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Coca-Cola Europacific Partners (CCEP)
NASDAQ:CCEP
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Coca-Cola Europacific Partners
(NASDAQ:CCEP)
79Outperform
Positive Factors
Market Leadership
CCEP is the market leader in all its major markets, and has been gaining share in more than half of them.
Sales Growth
The strategic CCBPI/Philippines acquisition is expected to drive faster top-line growth.
Stock Index Inclusion
The stock is on a path to being added to the FTSE index, which is expected to increase appreciation for its predictable nature and track record.
Negative Factors
Consumer Demand
Ongoing pressures on the European consumer have weighed on away-from-home demand.
Valuation Concerns
CCEP is already trading above historical average, slightly higher than the believed deserved value.
Coca-Cola Europacific Partners (CCEP) vs. S&P 500 (SPY)
Market Cap
$39.77B
Dividend Yield2.47%
Average Volume (3M)3.22M
Price to Earnings (P/E)25.9
Beta (1Y)0.56
Revenue Growth11.73%
EPS Growth-15.34%
CountryUS
Employees41,000
SectorConsumer Defensive
Sector Strength73
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)3.33
Shares Outstanding460,780,980
10 Day Avg. Volume4,444,000
30 Day Avg. Volume3,222,235
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.91
Price to Cash Flow (P/CF)16.30
P/FCF Ratio23.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$90.98Price Target Upside5.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Coca-Cola Europacific Partners Business Overview & Revenue Model
Company DescriptionCoca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. The company offers flavours, mixers, and energy drinks; soft drinks, waters, enhanced water, and isotonic drinks; and ready-to-drink tea and coffee, juices, and other drinks. It provides its products under the Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Fanta, Sprite, Monster Energy, Coca-Cola Energy, Relentless, nalu, URGE, BURN, Kuli, REIGN, POWERADE, Appletiser, Schweppes, FINLEY, mezzo mix, Royal Bliss, Lift, Vio SCHORLE, Coca-Cola Signature Mixers, NORDIC MIST, smartwater, Chaudfontaine, AQUARIUS, VILAS del Turbon, BONAQUA, Apollinaris, Krystal, Honest, Costa Coffee, Fuzetea, CHAQWA, NESTEA, Capri-Sun, Oasis, Minute Maid, MER, and Tropico brands. In addition, the company engages in the bottling and other operations. As of March 15, 2022, it served approximately 600 million consumers. The company was formerly known as Coca-Cola European Partners plc and changed its name to Coca-Cola Europacific Partners PLC in May 2021. Coca-Cola Europacific Partners PLC was founded in 1986 and is based in Uxbridge, the United Kingdom.
How the Company Makes MoneyCoca-Cola Europacific Partners generates revenue primarily through the manufacturing, distribution, and sale of non-alcoholic beverages. The company's key revenue streams include the sale of carbonated soft drinks, still beverages, and water products. Revenue is driven by volume sales to retailers, wholesalers, and direct-to-consumer channels across its operational territories. CCEP benefits significantly from its strategic partnership with The Coca-Cola Company, which provides exclusive rights to produce and distribute Coca-Cola branded products in specific regions. This partnership, along with a robust distribution network and strong brand portfolio, helps CCEP maximize its market penetration and sales opportunities. Additionally, the company focuses on cost management, efficiency improvements, and sustainability initiatives to enhance profitability.
Coca-Cola Europacific Partners Financial Statement Overview
Summary
Coca-Cola Europacific Partners demonstrates a robust financial profile with consistent revenue growth and improving profitability margins. The balance sheet reflects a stable asset base and improved equity position, though liabilities remain high. Strong cash flow generation supports business operations and financial flexibility.Income Statement
Coca-Cola Europacific Partners has demonstrated solid financial performance with a consistent increase in revenue, growing from $10.61 billion in 2020 to $18.3 billion in 2023. The gross profit margin has improved from 35.2% in 2020 to 36.7% in 2023, indicating effective cost management. Net income margin also rose from 4.7% in 2020 to 9.1% in 2023, showcasing enhanced profitability. EBIT and EBITDA margins have remained strong, reflecting operational efficiency. The company shows robust revenue growth, though the EBITDA margin slightly declined recently.85
Very Positive
Balance Sheet
The company maintains a stable financial position with total assets and stockholders' equity increasing over the years. The debt-to-equity ratio has decreased from 1.18 in 2020 to 1.43 in 2023, indicating a higher reliance on equity financing which reduces financial risk. The equity ratio improved, suggesting a sound capital structure. However, total liabilities remain significant, posing a potential risk if not managed effectively.78
Positive
Cash Flow
Cash flow analysis reveals strong operational cash flows, consistently exceeding net income, which underscores the company's efficient cash generation capabilities. Free cash flow remains positive and stable, although there was a slight decrease in free cash flow growth in the latest year. The operating cash flow to net income ratio indicates a healthy conversion of income to cash. Despite stable cash flows, careful attention is needed in managing capital expenditures and debt servicing.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 19.15B | 18.30B | 17.32B | 13.76B | 10.61B | 11.98B | Gross Profit |
| 6.96B | 6.73B | 6.22B | 5.16B | 3.73B | 4.51B | EBIT |
| 2.32B | 2.34B | 2.09B | 1.77B | 813.00M | 1.65B | EBITDA |
| 2.91B | 2.88B | 2.94B | 2.32B | 1.54B | 2.23B | Net Income Common Stockholders |
| 1.61B | 1.67B | 1.51B | 982.00M | 498.00M | 1.09B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 309.00M | 1.99B | 1.64B | 1.47B | 1.52B | 316.00M | Total Assets |
| 18.22B | 29.25B | 29.31B | 29.09B | 19.24B | 18.69B | Total Debt |
| 5.60B | 11.40B | 11.91B | 13.14B | 7.19B | 6.42B | Net Debt |
| 5.29B | 9.98B | 10.52B | 11.73B | 5.66B | 6.11B | Total Liabilities |
| 11.65B | 21.28B | 21.87B | 21.88B | 13.21B | 12.53B | Stockholders Equity |
| 6.56B | 7.98B | 7.45B | 7.03B | 6.03B | 6.16B |
| Cash Flow | Free Cash Flow | ||||
| 1.82B | 2.13B | 2.33B | 1.77B | 1.08B | 1.21B | Operating Cash Flow |
| 2.62B | 2.81B | 2.93B | 2.12B | 1.49B | 1.81B | Investing Cash Flow |
| -1.70B | -937.00M | -645.00M | -5.61B | -370.00M | -597.27M | Financing Cash Flow |
| -597.00M | -1.82B | -2.28B | 3.29B | 100.00M | -1.21B |
Coca-Cola Europacific Partners Technical Analysis
Positive
86.30
Price Trends
82.58
Positive
79.59
Positive
77.40
Positive
Market Momentum
0.72
Negative
60.05
Neutral
72.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCEP, the sentiment is Positive. The current price of 86.3 is above the 20-day moving average (MA) of 84.48, above the 50-day MA of 82.58, and above the 200-day MA of 77.40, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 60.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCEP.
