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Coca-Cola
(NYSE:KO)
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Rating:78Outperform
Price Target:
$90.00
▲(18.83% Upside)
Action:Reiterated
Date:05/02/26
KO scores well primarily on strong financial performance (high margins, improved TTM earnings, solid free cash flow) and a supportive earnings outlook (raised 2026 EPS growth guidance after a strong Q1). The score is held back by leverage-related balance-sheet risk, only moderate technical momentum, and a valuation that looks fair-to-slightly-rich despite the dividend yield.
Positive Factors
High Profitability & Margins
Very high gross and net margins give Coca‑Cola durable pricing power and cash generation. Sustained ~60% gross and ~22–27% net margins support reinvestment in marketing, R&D and distribution, enabling consistent returns and resilience even if revenue growth moderates.
Negative Factors
Elevated Leverage
Higher leverage increases sensitivity to interest‑rate moves and limits financial flexibility. With operating cash flow low relative to debt, the company may face slower deleveraging, constrained buyback or M&A capacity, and greater refinancing risk if conditions tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Very high gross and net margins give Coca‑Cola durable pricing power and cash generation. Sustained ~60% gross and ~22–27% net margins support reinvestment in marketing, R&D and distribution, enabling consistent returns and resilience even if revenue growth moderates.
Read all positive factors
Coca-Cola Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units, highlighting which product lines or services are driving sales and where there might be opportunities or challenges.
Analyzes income from different business units, highlighting which product lines or services are driving sales and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyCoca-Cola (KO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$362.01B
Dividend Yield2.92%
Average Volume (3M)16.48M
Price to Earnings (P/E)26.4
Beta (1Y)0.11
Revenue Growth6.74%
EPS Growth27.16%
CountryUS
Employees65,900
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)3.19
Shares Outstanding4,302,482,400
10 Day Avg. Volume20,754,351
30 Day Avg. Volume16,477,334
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)9.35
Price to Sales (P/S)6.27
P/FCF Ratio56.80
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue7.65
Enterprise Value/Gross Profit12.40
Enterprise Value/Ebitda19.60
Forecast
1Y Price Target
$87.73Price Target Upside15.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)3.27
Revenue Forecast (FY)$49.11B
Coca-Cola Business Overview & Revenue Model
Company Description
The Coca-Cola Company, a beverage company, manufactures and sells various nonalcoholic beverages in the United States and internationally. The company provides Trademark Coca-Cola, sparkling soft drinks and flavors; water, sports, coffee, and tea;...
How the Company Makes Money
Coca-Cola primarily makes money by selling beverage concentrates, syrups, and bases used to produce finished drinks. In its core model, Coca-Cola manufactures concentrates/syrups and sells them to bottling partners, who then produce, package, dist...
Coca-Cola Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a generally strong operational and financial start to 2026: volume growth across markets, a notable 10% organic revenue increase, 18% EPS growth in Q1, operating margin expansion and an upgraded full-year EPS outlook. These positive results are tempered by gross margin pressure driven by commodity and inventory phasing (notably in APAC), regional disruptions (Middle East), production constraints in select North American SKUs, and divestiture and timing headwinds. Management emphasized agility, consumer-centric execution and system-level levers to manage cost and mix, and reiterated confidence in delivering updated guidance despite macro and geopolitical uncertainties.Positive Updates
Volume Growth and Market Share Momentum
Global unit case growth of 3% and the company extended its streak of gaining overall value share for the 20th consecutive quarter; volume grew across all segments and operating units.
Negative Updates
Gross Margin Pressure
Comparable gross margin declined by approximately 30 basis points in Q1, driven primarily by commodity pressures (tea and coffee), phasing of inventory costs (notably juice inventory phasing in China) and timing of trade spend.
Read all updates
Q1-2026 Updates
Positive
Negative
Volume Growth and Market Share Momentum
Global unit case growth of 3% and the company extended its streak of gaining overall value share for the 20th consecutive quarter; volume grew across all segments and operating units.
