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Coca-Cola
(NYSE:KO)
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Rating:78Outperform
Price Target:
$97.00
▲(28.07% Upside)
Action:Reiterated
Date:07/17/26
KO’s score is driven primarily by strong financial performance (high and durable margins, improved TTM earnings, and solid free cash flow) and supportive technicals (price above key moving averages with positive MACD). The score is held back by premium valuation (P/E ~26.6 despite a ~2.45% yield), leverage/cash-to-debt constraints noted in the financials, and a near-term operational risk from the fairlife ransomware disruption; earnings call guidance was constructive with an EPS outlook upgrade but included notable margin and regional headwinds.
Positive Factors
Asset-light concentrate/syrup model
Coca‑Cola’s concentrate and syrup model delegates manufacturing, packaging and distribution to long‑term independent bottlers, keeping capital intensity off the parent. This supports durable margins, scalable revenue per unit, lower capex needs and predictable partner-driven route-to-market execution over months and years.
Negative Factors
Elevated leverage
Material leverage increases sensitivity to interest rates and refinancing conditions, constraining capital allocation flexibility. With operating cash flow low relative to debt, speed of deleveraging is limited, which could reduce optionality for M&A, buybacks or cushioning against macro shocks over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light concentrate/syrup model
Coca‑Cola’s concentrate and syrup model delegates manufacturing, packaging and distribution to long‑term independent bottlers, keeping capital intensity off the parent. This supports durable margins, scalable revenue per unit, lower capex needs and predictable partner-driven route-to-market execution over months and years.
Read all positive factors
Coca-Cola Key Performance Indicators (KPIs)
Any
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.
Analyzes income from different business units, highlighting which product lines or services are driving sales and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyCoca-Cola (KO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$365.37B
Dividend Yield2.92%
Average Volume (3M)18.57M
Price to Earnings (P/E)26.6
Beta (1Y)0.11
Revenue Growth6.74%
EPS Growth27.16%
CountryUS
Employees65,900
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)3.19
Shares Outstanding4,302,482,400
10 Day Avg. Volume14,332,998
30 Day Avg. Volume18,569,361
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)9.35
Price to Sales (P/S)6.27
P/FCF Ratio56.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$89.25Price Target Upside17.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)3.27
Revenue Forecast (FY)$49.06B
Coca-Cola Business Overview & Revenue Model
Company Description
The Coca-Cola Company, a beverage company, manufactures and sells various nonalcoholic beverages in the United States and internationally. The company provides Trademark Coca-Cola, sparkling soft drinks and flavors; water, sports, coffee, and tea;...
How the Company Makes Money
Coca-Cola primarily makes money by selling beverage concentrates and syrups to authorized bottlers and other partners who then manufacture, package, distribute, and sell finished beverages to retailers and foodservice customers. Under this model, ...
Coca-Cola Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a generally strong operational and financial start to 2026: volume growth across markets, a notable 10% organic revenue increase, 18% EPS growth in Q1, operating margin expansion and an upgraded full-year EPS outlook. These positive results are tempered by gross margin pressure driven by commodity and inventory phasing (notably in APAC), regional disruptions (Middle East), production constraints in select North American SKUs, and divestiture and timing headwinds. Management emphasized agility, consumer-centric execution and system-level levers to manage cost and mix, and reiterated confidence in delivering updated guidance despite macro and geopolitical uncertainties.Positive Updates
Volume Growth and Market Share Momentum
Global unit case growth of 3% and the company extended its streak of gaining overall value share for the 20th consecutive quarter; volume grew across all segments and operating units.
Negative Updates
Gross Margin Pressure
Comparable gross margin declined by approximately 30 basis points in Q1, driven primarily by commodity pressures (tea and coffee), phasing of inventory costs (notably juice inventory phasing in China) and timing of trade spend.
Read all updates
Q1-2026 Updates
Positive
Negative
Volume Growth and Market Share Momentum
Global unit case growth of 3% and the company extended its streak of gaining overall value share for the 20th consecutive quarter; volume grew across all segments and operating units.
