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Coca-Cola Europacific Partners (CCEP)
NASDAQ:CCEP
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Coca-Cola Europacific Partners
(NASDAQ:CCEP)
Rating:79Outperform
Price Target:
$107.00
▲(6.82%Upside)
Positive Factors
Financial Performance
CCEP stands out as a well-run, consistent compounder with high barriers to entry that can deliver visible double-digit returns in a low-growth environment.
Shareholder Returns
A newly announced €1Bn share repurchase program provides an additional buffer for the company.
Strategic Growth
The strategic acquisition in the Philippines is expected to drive faster top- and bottom-line growth for CCEP.
Negative Factors
Market Valuation
CCEP is already trading above historical average, slightly higher than the believed deserved value.
Operational Challenges
Performance in Indonesia has so far been below expectations due to external headwinds and some international issues.
Volume Pressure
Consolidated volumes were under pressure due to timing impacts and weather-related headwinds.
Coca-Cola Europacific Partners (CCEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.01B
Dividend Yield0.03%
Average Volume (3M)1.65M
Price to Earnings (P/E)29.9
Beta (1Y)0.40
Revenue Growth11.73%
EPS Growth-15.34%
CountryUS
Employees41,000
SectorConsumer Defensive
Sector Strength54
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)2.33
Shares Outstanding460,780,980
10 Day Avg. Volume1,438,875
30 Day Avg. Volume1,652,431
Financial Highlights & Ratios
PEG Ratio-2.30
Price to Book (P/B)4.61
Price to Sales (P/S)0.00
P/FCF Ratio17.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$95.63Price Target Upside-4.53% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Coca-Cola Europacific Partners Business Overview & Revenue Model
Company DescriptionCoca-Cola Europacific Partners (CCEP) is one of the leading consumer goods companies in the world, operating as a prominent bottling partner for The Coca-Cola Company. With a strong presence across Western Europe, Australia, and the Pacific regions, CCEP focuses on the production, distribution, and marketing of a wide array of non-alcoholic ready-to-drink beverages. The company's product portfolio includes sparkling soft drinks, water, sports drinks, energy drinks, and juices, featuring iconic brands like Coca-Cola, Fanta, and Sprite, along with a variety of local brands tailored to regional tastes.
How the Company Makes MoneyCoca-Cola Europacific Partners generates revenue primarily through the sale of its beverage products to retailers, wholesalers, and other distributors. The company operates under a franchise model where it has agreements with The Coca-Cola Company to bottle and sell its products within specific territories. CCEP buys concentrates and syrups from The Coca-Cola Company, which are then mixed, bottled, and sold under the Coca-Cola brand. Revenue streams are heavily dependent on the volume of beverages sold, and CCEP leverages its extensive distribution network to maximize market penetration. Additionally, CCEP benefits from strategic partnerships with retailers and promotional activities that enhance brand visibility and drive sales. The company also invests in marketing and innovation to adapt to changing consumer preferences, including a focus on low- and no-sugar options to meet health-conscious consumer trends.
Coca-Cola Europacific Partners Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Coca-Cola Europacific Partners is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Coca-Cola Europacific Partners is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
Main Street Data
Main Street DataCoca-Cola Europacific Partners Earnings Call Summary
Earnings Call Date:Feb 14, 2025
(Q4-2024)
| % Change Since: 22.37%|
Next Earnings Date:Aug 06, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.Coca-Cola Europacific Partners Financial Statement Overview
Summary
Coca-Cola Europacific Partners demonstrates strong financial health with consistent revenue growth, efficient operational management, and solid cash flow generation. However, opportunities exist to optimize the capital structure by reducing leverage.Income Statement
Coca-Cola Europacific Partners has demonstrated a consistent increase in revenue over the years, with a notable revenue growth rate of 11.66% from 2023 to 2024. Gross profit margin remains strong at 35.64% in 2024, although net profit margin declined slightly to 6.94% due to reduced net income. The EBIT and EBITDA margins are solid, reflecting efficient operational management.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.35, indicating moderate leverage. Return on equity is robust at 16.70%, showcasing effective use of equity. The equity ratio of 27.29% suggests a reliable level of financial stability, though there is room for improvement in reducing debt levels.78
Positive
Cash Flow
Cash flow statements show a strong free cash flow growth rate of 6.36% from 2023 to 2024. The operating cash flow to net income ratio of 2.16 signifies good cash conversion, while the free cash flow to net income ratio of 1.60 indicates solid cash generation capabilities relative to profit, supporting continued investment and debt repayment.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.44B | 18.30B | 17.32B | 13.76B | 10.61B |
| Gross Profit | 7.28B | 6.73B | 6.22B | 5.16B | 3.73B |
| EBITDA | 3.27B | 2.88B | 2.94B | 2.32B | 1.54B |
| Net Income | 1.42B | 1.67B | 1.51B | 982.00M | 498.00M |
Balance Sheet | |||||
| Total Assets | 31.10B | 29.25B | 29.31B | 29.09B | 19.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.71B | 1.99B | 1.64B | 1.47B | 1.52B |
| Total Debt | 11.33B | 11.40B | 11.91B | 13.14B | 7.19B |
| Total Liabilities | 22.11B | 21.28B | 21.87B | 21.88B | 13.21B |
| Stockholders Equity | 8.49B | 7.98B | 7.45B | 7.03B | 6.03B |
Cash Flow | |||||
| Free Cash Flow | 2.27B | 2.13B | 2.33B | 1.77B | 1.08B |
| Operating Cash Flow | 3.06B | 2.81B | 2.93B | 2.12B | 1.49B |
| Investing Cash Flow | -1.96B | -937.00M | -645.00M | -5.61B | -370.00M |
| Financing Cash Flow | -973.00M | -1.82B | -2.28B | 3.29B | 100.00M |
Coca-Cola Europacific Partners Technical Analysis
Positive
100.17
Price Trends
92.70
Positive
89.20
Positive
83.15
Positive
Market Momentum
1.83
Negative
73.81
Negative
95.09
Negative
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 100.17 is above the 20-day moving average (MA) of 95.61, above the 50-day MA of 92.70, and above the 200-day MA of 83.15, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 73.81 is Negative, neither overbought nor oversold. The STOCH value of 95.09 is Negative, 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $46.01B | 29.95 | 17.43% | 0.03% | 11.73% | -15.34% | |
77 Outperform | $45.50B | 30.34 | 6.18% | 2.74% | 4.63% | -28.22% | |
76 Outperform | $9.96B | 19.87 | 36.83% | 5.00% | 3.21% | 31.84% | |
76 Outperform | $57.72B | 39.08 | 20.00% | ― | 1.47% | -4.87% | |
74 Outperform | $197.85B | 26.56 | 39.88% | 3.80% | -0.34% | -20.51% | |
73 Outperform | $297.68B | 24.53 | 44.76% | 2.88% | 1.34% | 14.67% | |
68 Neutral | ¥197.01B | 21.38 | 8.29% | 2.28% | 4.93% | 0.72% |
* Consumer Defensive Sector Average
Performance Comparison
CCEP
Coca-Cola Europacific Partners
100.17
29.50
41.74%
COKE
Coca-Cola Bottling Co Consolidated
111.81
2.08
1.90%
KO
Coca-Cola
69.10
4.91
7.65%
KDP
Keurig Dr Pepper
33.57
1.25
3.87%
MNST
Monster Beverage
60.18
10.08
20.12%
PEP
PepsiCo
144.51
-20.50
-12.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.