Read all positive updates
Company Guidance
Management reaffirmed updated 2026 guidance, calling for organic revenue growth of 4–5%, comparable currency‑neutral EPS growth excluding acquisitions/divestitures of 6–7%, and comparable EPS growth of 8–9% versus $3 in 2025 (up from prior 7–8%) driven in part by a lower underlying effective tax rate now expected at 19.9% (‑1 point). They expect divestitures (primarily the potential CCBA sale) to be an ~4‑point headwind to comparable net revenues and ~1 point to comparable EPS, anticipate an approximate 1–2 point currency tailwind to comparable net revenues and ~3 points to comparable EPS, note Q4 will have 6 fewer days (Easter gave ~0.5 point benefit to Q1) and expect concentrate shipments to realign with unit cases by a couple points in Q2. Quarter highlights cited: organic revenues +10%, unit cases +3%, price/mix +2%, comparable gross margin down ~30 bps, comparable operating margin up ~70 bps, comparable Q1 EPS $0.86 (+18% YoY), free cash flow ≈ $1.8B and net debt/EBITDA ~1.6x.Coca-Cola Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.28B | 47.94B | 47.06B | 45.75B | 43.00B | 38.66B |
| Gross Profit | 30.43B | 29.54B | 28.74B | 27.23B | 25.00B | 23.30B |
| EBITDA | 19.24B | 18.70B | 15.82B | 15.61B | 13.83B | 15.47B |
| Net Income | 13.70B | 13.11B | 10.63B | 10.71B | 9.54B | 9.77B |
Balance Sheet | ||||||
| Total Assets | 104.22B | 104.82B | 100.55B | 97.70B | 92.76B | 94.35B |
| Cash, Cash Equivalents and Short-Term Investments | 11.08B | 13.87B | 14.57B | 13.66B | 11.63B | 12.63B |
| Total Debt | 43.89B | 45.49B | 45.73B | 43.43B | 40.60B | 44.23B |
| Total Liabilities | 68.48B | 70.54B | 74.18B | 70.22B | 66.94B | 69.49B |
| Stockholders Equity | 33.63B | 32.17B | 24.86B | 25.94B | 24.11B | 23.00B |
Cash Flow | ||||||
| Free Cash Flow | 12.56B | 5.30B | 4.74B | 9.75B | 9.53B | 11.26B |
| Operating Cash Flow | 14.63B | 7.41B | 6.80B | 11.60B | 11.02B | 12.63B |
| Investing Cash Flow | 4.08B | -67.00M | 2.52B | -3.35B | -763.00M | -2.77B |
| Financing Cash Flow | -16.78B | -8.14B | -6.91B | -8.31B | -10.25B | -6.79B |
Coca-Cola Technical Analysis
Positive
75.74
Price Trends
79.51
Positive
78.08
Positive
73.46
Positive
Market Momentum
0.83
Negative
64.99
Neutral
68.03
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 75.74 is below the 20-day moving average (MA) of 80.78, below the 50-day MA of 79.51, and above the 200-day MA of 73.46, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 68.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KO.
Coca-Cola Risk Analysis
Coca-Cola disclosed 42 risk factors in its most recent earnings report. Coca-Cola 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 Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $95.45B | 46.92 | 25.46% | ― | 18.06% | 36.22% | |
78 Outperform | $362.01B | 26.38 | 43.62% | 2.92% | 6.74% | 27.16% | |
69 Neutral | $197.12B | 22.61 | 43.94% | 3.91% | 4.29% | -6.45% | |
68 Neutral | $45.31B | 24.67 | 7.25% | 3.12% | 9.19% | 21.61% | |
67 Neutral | $3.12B | 17.01 | 35.99% | ― | -1.73% | -1.71% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $13.02B | 25.02 | 122.90% | 0.61% | 8.81% | 14.00% |
* Consumer Defensive Sector Average
KO
Coca-Cola
84.14
14.76
21.27%
COKE
Coca-Cola Bottling Co Consolidated
195.63
78.76
67.39%
KDP
Keurig Dr Pepper
33.30
0.61
1.87%
MNST
Monster Beverage
97.60
34.52
54.72%
FIZZ
National Beverage
33.33
-13.58
-28.95%
PEP
PepsiCo
144.22
14.00
10.75%
Coca-Cola Corporate Events
Executive/Board ChangesShareholder Meetings
Coca-Cola Shareowners Back Board, Reject ESG Proposals
Positive
May 1, 2026
At the 2026 Annual Meeting of Shareowners held on April 29, 2026, Coca-Cola investors re-elected all nominated directors, including CEO James Quincey, with strong majorities, and approved the advisory vote on executive compensation. Shareowners al...
Business Operations and StrategyExecutive/Board Changes
Coca-Cola details executive pay ahead of CEO transition
Neutral
Feb 20, 2026
The Coca-Cola Company confirmed that Executive Vice President and Chief Operating Officer Henrique Braun will become chief executive officer on March 31, 2026, succeeding James Quincey, who will remain as executive chairman of the board. The leade...
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.