Coca-Cola Europacific Partners Risk Analysis
Coca-Cola Europacific Partners disclosed 36 risk factors in its most recent earnings report. Coca-Cola Europacific Partners reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coca-Cola Europacific Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $39.77B | 25.88 | 17.43% | 2.47% | 11.73% | -15.34% | |
76 Outperform | $56.31B | 38.99 | 21.27% | ― | 4.94% | -4.13% | |
74 Outperform | $204.72B | 21.48 | 52.42% | 3.57% | 0.42% | 5.77% | |
73 Outperform | $302.84B | 28.60 | 41.86% | 2.76% | 1.96% | -0.45% | |
71 Outperform | $45.78B | 32.04 | 5.77% | 2.64% | 3.62% | -32.23% | |
69 Neutral | $3.92B | 21.12 | 40.81% | ― | 0.34% | 9.48% | |
62 Neutral | $20.67B | 14.36 | -12.41% | 3.14% | 1.24% | 2.53% |
* Consumer Defensive Sector Average
Performance Comparison
CCEP
Coca-Cola Europacific Partners
86.30
18.92
28.08%
KO
Coca-Cola
70.37
11.45
19.43%
KDP
Keurig Dr Pepper
33.74
3.33
10.95%
MNST
Monster Beverage
57.86
0.12
0.21%
FIZZ
National Beverage
41.89
-4.24
-9.19%
PEP
PepsiCo
149.27
-18.14
-10.84%
Coca-Cola Europacific Partners Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: 4.34% | Next Earnings Date: Aug 6, 2025
Earnings Call Sentiment Positive
CCEP reported a strong year with significant revenue growth, impressive free cash flow, and strategic market expansions, particularly in the Philippines. However, challenges in the European and Indonesian markets, along with a product safety issue in Belgium, posed some setbacks.Highlights
Strong Full Year Performance
CCEP delivered a revenue of €20.7 billion for the year, with an increase of 3.5%, in line with guidance. The company also achieved operating profit growth of 8% on a comparable basis.
Impressive Free Cash Flow and Shareholder Returns
CCEP generated comparable free cash flow of €1.8 billion and announced a new €1 billion share buyback program.
Philippines Market Success
The Philippines delivered double-digit volume growth and nearly 300 basis points of value share gains, with a record high 75% Sparkling and 50% NARTD share.
Sustainability Achievements
CCEP retained its inclusion on CDP’s A List for Climate for the ninth year and maintained its MSCI AAA ESG rating.
Strong Performance in APS Markets
APS markets showed a robust performance with volumes up 4.9%, driven by the Philippines and growth in the Pacific Islands and Papua New Guinea.
Lowlights
European Market Challenges
Volumes in Europe were down 2.4% due to strategic delistings, adverse weather, and softer demand in the away-from-home channel.
Indonesia Market Difficulties
Geopolitical events significantly affected Indonesian volumes, leading to a non-cash impairment charge of €175 million.
Product Safety Issue in Belgium
A product safety issue arose with products manufactured in Belgium, which required new protocols to be put in place.
Company Guidance
During the call, Coca-Cola European Partners (CCEP) provided optimistic guidance for the fiscal year 2025, emphasizing robust financial metrics. The company highlighted strong revenue growth, projecting a 4% increase, with a balanced contribution from both volume and revenue per case. Operating profit is expected to grow by approximately 7%, supported by ongoing efficiency programs that delivered €80 million in savings in the past year. CCEP also reported impressive free cash flow of €1.8 billion in 2024 and set guidance for at least €1.7 billion in 2025. Additionally, the company announced a €1 billion share buyback program, reflecting its confidence in continued shareholder value creation. Expansion in high-growth markets, such as the Philippines, contributed significantly, with double-digit volume growth and substantial market share gains. CCEP plans further investments, particularly in the Philippines, to support sustained growth and margin expansion, while maintaining a focus on sustainability and digital advancements.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.