KO The Coca-Cola Company - Fundamental Analysis
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KO Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Defensive
Beverages - Non-Alcoholic
Current Price
Live
$70.44
Analyst Target
$79.59
+13.0%
Upside
52W High
$74.38
52W Low
$61.37
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$303.15B
P/E
23.32
ROE
42.4%
Profit margin
27.3%
Debt/Equity
1.45
Dividend yield
2.89%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a weak financial health signal with a Piotroski F-Score of just 3/9, indicating significant concerns in profitability, leverage, and operating efficiency. Despite strong historical profitability metrics like a 27.34% profit margin and 42.44% ROE, the company faces headwinds from declining short-term earnings momentum, bearish insider activity, and stretched valuation relative to conservative benchmarks. While the stock trades below the analyst target price of $79.59 and offers a solid 2.89% dividend yield, elevated P/E and Price/Book ratios suggest limited margin of safety. The absence of Altman Z-Score data prevents a full distress risk assessment, but high debt/equity of 1.45 raises leverage concerns.
Key Strengths
Consistently high profitability with 27.34% net margin and industry-leading 61.63% gross margin
Strong return on equity (42.44%) indicating efficient use of shareholder capital
Solid dividend profile with 2.89% yield and long-term payout discipline
Revenue and earnings growth trending positively with 5.10% YoY revenue growth and 30.10% YoY earnings growth
Trading below analyst consensus target price of $79.59, implying 13% upside
Key Risks
Very low Piotroski F-Score of 3/9 signals deteriorating financial health and weak operating performance trends
High valuation with P/E of 23.32 and Price/Book of 9.70 exceeding sector averages and Graham Number of $22.22
Bearish insider sentiment with $18.54M in net officer sales over the last 6 months
Most recent Q/Q EPS growth declined by 5.7%, indicating near-term earnings deceleration
Technical trend score of 0/100 and flat 6M price performance suggest weak momentum
AI Fair Value Estimate
Based on comprehensive analysis
$65.0
-7.7% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
57
Moderate
45
60
70
35
75
AI Verdict
Neutral with value and health concerns
Key drivers: High profitability offset by weak financial health score, Dividend appeal countered by premium valuation, Analyst optimism vs. insider selling divergence, Strong historical performance but recent earnings volatility
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 21.88 below trailing P/E of 23.32 suggests some earnings growth expectation
- Below analyst target price implies potential upside
Watchpoints
- Current price of $70.44 significantly above Graham Number of $22.22
- P/E of 23.32 above sector average of 25.49, but not extreme
- Price/Book of 9.70 well above typical defensive stock norms
Future
60/100
Ref Growth rates
Positives
- 30.10% YoY earnings growth indicates strong recent profitability expansion
- 5.10% revenue growth in line with sector average
Watchpoints
- Q/Q EPS growth of -5.7% shows recent deceleration
- PEG Ratio unavailable limits growth-adjusted valuation insight
Past
70/100
Ref Historical trends
Positives
- 24 out of 25 quarters beat EPS estimates, demonstrating consistent execution
- Average earnings surprise of +3.73% over last 4 quarters
- Long-term price appreciation: +68.8% over 5 years
Watchpoints
- Earnings growth has been volatile, with several double-digit positive surprises followed by recent decline
Health
35/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current ratio of 1.21 indicates basic short-term liquidity
- 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 1.82
- Quick ratio of 0.88 suggests potential liquidity pressure if receivables are delayed
Dividend
75/100
Ref Yield, Payout
Positives
- Dividend yield of 2.89% is attractive in current rate environment
- Payout ratio of 66.72% is sustainable for a mature consumer staple
Watchpoints
- Dividend Strength score of 50/100 suggests uncertainty in long-term growth trajectory
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$70.44
Analyst Target
$79.59
Upside/Downside
+13.0%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for KO and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
KO
The Coca-Cola Company
Primary
|
+68.8% | +25.0% | +16.5% | +2.3% | -0.3% | -0.1% |
|
PG
The Procter & Gamble Company
Peer
|
+22.6% | +3.6% | -7.6% | -6.2% | -2.2% | +1.9% |
|
PM
Philip Morris International Inc.
Peer
|
+153.1% | +89.2% | +25.8% | -7.3% | -1.5% | +1.3% |
|
PEP
PepsiCo, Inc.
Peer
|
+20.2% | -8.2% | +3.8% | +4.2% | -2.5% | +4.6% |
|
COST
Costco Wholesale Corporation
Peer
|
+187.3% | +106.3% | +5.3% | +1.6% | +11.7% | +4.2% |
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
23.32
Forward P/E
21.88
PEG Ratio
N/A
P/B Ratio
9.7
P/S Ratio
6.36
EV/Revenue
7.08
EV/EBITDA
20.69
Market Cap
$303.15B
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 47 companies in the Consumer Defensive sector
(2 bullish, 27 neutral, 18 bearish)
P/E Ratio
23.32
This Stock
vs
33.4
Sector Avg
-30.2%
(Discount)
Return on Equity (ROE)
42.44%
This Stock
vs
4.7%
Sector Avg
+802.7%
(Excellent)
Profit Margin
27.34%
This Stock
vs
-0.64%
Sector Avg
-4395.4%
(Weaker)
Debt to Equity
1.45
This Stock
vs
1.71
Sector Avg
-15.5%
(Lower)
Revenue Growth
5.1%
This Stock
vs
9.94%
Sector Avg
-48.7%
(Slower)
Current Ratio
1.21
This Stock
vs
2.02
Sector Avg
-40.1%
(Weaker)
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 | $303.15B | 23.32 | 42.4% | 27.3% | $70.44 | |
|
PG
The Procter & Gamble Company
|
NEUTRAL | $338.27B | 21.07 | 31.9% | 19.7% | $144.53 | |
|
PM
Philip Morris International Inc.
|
BULLISH | $241.95B | 22.17 | -% | 21.6% | $155.43 | |
|
PEP
PepsiCo, Inc.
|
NEUTRAL | $200.32B | 27.82 | 37.2% | 7.8% | $146.32 | |
|
COST
Costco Wholesale Corporation
|
NEUTRAL | $427.8B | 51.64 | 30.3% | 3.0% | $963.61 |
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 | Sale | 31,625 | $2,250,805 |
| 2025-11-17 | QUAN NANCY W | Officer | Option Exercise | 31,625 | $1,373,632 |
| 2025-11-14 | ARROYO MANUEL | Officer | Sale | 139,689 | $9,890,610 |
| 2025-11-11 | BRAUN HENRIQUE GNANI | Chief Operating Officer | Sale | 40,390 | $2,864,915 |
| 2025-11-11 | BRAUN HENRIQUE GNANI | Chief Operating Officer | Option Exercise | 50,545 | $2,199,466 |
| 2025-10-29 | MURPHY JOHN | President | Gift | 33,000 | - |
| 2025-10-24 | DOUGLAS MONICA HOWARD | Officer | Sale | 13,548 | $947,464 |
| 2025-10-24 | LEVCHIN MAX R | Director | Purchase | 14,267 | $998,676 |
| 2025-10-24 | DOUGLAS MONICA HOWARD | Officer | Option Exercise | 13,548 | $568,245 |
| 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
22 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
Past News Coverage
Recent headlines mentioning KO from our newsroom.
Newest → oldest
No matching news yet.