KO The Coca-Cola Company - Fundamental Analysis
NEUTRAL
KO Stock | Fundamental Analysis & Investment Insights
NYSE
•
Consumer Defensive
•
Beverages - Non-Alcoholic
Current Price
$69.12
Analyst Target
$79.61
+15.2% Upside
52W High
$74.38
52W Low
$60.62
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 04, 2026
Market cap
$297.47B
P/E
22.89
ROE
42.4%
Profit margin
27.3%
Debt/Equity
1.45
Dividend yield
2.95%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a mixed health profile: the Piotroski F-Score of 3/9 indicates weak financial health, while the Altman Z-Score of 458439474892.8 suggests an extremely low distress risk, bordering on statistical anomaly. Despite strong profitability metrics and a solid dividend yield, elevated valuation multiples, insider selling, and weakening near-term earnings growth temper optimism. The stock trades above the Graham Number of $22.22 and below the growth-based intrinsic value of $89.09, reflecting a premium for stability and brand strength. However, recent bearish technical trends and declining short-term momentum suggest caution despite long-term resilience.
Key Strengths
Exceptionally high Altman Z-Score indicating virtually no bankruptcy risk
Strong profitability with ROE of 42.44%, ROA of 8.96%, and gross margin of 61.63%
Consistent earnings beat history — 22 out of 25 quarters exceeded estimates
Attractive dividend yield of 2.95% with a sustainable payout ratio of 66.72%
Revenue and earnings growth accelerating year-over-year at 5.10% and 30.10% respectively
Key Risks
Low Piotroski F-Score of 3/9 signals weak financial health and operational deterioration
Elevated valuation with P/E of 22.89 and Price/Book of 9.52 above sector averages
Insider selling activity totaling $18.54M in the last 6 months indicates lack of confidence
Bearish technical trend score of 0/100 and recent price underperformance over 6M and 1M
Most recent Q/Q EPS growth declined by 5.7%, indicating near-term earnings deceleration
AI Fair Value Estimate
Based on comprehensive analysis
$82.5
+19.4% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
61
Strong
55
65
70
40
75
AI Verdict
Neutral with upside potential if execution improves
Key drivers: High profitability and dividend appeal, Exceptional Altman Z-Score, Rich valuation and weak Piotroski score as headwinds, Insider selling pressure, Analyst target implies 15% upside
Confidence
75%
Value
55/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 22.89 is below sector average of 23.83
- Forward P/E of 21.46 suggests modest de-rating expected
Watchpoints
- Price/Book of 9.52 is very high
- Current price ($69.12) is 210% above Graham Number ($22.22)
- No PEG ratio due to inconsistent growth trajectory
Future
65/100
Ref Growth rates
Positives
- YoY earnings growth of 30.10% is robust
- Revenue growth of 5.10% is stable
Watchpoints
- Q/Q EPS growth declined by 5.7%
- No Q/Q revenue data available, raising transparency concerns
Past
70/100
Ref Historical trends
Positives
- 22 out of 25 quarters beat EPS estimates
- Average earnings surprise of +3.73% over last 4 quarters
- Long-term price appreciation: +52.3% over 5 years
Watchpoints
- Recent 6M and 1M returns are negative
- Most recent quarter missed estimates (-1.1%)
Health
40/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Altman Z-Score of 458439474892.8 is astronomically high, indicating no distress risk
- Operating margin of 32.37% reflects pricing power
Watchpoints
- Piotroski F-Score of 3/9 indicates weak financial health
- Debt/Equity of 1.45 is high, though below sector average of 1.97
- Quick ratio of 0.88 suggests liquidity pressure
Dividend
75/100
Ref Yield, Payout
Positives
- Dividend yield of 2.95% is attractive in current rate environment
- Payout ratio of 66.72% is manageable for a mature firm
- Dividend strength score of 50/100 indicates moderate reliability
Watchpoints
- No 5-year average yield provided, limiting trend analysis
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$69.12
Analyst Target
$79.61
Upside/Downside
+15.2%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for KO and closest competitors.
Updated 2026-01-02
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
KO
The Coca-Cola Company
Primary
|
+52.3% | +20.2% | +15.1% | -1.7% | -2.4% | -1.1% |
|
PG
The Procter & Gamble Company
Peer
|
+16.6% | +0.9% | -12.3% | -10.6% | -3.4% | -2.0% |
|
PM
Philip Morris International Inc.
