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Coca-Cola (KO)
NYSE:KO
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Coca-Cola (KO) AI Stock Analysis

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KO

Coca-Cola

(NYSE:KO)

Rating:73Outperform
Price Target:
$77.00
▲(11.43%Upside)
Coca-Cola achieves a solid overall stock score, driven by strong financial performance and positive earnings call sentiment. Despite cash flow challenges, the company's profitability and growth potential are promising. Technical analysis provides a neutral outlook, with valuation suggesting a balance between premium pricing and an attractive dividend yield. Strategic initiatives and market resilience contribute to a strong outlook.
Positive Factors
Earnings Performance
Coca-Cola delivered an impressive Q2 earnings beat, providing high visibility for full-year earnings per share.
Pricing Power
Coca-Cola has earned pricing power through higher and more effective marketing, innovation, and solid execution.
Strategic Initiatives
Coca-Cola's new Fairlife capacity is expected to ramp up, potentially re-accelerating North America volumes and mix.
Negative Factors
Global Market Conditions
Global consumer uncertainty remains a risk, which could impact future performance.
Market Performance
Coca-Cola shares underperformed due to an elevated bar and a miss versus street expectations on Unit Case Volumes.
Volume Trends
Volume trends weakened sequentially due to adverse weather events and consumer softness, notably in Mexico.

Coca-Cola (KO) vs. SPDR S&P 500 ETF (SPY)

Coca-Cola Business Overview & Revenue Model

Company DescriptionThe Coca-Cola Company, headquartered in Atlanta, Georgia, is a leading global beverage corporation. It operates in the non-alcoholic beverage sector and is best known for producing the iconic Coca-Cola soft drink. The company offers a diverse portfolio of over 500 brands, including sparkling beverages, water, sports drinks, tea, juice, dairy, and plant-based options. With a presence in more than 200 countries, Coca-Cola's core operations involve manufacturing, distributing, and marketing beverage concentrates and syrups.
How the Company Makes MoneyCoca-Cola primarily generates revenue through the sale of beverage concentrates and syrups to authorized bottling partners who manufacture, package, and distribute the final products to retailers and consumers. This franchised bottling system allows Coca-Cola to leverage its brand and marketing expertise while bottlers handle production and distribution logistics. Additionally, Coca-Cola earns revenue from direct sales of finished beverages to retailers, restaurants, and other outlets. Strategic partnerships and joint ventures, such as those with McDonald's and other major chains, further enhance its market presence and drive sales. The company's earnings are also bolstered by continuous innovation in product offerings and expansion into emerging markets, increasing brand visibility and consumer reach.

Coca-Cola Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
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.
Chart InsightsCoca-Cola's North America segment shows robust revenue growth despite recent volume challenges, driven by strategic marketing and price mix improvements. The Asia-Pacific region continues to excel, contributing significantly to overall performance. However, Bottling Investments are declining, reflecting potential operational inefficiencies. The latest earnings call highlights a 6% organic revenue growth and margin expansion, with strategic focus on affordability and local relevance. While geopolitical tensions and misinformation pose risks, the company remains optimistic about achieving its 2025 guidance through targeted initiatives.
Data provided by:Main Street Data

Coca-Cola Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: -1.38%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Coca-Cola's strong revenue growth, value share gains, and successful regional strategies, particularly in North America and EMEA. However, challenges remain with volume declines, especially in Asia Pacific and emerging markets, as well as currency headwinds impacting earnings. Overall, the sentiment is balanced with a slight positive tilt due to strong financial performance and an improved outlook.
Q2-2025 Updates
Positive Updates
Organic Revenue Growth
The company delivered 5% organic revenue growth and robust margin expansion, leading to 4% comparable earnings per share growth despite currency headwinds and a higher effective tax rate.
Value Share Gains
Coca-Cola achieved its seventeenth consecutive quarter of value share gains, indicating strong market performance across various regions.
North America Performance
Despite volume decline, Coca-Cola gained value share and achieved revenue and profit growth in North America, with several brands showing strong volume growth.
EMEA Region Success
All three operating units in EMEA grew volume, with revenue and profit growth, driven by successful campaigns and strong brand performance.
Strong Financial Results
The company reported a free cash flow increase of approximately $600 million versus the prior year, driven by underlying business performance and lower tax payments.
Improved Guidance
Coca-Cola updated its 2025 guidance to reflect continued strong performance, with expected comparable currency-neutral earnings per share growth of approximately 8%.
Negative Updates
Volume Decline
Volume declined 1% during the quarter, impacted by adverse weather and consumer pressure in several key markets.
Challenges in Asia Pacific
Mixed performance across Asia Pacific, with volume declines in Thailand, Indonesia, and Vietnam, despite revenue and operating income growth.
Impact of Currency Headwinds
The company faced a 5% currency headwind on comparable earnings per share, affecting overall financial performance.
Weakness in Emerging Markets
Volume declines in key emerging markets like India and Mexico due to adverse weather and geopolitical conflicts.
Company Guidance
During the Coca-Cola Company's Second Quarter 2025 Earnings Results Conference Call, the company provided updated guidance for the remainder of the year, highlighting several key metrics. Coca-Cola reported a 5% organic revenue growth and a 4% increase in comparable earnings per share, despite a 1% volume decline and a 5% currency headwind. The company gained value share for the seventeenth consecutive quarter and achieved an 80 basis point increase in comparable gross margin and a 190 basis point rise in comparable operating margin. For the full year, Coca-Cola expects organic revenue growth of 5% to 6% and comparable currency-neutral earnings per share growth of approximately 8%. Despite facing challenges such as adverse weather and geopolitical tensions, Coca-Cola remains confident in navigating the dynamic environment, leveraging strategic growth initiatives and enhancing its marketing and operational capabilities to deliver on its 2025 guidance.

