	1.36
MIN
Graham Stability	-	-	18%	100%	100%	100%	100%	100%	100%	18%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.78.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.58.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.18.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	1.3%	7.5%	11%	6.4%	2.6%
Net Income	7.3%	11%	11%	12%	-2.6%
Stockholders Equity	2.4%	7.6%	8.9%	6.4%	3.3%
FCF	5.9%	10%	4%	2.2%	1.9%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.51%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.57%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +10.71%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.56%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +7.59%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +3.34%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +10.29%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +1.94%.