Coca-Cola (KO) AI Stock Analysis

• Market Cap: $291.82B
• Dividend Yield: 2.92%
• Average Volume (3M): 13.87M
• Price to Earnings (P/E): 22.5
• 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: 7,946,129
• 30 Day Avg. Volume: 13,873,026
• 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: 1.09
• Enterprise Value/Revenue: 6.66
• Enterprise Value/Gross Profit: 10.80
• Enterprise Value/Ebitda: 17.07
• 1Y Price Target: $79.33
• Price Target Upside: 17.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $79.00 ▲(16.97% 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 demonstrates strong profitability with high margins and return on equity. However, challenges include slowing revenue growth and high leverage. The cash flow situation needs attention due to a significant decline in free cash flow growth.

Income Statement

Coca-Cola's income statement shows strong profitability with a consistent gross profit margin above 60% and a net profit margin improving to 27.34% in TTM. Revenue growth has been steady, with a slight increase of 1.28% in TTM. The EBIT and EBITDA margins are robust, indicating efficient operations. However, the revenue growth rate has slowed compared to previous years, which could be a concern if it continues.

Balance Sheet

The balance sheet reflects a solid equity base with a return on equity of 47% in TTM, showcasing strong profitability. However, the debt-to-equity ratio of 1.52 indicates a relatively high leverage, which could pose risks if not managed carefully. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Coca-Cola's cash flow statement shows a decline in free cash flow growth, which dropped significantly in TTM. The operating cash flow to net income ratio is moderate at 0.34, indicating some room for improvement in cash generation. The free cash flow to net income ratio is healthy at 0.73, but the negative growth in free cash flow is a concern.

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	15.78B	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: Negative
• Last Price: 67.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 67.54 is below the 20-day moving average (MA) of 69.75, below the 50-day MA of 70.05, and below the 200-day MA of 69.00, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 31.07 is Neutral, neither overbought nor oversold. The STOCH value of 6.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$73.98B	43.35	25.54%	―	7.62%	12.77%
PEP	78 Outperform	$190.01B	26.44	37.19%	3.91%	0.48%	-22.61%
KO	75 Outperform	$291.82B	22.46	45.12%	2.92%	2.93%	25.42%
CCEP	74 Outperform	$38.50B	23.61	17.99%	2.52%	9.65%	-4.26%
COKE	72 Outperform	$12.44B	22.52	41.92%	0.61%	4.22%	22.24%
KDP	71 Outperform	$37.14B	23.56	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.

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.

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.

The most recent analyst rating on (KO) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on Coca-Cola stock, see the KO Stock Forecast page.