Is Coca Cola Stock a Good Investment?

Coca Cola Investment Advice

  KO
To provide specific investment advice or recommendations on The Coca Cola stock, we recommend investors consider the following general factors when evaluating The Coca Cola. This will help you to make an informed decision on whether to include Coca Cola in one of your diversified portfolios:
  • Examine Coca Cola's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Coca Cola's leadership team and their track record. Good management can help Coca Cola navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Soft Drinks & Non-alcoholic Beverages space and any emerging trends that could impact Coca Cola's business and its evolving consumer preferences.
  • Compare Coca Cola's performance and market position to its competitors. Analyze how Coca Cola is positioned in terms of product offerings, innovation, and market share.
  • Check if Coca Cola pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Coca Cola's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in The Coca Cola stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if The Coca Cola is a good investment.
 
Sell
 
Buy
Cautious Hold
Macroaxis provides unbiased investment recommendation on Coca Cola that should be used to complement current analysts and expert consensus on The Coca Cola. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Coca Cola is not overpriced, please confirm all Coca Cola fundamentals, including its shares owned by institutions, cash per share, number of employees, as well as the relationship between the revenue and cash flow from operations . Given that Coca Cola has a price to earning of 27.50 X, we suggest you to validate The Coca Cola market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Coca Cola Stock

Researching Coca Cola's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 65.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.64. Coca Cola last dividend was issued on the 29th of November 2024. The entity had 2:1 split on the 13th of August 2012.
To determine if Coca Cola is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Coca Cola's research are outlined below:
Coca Cola generated a negative expected return over the last 90 days
About 65.0% of the company shares are owned by institutional investors
Latest headline from thelincolnianonline.com: Wexford Capital LP Purchases 3,503 Shares of The Coca-Cola Company

Coca Cola Quarterly Gross Profit

7.19 Billion

Coca Cola uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in The Coca Cola. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Coca Cola's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
22nd of April 2024
Upcoming Quarterly Report
View
24th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
11th of February 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Coca Cola's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Coca Cola's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2005-02-16
2004-12-310.20.230.0315 
2001-10-18
2001-09-300.20.230.0315 
2008-10-15
2008-09-300.380.420.0410 
2021-04-19
2021-03-310.50.550.0510 
2021-02-10
2020-12-310.420.470.0511 
2022-04-25
2022-03-310.580.640.0610 
2015-04-22
2015-03-310.420.480.0614 
2021-10-27
2021-09-300.580.650.0712 

Coca Cola Target Price Consensus

Coca target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Coca Cola's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   24  Strong Buy
Most Coca analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Coca stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Coca Cola, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Coca Cola Target Price Projection

Coca Cola's current and average target prices are 62.60 and 61.97, respectively. The current price of Coca Cola is the price at which The Coca Cola is currently trading. On the other hand, Coca Cola's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Coca Cola Market Quote on 10th of December 2024

Low Price61.9Odds
High Price62.93Odds

62.6

Target Price

Analyst Consensus On Coca Cola Target Price

Low Estimate56.39Odds
High Estimate68.79Odds

61.97

Historical Lowest Forecast  56.39 Target Price  61.97 Highest Forecast  68.79
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on The Coca Cola and the information provided on this page.

Coca Cola Analyst Ratings

Coca Cola's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Coca Cola stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Coca Cola's financials, market performance, and future outlook by experienced professionals. Coca Cola's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Coca Cola's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Coca Cola is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The Coca Cola backward and forwards among themselves. Coca Cola's institutional investor refers to the entity that pools money to purchase Coca Cola's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Northern Trust Corp2024-09-30
40 M
Gqg Partners Llc2024-09-30
37.8 M
Legal & General Group Plc2024-09-30
36.6 M
Bank Of America Corp2024-09-30
33.8 M
Bank Of New York Mellon Corp2024-09-30
32.1 M
Wellington Management Company Llp2024-09-30
31.6 M
Ubs Asset Mgmt Americas Inc2024-09-30
29.4 M
Royal Bank Of Canada2024-09-30
28.2 M
Franklin Resources Inc2024-09-30
28 M
Berkshire Hathaway Inc2024-09-30
400 M
Vanguard Group Inc2024-09-30
376 M
Note, although Coca Cola's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Coca Cola's market capitalization trends

The company currently falls under 'Mega-Cap' category with a market capitalization of 269.67 B.

