Coca-Cola (KO)
NYSE:KO
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Coca-Cola
(NYSE:KO)
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Rating:76Outperform
Price Target:
$88.00
▲(13.96% Upside)
Action:ReiteratedDate:02/11/26
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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Coca-Cola (KO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$332.10B
Dividend Yield2.92%
Average Volume (3M)17.07M
Price to Earnings (P/E)23.0
Beta (1Y)0.16
Revenue Growth2.93%
EPS Growth25.42%
CountryUS
Employees69,700
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.58
Shares Outstanding4,300,723,000
10 Day Avg. Volume17,462,312
30 Day Avg. Volume17,065,203
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 Cap1.09
Enterprise Value/Revenue7.54
Enterprise Value/Gross Profit12.24
Enterprise Value/Ebitda19.34
Forecast
1Y Price Target
$85.50Price Target Upside10.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)3.23
Revenue Forecast (FY)$49.04B
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 plan...
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 manu...
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 Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call emphasized strong financial and strategic progress—organic revenue growth in line with the long-term algorithm, comparable EPS inflection to $3, margin expansion, robust free cash flow, low leverage, continued brand-building (32 billion-dollar brands) and multi-market share gains. Management acknowledged near-term volume and regional softness (flat annual volume, Asia Pacific weakness, India/China variability) plus notable headwinds from currency, mix effects and divestitures, as well as the need to improve innovation speed. Guidance for 2026 balances prudence with continued investment and targets further top-line and EPS growth, reflecting confidence in execution while recognizing several manageable risks and timing impacts.Positive Updates
Organic Revenue and EPS Growth
Organic revenue growth of 5% in the fourth quarter; full-year organic growth in 2025 was in line with the company's long-term growth algorithm (guidance 4%-5%). Comparable EPS reached $3.00 for full-year 2025 (an inflection from ~ $2 historically) with ~4% comparable EPS growth in 2025; Q4 comparable EPS was $0.58, up 6% year-over-year despite currency headwinds.
Negative Updates
Flat Total Volume and Select Market Softness
Unit case volume was flat for full-year 2025 (Q4 unit case growth only 1%). Asia Pacific reported flat volume but declining revenue and profit during the quarter; China and several ASEAN markets showed softer consumer spending and weaker industry performance. India experienced industry and weather impacts during 2025 that weighed on volume.
Read all updates
Q4-2025 Updates
Positive
Negative
Organic Revenue and EPS Growth
Organic revenue growth of 5% in the fourth quarter; full-year organic growth in 2025 was in line with the company's long-term growth algorithm (guidance 4%-5%). Comparable EPS reached $3.00 for full-year 2025 (an inflection from ~ $2 historically) with ~4% comparable EPS growth in 2025; Q4 comparable EPS was $0.58, up 6% year-over-year despite currency headwinds.
Read all positive updates
Company Guidance
Management guided 2026 organic revenue growth of 4–5% and comparable currency‑neutral EPS growth (ex‑acquisitions/divestitures) of 5–6%, with all‑in comparable EPS expected to rise 7–8% versus $3 in 2025 (implying roughly $3.21–$3.24); they forecast a ~1‑point currency tailwind to comparable net revenues and ~3‑point currency tailwind to comparable EPS, partly offset by divestitures modeled as an ~4‑point headwind to comparable net revenues and ~1‑point headwind to comparable EPS (assumes Coca‑Cola Beverages sale in H2 2026), and an underlying effective tax rate of 20.9%. They expect about $12.2B of free cash flow in 2026 (≈$14.4B cash from operations less ≈$2.2B capex, ~25% of capex tied to company‑owned bottlers); 2025 adjusted FCF conversion was 93% and net debt leverage stood at 1.6x EBITDA. Management reiterated a commitment to grow the dividend (2025 dividends were 73% of adjusted FCF vs a long‑term ~75% payout), to remain opportunistic on M&A and buybacks, and noted calendar timing (Q1 +6 days, Q4 −6 days) and lost equity income from recent divestitures as timing considerations.Coca-Cola Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| 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
Positive
77.22
Price Trends
76.83
Positive
73.43
Positive
70.46
Positive
Market Momentum
-0.16
Negative
55.79
Neutral
85.51
Negative
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 77.22 is above the 20-day moving average (MA) of 76.28, above the 50-day MA of 76.83, and above the 200-day MA of 70.46, indicating a bullish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 85.51 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $72.55B | 39.27 | 25.65% | ― | 7.62% | 12.77% | |
76 Outperform | $332.10B | 22.95 | 44.35% | 2.92% | 2.93% | 25.42% | |
70 Outperform | $214.19B | 23.86 | 43.03% | 3.91% | 0.48% | -22.61% | |
69 Neutral | $3.20B | 19.35 | 35.99% | ― | 0.97% | 0.36% | |
68 Neutral | $13.18B | 19.79 | 56.69% | 0.61% | 4.22% | 22.24% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $34.92B | 18.30 | 8.29% | 3.12% | 6.77% | -29.84% |
* Consumer Defensive Sector Average
KO
Coca-Cola
77.22
10.73
16.13%
COKE
Coca-Cola Bottling Co Consolidated
197.97
69.52
54.12%
KDP
Keurig Dr Pepper
25.70
-6.78
-20.87%
MNST
Monster Beverage
74.16
19.15
34.81%
FIZZ
National Beverage
34.13
-7.32
-17.66%
PEP
PepsiCo
156.73
21.83
16.18%
Coca-Cola Corporate Events
Business Operations and StrategyExecutive/Board Changes
Coca-Cola Reshapes Leadership to Drive Global Digital Growth
Positive
Jan 14, 2026
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 ...
Business Operations and StrategyExecutive/Board Changes
Coca-Cola Announces New CEO Appointment
Positive
Dec 10, 2025
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 t...
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.