Coca-Cola (KO) AI Stock Analysis

• Market Cap: $303.99B
• Dividend Yield: 2.9%
• Average Volume (3M): 16.85M
• Price to Earnings (P/E): 23.4
• 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): 0.82
• Shares Outstanding: 4,301,609,000
• 10 Day Avg. Volume: 18,686,375
• 30 Day Avg. Volume: 16,854,783
• PEG Ratio: -62.58
• Price to Book (P/B): 10.79
• Price to Sales (P/S): 5.70
• P/FCF Ratio: 56.59
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 6.65
• Enterprise Value/Gross Profit: 10.79
• Enterprise Value/Ebitda: 17.05
• 1Y Price Target: $78.92
• Price Target Upside: 12.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.99
• Revenue Forecast (FY): $48.26B

• Rating: 75 Outperform
• Price Target: $79.00 ▲(12.28% Upside)

Coca-Cola's strong financial performance and positive earnings call sentiment are key strengths, supported by strategic initiatives and innovations. However, high leverage, slowing revenue growth, and premium valuation present risks. Technical indicators provide mixed signals, suggesting cautious optimism.

Positive Factors

Strong Brand Recognition

Coca-Cola's strong brand recognition and diverse beverage portfolio provide a durable competitive advantage, ensuring steady demand and market presence.

Strategic Refranchising

Strategic refranchising efforts enhance operational efficiency and focus on core competencies, unlocking growth opportunities and improving profitability.

Innovation and Marketing Success

Continued innovation and successful marketing campaigns drive consumer engagement and expand product offerings, supporting long-term revenue growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Slowing Revenue Growth

Slowing revenue growth may indicate market saturation or increased competition, challenging Coca-Cola's ability to sustain long-term expansion.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can constrain the company's ability to fund operations, pay dividends, and invest in future growth initiatives.

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

Coca-Cola exhibits strong financial performance with robust revenue growth and profitability. The income statement shows a high net profit margin and operational efficiency. The balance sheet is solid with moderate leverage, though cash flow challenges due to increased capital expenditures need attention.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.66B	47.06B	45.75B	43.00B	38.66B	33.01B
Gross Profit	29.38B	28.74B	27.23B	25.00B	23.30B	19.58B
EBITDA	18.59B	15.82B	15.61B	13.83B	15.47B	12.72B
Net Income	13.03B	10.63B	10.71B	9.54B	9.77B	7.75B
Balance Sheet
Total Assets	106.05B	100.55B	97.70B	92.76B	94.35B	87.30B
Cash, Cash Equivalents and Short-Term Investments	13.87B	14.57B	13.66B	11.63B	12.63B	10.91B
Total Debt	47.42B	45.73B	43.43B	40.60B	44.23B	44.41B
Total Liabilities	72.78B	74.18B	70.22B	66.94B	69.49B	66.01B
Stockholders Equity	31.25B	24.86B	25.94B	24.11B	23.00B	19.30B
Cash Flow
Free Cash Flow	5.57B	4.74B	9.75B	9.53B	11.26B	8.67B
Operating Cash Flow	7.60B	6.80B	11.60B	11.02B	12.63B	9.84B
Investing Cash Flow	194.00M	2.52B	-3.35B	-763.00M	-2.77B	-1.48B
Financing Cash Flow	-8.57B	-6.91B	-8.31B	-10.25B	-6.79B	-8.07B

Coca-Cola Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 70.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KO, the sentiment is Neutral. The current price of 70.36 is below the 20-day moving average (MA) of 70.94, above the 50-day MA of 69.70, and above the 200-day MA of 68.93, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 66.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KO.

Coca-Cola Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNST	80 Outperform	$72.63B	42.96	25.54%	―	7.62%	12.77%
PEP	78 Outperform	$205.21B	28.55	37.19%	3.76%	0.48%	-22.61%
KO	75 Outperform	$303.99B	23.40	45.12%	2.90%	2.93%	25.42%
CCEP	74 Outperform	$41.48B	25.38	17.99%	2.52%	9.65%	-4.26%
COKE	72 Outperform	$13.98B	25.31	41.92%	0.60%	4.22%	22.24%
KDP	70 Outperform	$38.11B	24.17	6.29%	3.12%	6.77%	-29.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Coca-Cola Corporate Events

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.

Coca-Cola Elects Max Levchin to Board of Directors

On October 16, 2025, The Coca-Cola Company announced the election of Max Levchin, a prominent technologist and entrepreneur, to its Board of Directors. Levchin, known for co-founding PayPal and founding Affirm, brings significant technology expertise to the company as it adapts to technological advancements in business operations. Additionally, Coca-Cola declared a regular quarterly dividend of 51 cents per share, payable on December 15 to shareholders of record as of December 1, 2025.