Coca-Cola (KO) AI Stock Analysis

• Market Cap: $341.93B
• Dividend Yield: 2.92%
• Average Volume (3M): 18.68M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.13
• Revenue Growth: 2.93%
• EPS Growth: 25.42%
• Country: US
• Employees: 69,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.58
• Shares Outstanding: 4,301,609,000
• 10 Day Avg. Volume: 19,037,980
• 30 Day Avg. Volume: 18,683,936
• PEG Ratio: 0.98
• Price to Book (P/B): 9.35
• Price to Sales (P/S): 6.27
• P/FCF Ratio: 56.80
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 7.90
• Enterprise Value/Gross Profit: 12.82
• Enterprise Value/Ebitda: 20.51
• 1Y Price Target: $84.93
• Price Target Upside: 6.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $88.00 ▲(10.22% Upside)

The score is driven primarily by strong underlying profitability and a constructive earnings outlook (continued organic growth and EPS expansion with strong free cash flow guidance). Technicals remain supportive but are near-term overbought, while valuation is a modest drag due to the higher P/E despite the dividend yield.

Positive Factors

High Profitability & Margins

Sustained high gross and net margins reflect strong pricing power, category mix and operational efficiency. These durable margins support shareholder returns, fund innovation and marketing, and provide resilience through cycles, underpinning long-term cash generation capacity.

Refranchising Strategy

Progress on refranchising transfers capital-intensive operations to local partners, converting cash and equity into higher-margin concentrate sales. This structural shift lowers capex needs, boosts capital efficiency and enables focus on brand, innovation and scalable global distribution.

Consistent Value Share Gains

Long streak of value-share gains signals durable brand strength, effective marketing and execution across channels. Persistent share growth supports pricing leverage, innovation uptake and margin sustainability, reinforcing a defendable competitive moat over time.

Negative Factors

Relatively High Financial Leverage

Elevated debt-to-equity and reported net-debt/EBITDA (~1.8x) constrain financial flexibility and increase sensitivity to higher rates or earnings shocks. Higher leverage can limit strategic optionality for M&A, buybacks or aggressive investment during downturns.

Weaker Free Cash Flow Trends

A notable decline in free cash flow growth reduces capacity to sustainably fund dividends, repurchases and reinvestment. Even with solid profitability, weaker cash conversion raises execution risk on long-term initiatives and heightens reliance on external financing.

Regional Volume Pressure

Persistent volume softness in key emerging markets and mixed performance in Europe signal structural demand headwinds that could slow top-line momentum. Prolonged regional weakness risks margin dilution and limits the ability of global initiatives to fully offset local declines.

Coca-Cola Business Overview & Revenue Model

Company Description

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Dasani, dogadan, FUZE TEA, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, and Minute Maid Pulpy brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Coca-Cola generates revenue primarily through the sale of its beverages across various markets. The company's revenue model is multifaceted, with key revenue streams coming from the sale of concentrate and syrup to bottling partners, who then manufacture, package, and distribute the final products. Additionally, Coca-Cola earns revenue from the sale of finished products directly to retailers, food service establishments, and vending machine operators. Strategic partnerships with bottling companies, distribution networks, and retailers are critical to Coca-Cola's success, enabling it to reach consumers effectively. The company's marketing efforts, brand equity, and innovation in product offerings further contribute to its earnings by driving consumer demand and expanding market presence.

Coca-Cola Financial Statement Overview

Summary

Profitability is strong with consistently high gross margins and a rising net margin, but the profile is held back by structurally elevated leverage and weaker/recently more volatile operating and free cash flow versus prior years.

Income Statement

Coca-Cola shows strong and improving profitability with consistently high gross margins (~58%–62%) and a rising net margin (from ~22% in 2022 to ~27% in 2025). Revenue has grown steadily from 2021–2024 and then accelerated sharply in 2025 (per the provided growth rate), while operating profitability remains solid (~29%–36% EBIT margin range). The main watch-out is that growth rates appear volatile year-to-year (including a 2020 decline and an unusually high 2025 growth figure), which can create uncertainty around the sustainability of the latest step-up.

Balance Sheet

The balance sheet reflects meaningful leverage: debt-to-equity stays elevated (roughly ~1.4x to ~2.3x over the period), although it improves notably in 2025 versus 2024. Returns on equity are very strong (~40%+), supporting the quality of earnings and capital efficiency, and total assets trend upward over time. The key risk is that leverage remains structurally high, which can limit flexibility if operating conditions weaken or financing costs rise.