Read all positive updates
Company Guidance
Management reaffirmed updated 2026 guidance, calling for organic revenue growth of 4–5%, comparable currency‑neutral EPS growth excluding acquisitions/divestitures of 6–7%, and comparable EPS growth of 8–9% versus $3 in 2025 (up from prior 7–8%) driven in part by a lower underlying effective tax rate now expected at 19.9% (‑1 point). They expect divestitures (primarily the potential CCBA sale) to be an ~4‑point headwind to comparable net revenues and ~1 point to comparable EPS, anticipate an approximate 1–2 point currency tailwind to comparable net revenues and ~3 points to comparable EPS, note Q4 will have 6 fewer days (Easter gave ~0.5 point benefit to Q1) and expect concentrate shipments to realign with unit cases by a couple points in Q2. Quarter highlights cited: organic revenues +10%, unit cases +3%, price/mix +2%, comparable gross margin down ~30 bps, comparable operating margin up ~70 bps, comparable Q1 EPS $0.86 (+18% YoY), free cash flow ≈ $1.8B and net debt/EBITDA ~1.6x.Coca-Cola Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.28B | 47.94B | 47.06B | 45.75B | 43.00B | 38.66B |
| Gross Profit | 30.43B | 29.54B | 28.74B | 27.23B | 25.00B | 23.30B |
| EBITDA | 19.24B | 18.70B | 15.82B | 15.61B | 13.83B | 15.47B |
| Net Income | 13.70B | 13.11B | 10.63B | 10.71B | 9.54B | 9.77B |
Balance Sheet | ||||||
| Total Assets | 104.22B | 104.82B | 100.55B | 97.70B | 92.76B | 94.35B |
| Cash, Cash Equivalents and Short-Term Investments | 11.08B | 13.87B | 14.57B | 13.66B | 11.63B | 12.63B |
| Total Debt | 43.89B | 45.49B | 45.73B | 43.43B | 40.60B | 44.23B |
| Total Liabilities | 68.48B | 70.54B | 74.18B | 70.22B | 66.94B | 69.49B |
| Stockholders Equity | 33.63B | 32.17B | 24.86B | 25.94B | 24.11B | 23.00B |
Cash Flow | ||||||
| Free Cash Flow | 12.56B | 5.30B | 4.74B | 9.75B | 9.53B | 11.26B |
| Operating Cash Flow | 14.63B | 7.41B | 6.80B | 11.60B | 11.02B | 12.63B |
| Investing Cash Flow | 4.08B | -67.00M | 2.52B | -3.35B | -763.00M | -2.77B |
| Financing Cash Flow | -16.78B | -8.14B | -6.91B | -8.31B | -10.25B | -6.79B |
Coca-Cola Technical Analysis
Positive
75.74
Price Trends
80.78
Positive
78.62
Positive
74.37
Positive
Market Momentum
0.81
Positive
48.58
Neutral
40.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KO, the sentiment is Positive. The current price of 75.74 is below the 20-day moving average (MA) of 82.25, below the 50-day MA of 80.78, and above the 200-day MA of 74.37, indicating a neutral trend. The MACD of 0.81 indicates Positive momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 40.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $97.74B | 48.05 | 25.46% | ― | 18.06% | 36.22% | |
78 Outperform | $365.37B | 26.62 | 43.62% | 2.92% | 6.74% | 27.16% | |
74 Outperform | $190.31B | 18.25 | 43.94% | 3.91% | 5.62% | 38.93% | |
68 Neutral | $42.69B | 23.24 | 7.25% | 3.12% | 9.19% | 21.61% | |
67 Neutral | $3.02B | 16.45 | 35.99% | ― | -1.73% | -1.71% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $12.14B | 23.33 | 122.90% | 0.61% | 8.81% | 14.00% |
* Consumer Defensive Sector Average
KO
Coca-Cola
81.56
13.63
20.07%
COKE
Coca-Cola Bottling Co Consolidated
180.74
68.19
60.59%
KDP
Keurig Dr Pepper
30.91
-1.54
-4.74%
MNST
Monster Beverage
97.50
38.50
65.25%
FIZZ
National Beverage
31.07
-10.80
-25.79%
PEP
PepsiCo
137.12
-0.67
-0.48%
Coca-Cola Corporate Events
Business Operations and Strategy
Coca-Cola’s fairlife unit hit by ransomware disruption
Negative
Jul 17, 2026
On July 16, 2026, Coca-Cola disclosed that its dairy subsidiary fairlife, LLC experienced unauthorized third-party access to part of its systems, including production-related infrastructure, in a ransomware incident. The company activated incident...
Business Operations and StrategyExecutive/Board Changes
Coca-Cola Announces Leadership Transition in North America Unit
Neutral
Jun 25, 2026
On June 25, 2026, The Coca-Cola Company announced that Jennifer Mann will leave her role as executive vice president and president of the North America Operating Unit, stepping down from these positions on July 31, 2026. Beginning August 1, 2026, ...
Executive/Board ChangesShareholder Meetings
Coca-Cola Shareowners Back Board, Reject ESG Proposals
Positive
May 1, 2026
At the 2026 Annual Meeting of Shareowners held on April 29, 2026, Coca-Cola investors re-elected all nominated directors, including CEO James Quincey, with strong majorities, and approved the advisory vote on executive compensation. Shareowners al...
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.