Coca-Cola Financial Statement Overview

Summary
Coca-Cola demonstrates strong financial performance with robust revenue growth and profitability. The income statement shows efficient cost management and significant profitability with a net profit margin of 25.9%. The balance sheet is solid with moderate leverage and a strong equity position. However, there are cash flow challenges due to increased capital expenditures, resulting in negative free cash flow.
Income Statement
90
Very Positive
Coca-Cola demonstrates strong revenue performance with a steady increase in total revenue over the years. TTM (Trailing-Twelve-Months) gross profit margin stands at 61.4%, indicating efficient cost management. Net profit margin for the TTM is 25.9%, showcasing significant profitability. The EBIT margin of 28.0% and EBITDA margin of 36.7% further highlight operational efficiency. Revenue growth has been consistent, with a notable year-over-year growth from 2023 to 2024. Overall, the income statement reflects a robust financial position, driven by stable revenue and improved profitability.
Balance Sheet
85
Very Positive
Coca-Cola's balance sheet is solid with a debt-to-equity ratio of 1.73 for the TTM, indicating moderate leverage. The company maintains a healthy equity ratio of 27.4%, reflecting a strong proportion of equity in its asset base. Return on Equity (ROE) is at 42.6%, demonstrating excellent profitability relative to shareholder's equity. However, the slight increase in total debt over the years suggests a need to monitor leverage. Overall, the balance sheet is well-managed, with a strong equity position and efficient use of debt.
Cash Flow
75
Positive
Coca-Cola's cash flow statements reveal a temporary dip in free cash flow during the TTM due to increased capital expenditures, resulting in negative free cash flow. The operating cash flow to net income ratio is low at 0.11, indicating a disparity between cash generated from operations and reported net income. The free cash flow to net income ratio is negative, reflecting current cash flow pressures. Despite this, historical cash flow performance has been strong, with positive free cash flow and consistent operating cash flow in previous years. The company should focus on managing capital expenditures to restore free cash flow levels.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue47.06B45.75B43.00B38.66B33.01B
Gross Profit28.74B27.23B25.00B23.30B19.58B
EBITDA15.82B15.61B13.83B15.47B12.72B
Net Income10.63B10.71B9.54B9.77B7.75B
Balance Sheet
Total Assets100.55B97.70B92.76B94.35B87.30B
Cash, Cash Equivalents and Short-Term Investments14.57B13.66B11.63B12.63B10.91B
Total Debt45.73B43.43B40.60B44.23B44.41B
Total Liabilities74.18B70.22B66.94B69.49B66.01B
Stockholders Equity24.86B25.94B24.11B23.00B19.30B
Cash Flow
Free Cash Flow4.74B9.75B9.53B11.26B8.67B
Operating Cash Flow6.80B11.60B11.02B12.63B9.84B
Investing Cash Flow2.52B-3.35B-763.00M-2.77B-1.48B
Financing Cash Flow-6.91B-8.31B-10.25B-6.79B-8.07B

Coca-Cola Technical Analysis

Technical Analysis Sentiment
Negative
Last Price69.10
Price Trends
50DMA
70.42
Negative
100DMA
70.40
Negative
200DMA
67.13
Positive
Market Momentum
MACD
-0.29
Positive
RSI
42.46
Neutral
STOCH
32.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KO, the sentiment is Negative. The current price of 69.1 is below the 20-day moving average (MA) of 70.07, below the 50-day MA of 70.42, and above the 200-day MA of 67.13, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 32.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$46.01B29.9517.43%0.03%11.73%-15.34%
77
Outperform
$45.50B30.346.18%3.39%4.63%-28.22%
76
Outperform
$9.96B19.8736.83%5.00%3.21%31.84%
76
Outperform
$57.72B39.0820.00%1.47%-4.87%
74
Outperform
$199.42B26.5639.88%3.80%-0.34%-20.51%
73
Outperform
$297.68B24.5344.76%2.88%1.34%14.67%
65
Neutral
$27.20B15.73-4.29%2.57%1.03%4.90%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KO
Coca-Cola
69.10
4.91
7.65%
COKE
Coca-Cola Bottling Co Consolidated
111.81
2.08
1.90%
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%
CCEP
Coca-Cola Europacific Partners
100.17
29.50
41.74%

Coca-Cola Corporate Events

Business Operations and Strategy
Coca-Cola Restructures Operations for Improved Efficiency
Neutral
Jun 26, 2025

Effective January 1, 2025, Coca-Cola will streamline its operations by discontinuing its Global Ventures segment, which was responsible for overseeing Costa Limited, innocent, and doğadan. These businesses will now be integrated into the Europe, Middle East, and Africa segment, while Costa’s ready-to-drink business and Monster Beverage Corporation fees will be reported in their respective geographic segments. This restructuring aims to simplify Coca-Cola’s operating structure and improve efficiency.

The most recent analyst rating on (KO) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Coca-Cola stock, see the KO Stock Forecast page.

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.Date of analysis: Jul 24, 2025