Cash Flow

Cash generation is positive, but weaker and more volatile in the most recent year: operating cash flow fell materially in 2024–2025 versus 2021–2023, and free cash flow declined as well (including a steep negative growth rate in 2025). Free cash flow covers a solid portion of net income (generally ~70%–89%), indicating earnings are reasonably cash-backed. However, the lower operating cash flow relative to EBIT in 2024–2025 versus prior years suggests reduced cash conversion recently, which is the primary drag on the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.94B	47.06B	45.75B	43.00B	38.66B
Gross Profit	29.54B	28.74B	27.23B	25.00B	23.30B
EBITDA	18.70B	15.82B	15.61B	13.83B	15.47B
Net Income	13.11B	10.63B	10.71B	9.54B	9.77B
Balance Sheet
Total Assets	104.82B	100.55B	97.70B	92.76B	94.35B
Cash, Cash Equivalents and Short-Term Investments	13.87B	14.57B	13.66B	11.63B	12.63B
Total Debt	45.49B	45.73B	43.43B	40.60B	44.23B
Total Liabilities	70.54B	74.18B	70.22B	66.94B	69.49B
Stockholders Equity	32.17B	24.86B	25.94B	24.11B	23.00B
Cash Flow
Free Cash Flow	5.30B	4.74B	9.75B	9.53B	11.26B
Operating Cash Flow	7.41B	6.80B	11.60B	11.02B	12.63B
Investing Cash Flow	-67.00M	2.52B	-3.35B	-763.00M	-2.77B
Financing Cash Flow	-8.14B	-6.91B	-8.31B	-10.25B	-6.79B

Coca-Cola Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KO, the sentiment is Positive. The current price of 79.84 is above the 20-day moving average (MA) of 76.41, above the 50-day MA of 72.63, and above the 200-day MA of 69.70, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 67.18 is Neutral, neither overbought nor oversold. The STOCH value of 75.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KO.

Coca-Cola Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNST	82 Outperform	$81.27B	46.68	25.54%	―	7.62%	12.77%
KO	76 Outperform	$341.93B	26.15	45.97%	2.92%	2.93%	25.42%
KDP	70 Outperform	$39.59B	25.11	6.29%	3.12%	6.77%	-29.84%
FIZZ	70 Outperform	$3.45B	18.36	40.93%	―	0.97%	0.36%
PEP	70 Outperform	$224.66B	27.39	42.86%	3.91%	0.48%	-22.61%
COKE	68 Neutral	$14.55B	25.03	168.34%	0.61%	4.22%	22.24%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Coca-Cola Corporate Events

Coca-Cola Reshapes Leadership to Drive Global Digital Growth

On January 14, 2026, The Coca-Cola Company announced a major reshaping of its operational leadership to strengthen consumer focus and accelerate digital transformation, effective March 31, 2026. The company is creating a new Chief Digital Officer role, appointing Sedef Salingan Sahin to lead end-to-end digitalization and data integration across the enterprise, while digital strategy responsibilities shift from President and CFO John Murphy to Sahin. Customer and Commercial Leadership duties will move from Murphy to Executive Vice President and Chief Marketing Officer Manolo Arroyo, who will become Executive Vice President and Chief Marketing and Customer Commercial Officer, while Murphy remains President and CFO overseeing core corporate functions. Concurrently, Coca-Cola is reorganizing market groupings in Asia, Africa and the Middle East, with Sanket Ray assuming responsibility for India, Southwest Asia and other emerging large markets, and Claudia Lorenzo taking charge of Eurasia, the Middle East, ASEAN, South Pacific and Africa as president of the Eurasia and Middle East operating unit and Emerging Multi-Markets Lead. These moves, alongside the previously announced elevation of Henrique Braun to CEO on March 31, 2026 and the appointment of Robin Halpern as his incoming chief of staff, signal Coca-Cola’s bid to deepen regional focus, respond more nimbly to dynamic market conditions and capture growth potential in high-opportunity geographies while embedding digital capabilities at the core of its global operations.

The most recent analyst rating on (KO) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Coca-Cola stock, see the KO Stock Forecast page.

Coca-Cola Announces New CEO Appointment

On December 10, 2025, Coca-Cola announced that Henrique Braun will succeed James Quincey as CEO effective March 31, 2026, with Quincey transitioning to Executive Chairman. Braun, who has been with the company since 1996, will focus on leveraging technology and consumer insights to drive growth, building on Quincey’s successful transformation of Coca-Cola into a more agile and consumer-focused company.

The most recent analyst rating on (KO) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Coca-Cola stock, see the KO Stock Forecast page.