Coca-Cola Europacific Partners (CCEP) AI Stock Analysis

• Market Cap: $41.44B
• Dividend Yield: 2.47%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.40
• Revenue Growth: 9.65%
• EPS Growth: -4.26%
• Country: US
• Employees: 41,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 2.37
• Shares Outstanding: 460,780,980
• 10 Day Avg. Volume: 2,380,466
• 30 Day Avg. Volume: 1,982,077
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 7.42
• Enterprise Value/Ebitda: 16.51
• 1Y Price Target: $99.44
• Price Target Upside: 10.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $100.00 ▲(11.19% Upside)

Coca-Cola Europacific Partners' strong financial performance and positive earnings call sentiment are the most significant factors supporting the stock score. Technical indicators and valuation suggest caution, with potential overvaluation and bearish momentum. The company's ability to manage challenges in specific markets and FX headwinds will be crucial for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Cash Flow Generation

Robust cash flow generation supports ongoing investments and debt repayment, ensuring financial flexibility and stability.

Operating Profit Growth

Sustained operating profit growth reflects efficient management and operational effectiveness, contributing to long-term profitability.

Negative Factors

Market Challenges in Indonesia

Challenges in Indonesia could hinder overall growth, requiring strategic adjustments to mitigate regional performance issues.

Higher Effective Tax Rate

An increased tax rate reduces net income, potentially affecting shareholder returns and reinvestment capabilities.

FX Headwind

FX headwinds can erode profitability and revenue, necessitating effective hedging strategies to protect financial performance.

Coca-Cola Europacific Partners Business Overview & Revenue Model

Company Description

Coca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. The company offers flavours, mixers, and energy drinks; soft drinks, waters, enhanced water, and isotonic drinks; and ready-to-drink tea and coffee, juices, and other drinks. It provides its products under the Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Fanta, Sprite, Monster Energy, Coca-Cola Energy, Relentless, nalu, URGE, BURN, Kuli, REIGN, POWERADE, Appletiser, Schweppes, FINLEY, mezzo mix, Royal Bliss, Lift, Vio SCHORLE, Coca-Cola Signature Mixers, NORDIC MIST, smartwater, Chaudfontaine, AQUARIUS, VILAS del Turbon, BONAQUA, Apollinaris, Krystal, Honest, Costa Coffee, Fuzetea, CHAQWA, NESTEA, Capri-Sun, Oasis, Minute Maid, MER, and Tropico brands. In addition, the company engages in the bottling and other operations. As of March 15, 2022, it served approximately 600 million consumers. The company was formerly known as Coca-Cola European Partners plc and changed its name to Coca-Cola Europacific Partners PLC in May 2021. Coca-Cola Europacific Partners PLC was founded in 1986 and is based in Uxbridge, the United Kingdom.

How the Company Makes Money

CCEP generates revenue primarily through the sale of beverages to retailers and food service customers. Its revenue model is based on the wholesale distribution of products, where it purchases concentrates and syrups from The Coca-Cola Company and then produces and sells finished goods. Key revenue streams include sales from carbonated soft drinks, non-carbonated beverages, and energy drinks. Additionally, CCEP benefits from partnerships with major retailers, which help enhance product visibility and accessibility. Marketing initiatives and promotions also play a significant role in driving sales, while operational efficiencies and cost management contribute to profitability.

Coca-Cola Europacific Partners Financial Statement Overview

Summary

Coca-Cola Europacific Partners shows strong financial health with consistent revenue growth, efficient operational management, and solid cash flow generation. The balance sheet is stable, though there is room for improvement in reducing leverage.

Income Statement

Coca-Cola Europacific Partners has demonstrated a consistent increase in revenue over the years, with a notable revenue growth rate of 11.66% from 2023 to 2024. Gross profit margin remains strong at 35.64% in 2024, although net profit margin declined slightly to 6.94% due to reduced net income. The EBIT and EBITDA margins are solid, reflecting efficient operational management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.35, indicating moderate leverage. Return on equity is robust at 16.70%, showcasing effective use of equity. The equity ratio of 27.29% suggests a reliable level of financial stability, though there is room for improvement in reducing debt levels.

Cash Flow

Cash flow statements show a strong free cash flow growth rate of 6.36% from 2023 to 2024. The operating cash flow to net income ratio of 2.16 signifies good cash conversion, while the free cash flow to net income ratio of 1.60 indicates solid cash generation capabilities relative to profit, supporting continued investment and debt repayment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.44B	18.30B	17.32B	13.76B	10.61B
Gross Profit	7.28B	6.73B	6.22B	5.16B	3.73B
EBITDA	3.27B	2.88B	2.94B	2.32B	1.54B
Net Income	1.42B	1.67B	1.51B	982.00M	498.00M
Balance Sheet
Total Assets	31.10B	29.25B	29.31B	29.09B	19.24B
Cash, Cash Equivalents and Short-Term Investments	1.71B	1.99B	1.64B	1.47B	1.52B
Total Debt	11.33B	11.40B	11.91B	13.14B	7.19B
Total Liabilities	22.11B	21.28B	21.87B	21.88B	13.21B
Stockholders Equity	8.49B	7.98B	7.45B	7.03B	6.03B
Cash Flow
Free Cash Flow	2.27B	2.13B	2.33B	1.77B	1.08B
Operating Cash Flow	3.06B	2.81B	2.93B	2.12B	1.49B
Investing Cash Flow	-1.96B	-937.00M	-645.00M	-5.61B	-370.00M
Financing Cash Flow	-973.00M	-1.82B	-2.28B	3.29B	100.00M

Coca-Cola Europacific Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCEP, the sentiment is Positive. The current price of 89.94 is above the 20-day moving average (MA) of 89.15, below the 50-day MA of 92.88, and above the 200-day MA of 86.42, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 47.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCEP.

Coca-Cola Europacific Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNST	80 Outperform	62.62B	40.05	0.00%	―	3.70%	-0.53%
PEP	75 Outperform	194.08B	25.85	40.99%	3.92%	-0.34%	-20.51%
KO	74 Outperform	285.89B	23.54	42.62%	3.03%	1.34%	14.67%
CCEP	72 Outperform	$41.44B	24.77	17.99%	2.47%	9.65%	-4.26%
COKE	72 Outperform	9.84B	18.86	35.92%	5.24%	3.22%	23.88%
KDP	67 Neutral	36.83B	24.05	6.15%	3.39%	4.63%	-28.22%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%