Peer
|
+153.1% | +89.2% | +25.8% | -7.3% | -1.5% | +1.3% |
|
COST
Costco Wholesale Corporation
Peer
|
+137.6% | +96.4% | -5.6% | -13.2% | -7.3% | -2.2% |
|
PEP
PepsiCo, Inc.
Peer
|
+15.0% | -12.5% | -1.5% | +7.1% | -3.0% | -1.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
22.89
Forward P/E
21.46
PEG Ratio
N/A
P/B Ratio
9.52
P/S Ratio
6.24
EV/Revenue
6.96
EV/EBITDA
20.34
Market Cap
$297.47B
Profitability
Profit margins and return metrics
Profit Margin
27.34%
Operating Margin
32.37%
Gross Margin
61.63%
ROE
42.44%
ROA
8.96%
Growth
Revenue and earnings growth rates
Revenue Growth
+5.1%
Earnings Growth
+30.1%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+29.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.45
Moderate
Current Ratio
1.21
Good
Quick Ratio
0.88
Poor
Cash/Share
$3.67
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-10
$N/A
2025-10-21
$0.82
+5.3% surprise
2025-07-22
$0.87
+3.9% surprise
2025-04-29
$0.73
+1.9% surprise
Consumer Defensive Sector Comparison
Comparing KO against 16 companies in the Consumer Defensive sector
(2 bullish, 13 neutral, 1 bearish)
P/E Ratio
22.89
This Stock
vs
24.87
Sector Avg
-8.0%
(Discount)
Return on Equity (ROE)
42.44%
This Stock
vs
50.96%
Sector Avg
-16.7%
(Below Avg)
Profit Margin
27.34%
This Stock
vs
10.39%
Sector Avg
+163.1%
(Superior)
Debt to Equity
1.45
This Stock
vs
1.82
Sector Avg
-20.6%
(Less Debt)
Revenue Growth
5.1%
This Stock
vs
5.11%
Sector Avg
-0.2%
(Slower)
Current Ratio
1.21
This Stock
vs
1.05
Sector Avg
+15.5%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
KO
The Coca-Cola Company
|
NEUTRAL | $297.47B | 22.89 | 42.4% | 27.3% | $69.12 | |
|
PG
The Procter & Gamble Company
|
NEUTRAL | $331.86B | 20.7 | 31.9% | 19.7% | $141.79 | |
|
PM
Philip Morris International Inc.
|
BULLISH | $241.95B | 22.17 | -% | 21.6% | $155.43 | |
|
COST
Costco Wholesale Corporation
|
NEUTRAL | $379.36B | 45.87 | 30.3% | 3.0% | $854.5 | |
|
PEP
PepsiCo, Inc.
|
NEUTRAL | $194.72B | 27.04 | 37.2% | 7.8% | $142.23 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-17 | QUAN NANCY W | Officer | Option Exercise | 31,625 | $1,373,632 |
| 2025-11-17 | QUAN NANCY W | Officer | Sale | 31,625 | $2,250,805 |
| 2025-11-14 | ARROYO MANUEL | Officer | Sale | 139,689 | $9,890,610 |
| 2025-11-11 | BRAUN HENRIQUE GNANI | Chief Operating Officer | Option Exercise | 50,545 | $2,199,466 |
| 2025-11-11 | BRAUN HENRIQUE GNANI | Chief Operating Officer | Sale | 40,390 | $2,864,915 |
| 2025-10-29 | MURPHY JOHN | President | Gift | 33,000 | - |
| 2025-10-24 | DOUGLAS MONICA HOWARD | Officer | Option Exercise | 13,548 | $568,245 |
| 2025-10-24 | DOUGLAS MONICA HOWARD | Officer | Sale | 13,548 | $947,464 |
| 2025-10-24 | LEVCHIN MAX R | Director | Purchase | 14,267 | $998,676 |
| 2025-08-05 | KOUMETTIS NIKOLAOS | Divisional Officer | Sale | 37,396 | $2,584,105 |
| 2025-08-04 | PEREZ BEATRIZ R | Officer | Gift | 43,847 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
23 analysts
B of A Securities
2025-11-07
Buy
Buy
Barclays
2025-10-23
Overweight
Overweight
TD Cowen
2025-10-22
Buy
Buy
Piper Sandler
2025-10-22
Overweight
Overweight
Wells Fargo
2025-10-22
Overweight
Overweight
Wells Fargo
2025-09-25
Overweight
Overweight
UBS
2025-09-11
Buy
Buy
UBS
2025-07-23
Buy
Buy
JP Morgan
2025-07-23
Overweight
Overweight
BNP Paribas
2025-07-21
Outperform
Outperform