Coca-Cola Europacific Partners (CCEP) AI Stock Analysis

• Market Cap: $40.82B
• Dividend Yield: 2.39%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.40
• Revenue Growth: 11.73%
• EPS Growth: -15.34%
• Country: US
• Employees: 41,000
• Sector: Consumer Defensive
• Sector Strength: 72
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 2.22
• Shares Outstanding: 460,780,980
• 10 Day Avg. Volume: 1,496,650
• 30 Day Avg. Volume: 1,669,628
• PEG Ratio: -2.15
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $93.99
• Price Target Upside: 6.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 79 Outperform
• Price Target: ―

Coca-Cola Europacific Partners exhibits strong financial performance and positive earnings guidance, which supports a high overall score. The technical indicators reflect a favorable market trend, though the valuation is somewhat elevated, which tempers the overall enthusiasm. Challenges in certain markets are noted but are being addressed, maintaining a balanced outlook.

Positive Factors

Corporate Strategy

A newly announced €1Bn share repurchase program provides an additional buffer for the company.

Financial Performance

Management reiterated the mid-term guidance of around 4% revenue growth, 7% EBIT, and at least €1.7bn FCF per annum, viewing it as sustainable with ambitions for more.

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 been below expectations due to external headwinds and international issues.

Volume Pressures

Consolidated volumes were under pressure due to timing impacts and weather-related headwinds.

Coca-Cola Europacific Partners Business Overview & Revenue Model

Company Description

Coca-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 Money

Coca-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 strong financial health with consistent revenue growth, efficient operational management, and solid cash flow generation. The balance sheet is stable, though there is room for improvement in 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.

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.

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.

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
	EBIT
2.13B	2.34B	2.09B	1.77B	813.00M
	EBITDA
3.27B	2.88B	2.94B	2.32B	1.54B
	Net Income Common Stockholders
1.42B	1.67B	1.51B	982.00M	498.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.71B	1.99B	1.64B	1.47B	1.52B
	Total Assets
31.10B	29.25B	29.31B	29.09B	19.24B
	Total Debt
11.33B	11.40B	11.91B	13.14B	7.19B
	Net Debt
9.77B	9.98B	10.52B	11.73B	5.66B
	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

• Technical Analysis Sentiment: Positive
• Last Price: 88.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 88.59 is above the 20-day moving average (MA) of 88.34, above the 50-day MA of 86.61, and above the 200-day MA of 79.63, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 83.66 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KO	80 Outperform	$308.57B	28.70	40.98%	2.73%	1.15%	0.28%
CCEP	79 Outperform	$40.82B	26.57	17.43%	2.39%	11.73%	-15.34%
MNST	76 Outperform	$61.31B	41.51	20.00%	―	1.47%	-4.87%
PEP	75 Outperform	$178.40B	19.13	50.06%	4.16%	-0.38%	2.23%
KDP	73 Outperform	$44.83B	29.90	6.13%	2.69%	3.95%	-28.73%
COKE	69 Neutral	$9.85B	19.65	36.83%	0.71%	3.21%	31.83%
Sector *	64 Neutral	$8.78B	14.55	4.78%	173.91%	3.39%	2.17%