Market Cap

102.66 Billion

Coca Cola's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.17  0.18 
Return On Capital Employed 0.15  0.14 
Return On Assets 0.11  0.14 
Return On Equity 0.41  0.37 
The company has Net Profit Margin (PM) of 0.22 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.3 %, which signifies that for every $100 of sales, it has a net operating income of $0.3.
Determining Coca Cola's profitability involves analyzing its financial statements and using various financial metrics to determine if Coca Cola is a good buy. For example, gross profit margin measures Coca Cola's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Coca Cola's profitability and make more informed investment decisions.

Coca Cola's Earnings Breakdown by Geography

Evaluate Coca Cola's management efficiency

Coca Cola has Return on Asset (ROA) of 0.0844 % which means that for every $100 of assets, it generated a profit of $0.0844. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.3723 %, which means that it produced $0.3723 on every 100 dollars invested by current stockholders. Coca Cola's management efficiency ratios could be used to measure how well Coca Cola manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Coca Cola's Return On Tangible Assets are very stable compared to the past year. As of the 10th of December 2024, Return On Assets is likely to grow to 0.14, while Return On Capital Employed is likely to drop 0.14. At this time, Coca Cola's Return On Assets are very stable compared to the past year. As of the 10th of December 2024, Asset Turnover is likely to grow to 0.87, while Non Currrent Assets Other are likely to drop about 4.7 B.
Last ReportedProjected for Next Year
Book Value Per Share 6.36  6.67 
Tangible Book Value Per Share(1.33)(1.26)
Enterprise Value Over EBITDA 18.40  14.81 
Price Book Value Ratio 9.82  10.76 
Enterprise Value Multiple 18.40  14.81 
Price Fair Value 9.82  10.76 
Enterprise Value100.7 B105.7 B
The management team at Coca Cola has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Dividend Yield
0.031
Forward Dividend Yield
0.031
Forward Dividend Rate
1.94
Beta
0.62

Basic technical analysis of Coca Stock

As of the 10th of December, Coca Cola shows the Risk Adjusted Performance of (0.14), mean deviation of 0.6698, and Coefficient Of Variation of (508.97). Coca Cola technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Coca Cola's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Coca Cola insiders, such as employees or executives, is commonly permitted as long as it does not rely on Coca Cola's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Coca Cola insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
 
Wollaert Guy over a year ago
Coca Cola exotic insider transaction detected

Coca Cola's Outstanding Corporate Bonds

Coca Cola issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Coca Cola uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Coca bonds can be classified according to their maturity, which is the date when The Coca Cola has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Coca Cola's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Coca Cola's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Coca Cola's intraday indicators

Coca Cola intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Coca Cola stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Coca Cola Corporate Filings

F4
26th of November 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
10Q
24th of October 2024
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
8K
23rd of October 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F3
21st of October 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
Coca Cola time-series forecasting models is one of many Coca Cola's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Coca Cola's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Coca Stock media impact

Far too much social signal, news, headlines, and media speculation about Coca Cola that are available to investors today. That information is available publicly through Coca media outlets and privately through word of mouth or via Coca internal channels. However, regardless of the origin, that massive amount of Coca data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Coca Cola news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Coca Cola relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Coca Cola's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Coca Cola alpha.

Coca Cola Historical Investor Sentiment

Investor biases related to Coca Cola's public news can be used to forecast risks associated with an investment in Coca. The trend in average sentiment can be used to explain how an investor holding Coca can time the market purely based on public headlines and social activities around The Coca Cola. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Coca Cola's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Coca Cola and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Coca Cola news discussions. The higher the estimate score, the more favorable the investor's outlook on Coca Cola.

Coca Cola Corporate Directors

Alexis HermanIndependent DirectorProfile
Robert KotickIndependent DirectorProfile
Ana OSheaIndependent DirectorProfile
Helene GayleIndependent DirectorProfile
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in The Coca Cola. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Soft Drinks & Non-alcoholic Beverages space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coca Cola. If investors know Coca will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coca Cola listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.07)
Dividend Share
1.915
Earnings Share
2.41
Revenue Per Share
10.753
Quarterly Revenue Growth
(0.01)
The market value of Coca Cola is measured differently than its book value, which is the value of Coca that is recorded on the company's balance sheet. Investors also form their own opinion of Coca Cola's value that differs from its market value or its book value, called intrinsic value, which is Coca Cola's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coca Cola's market value can be influenced by many factors that don't directly affect Coca Cola's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Coca Cola's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Coca Cola is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coca Cola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.