Download PDF

1. Company Snapshot

1.a. Company Description

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide.The company provides sparkling soft drinks; flavored and enhanced water, and sports drinks; juice, dairy, and plant–based beverages; tea and coffee; and energy drinks.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, Fanta, Fresca, Schweppes, Sprite, Thums Up, Aquarius, Ciel, dogadan, Dasani, glacéau smartwater, glacéau vitaminwater, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, Minute Maid Pulpy, Simply, Ayataka, BODYARMOR, Costa, FUZE TEA, Georgia, and Gold Peak 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.

Show Full description

1.b. Last Insights on KO

The recent 3-month performance of The Coca-Cola Company was driven by strong Q4 earnings, surpassing market expectations for both revenue and earnings. Revenue of $11.5 billion and adjusted earnings of $0.55 per share exceeded consensus estimates of $10.7 billion and $0.52, respectively. Improved price/mix and concentrate sales led to gains across operating segments, bolstering revenue performance. Additionally, the company's robust brand portfolio, favorable pricing/mix, and revenue growth in segments contributed to its positive business trends.

1.c. Company Highlights

2. Coca-Cola's Q3 2025 Earnings: A Resilient Performance Amidst a Dynamic Environment

The Coca-Cola Company delivered a robust financial performance in the third quarter of 2025, with organic revenue growth of 6%, driven by pricing actions and favorable mix. The company's comparable earnings per share grew by 6%, despite a 6% currency headwind. The actual EPS came out at $0.82, beating estimates of $0.779. The company's EBIT margins were up in Q3 due to timing benefits and productivity in the marketing area, demonstrating its ability to manage costs effectively.

Publication Date: Oct -28

📋 Highlights
  • Organic Revenue Growth:: Achieved 6% growth (Q3 2025), driven by 6% price/mix and 1% volume increase, despite 6% currency headwinds.
  • Free Cash Flow Projection:: Expects at least $9.8 billion in free cash flow for 2025, reflecting strong operational performance.
  • 2026 Revenue Growth Strategy:: Aims for 2–3% volume and 2–3% price growth annually, aligning with long-term balanced top-line objectives.
  • Margin Expansion Target:: Refranchising progress nearing completion, targeting mid-30s operating margins through structural cost efficiencies.
  • Asia-Pacific Performance:: Organic sales grew 7% (Q3 2025) in Asia, driven by India and emerging markets, though offset by weaker performance in China and ASEAN.

Segmental Performance

The company's geographic segments delivered varied performances, with North America and EMEA reporting strong results, while Asia Pacific faced challenges due to softer consumer spending and weaker industry performance. Latin America saw volume remain flat, but value share gains and organic revenue growth were notable. The company's focus on driving top-line growth through marketing, innovation, and RGM execution is evident, with a revenue growth algorithm of 2% to 3% volume and 2% to 3% price targeted for 2026.

Guidance and Outlook

Coca-Cola continues to expect organic revenue growth of 5% to 6% and comparable currency-neutral earnings per share growth of approximately 8% for 2025. The company now expects to generate at least $9.8 billion of free cash flow in 2025. For 2026, the company assumes a slight tailwind to both comparable net revenues and comparable earnings per share, with analysts estimating revenue growth at 5.3%. The company's long-term objective remains to grow volume, expanding the consumer franchise, and earning the right to pricing.

Valuation

With a P/E Ratio of 23.13 and an EV/EBITDA of 18.09, the company's valuation appears reasonable, considering its strong brand portfolio and history of delivering growth. The ROE of 47.01% and ROIC of 13.71% indicate a high level of profitability. The Dividend Yield of 2.88% provides a stable income stream, making the stock an attractive proposition for income investors.

Challenges and Opportunities

The company faces challenges in certain markets, such as Mexico, where macroeconomic issues persist. However, the company's refranchising efforts are nearing completion, and it expects a positive impact on margins, with a target operating margin of mid-30s. The company's coffee business is an area where it is reassessing its approach, while the zero-sugar and diet segments present opportunities for growth, with a focus on investing in marketing and innovation.

3. NewsRoom

Card image cap

The Dividend Stocks That Keep Paying Even When Markets Stumble

Dec -04

Source: 247wallst.com

Card image cap

Market Today: Fed hopes lift stocks; AWS AI rollout; Prada-Versace deal

Dec -03

Source: gurufocus.com

Card image cap

San Francisco is suing Coca-Cola, Nestlé, and other makers of ultraprocessed foods. Here's why

Dec -03

Source: fastcompany.com

Card image cap

How to Build a Portfolio That Pays You Every Month

Dec -03

Source: 247wallst.com

Card image cap

The Dividend Income Strategy That Helps You Sleep Better at Night

Dec -03

Source: 247wallst.com

Card image cap

First Look: Airbus trims targets, AWS AI, AEO hikes outlook

Dec -03

Source: gurufocus.com

Card image cap

Senator Buys Coca-Cola, Hershey's Stock After Selling Magnificent Seven Stocks In 2025

Dec -03

Source: benzinga.com

Card image cap

Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Non-Alcoholic Beverages

Expected Growth: 5.0%

The Coca-Cola Company's Non-Alcoholic Beverages segment growth of 5.0% is driven by increasing consumer demand for healthier options, expansion into emerging markets, and successful product innovation, such as new low-calorie and sugar-free beverages, as well as strong brand loyalty and marketing efforts.

7. Detailed Products

Coca-Cola

The flagship carbonated soft drink of The Coca-Cola Company, a sweetened, fizzy beverage made with carbonated water, sugar (or a sugar substitute in some versions), and natural flavors.

Diet Coke

A sugar-free and calorie-free version of Coca-Cola, sweetened with artificial sweeteners, targeting health-conscious consumers.

Coca-Cola Zero Sugar

Another sugar-free and calorie-free variant of Coca-Cola, formulated to taste more like the original Coca-Cola than Diet Coke.

Fanta

A line of fruit-flavored soft drinks available in various flavors such as orange, grape, and lemon.

Sprite

A lemon-lime flavored soft drink that is caffeine-free and competes with other lemon-lime flavored sodas.

Minute Maid

A brand of fruit juices and juice drinks aimed at a younger audience, available in a variety of flavors.

Powerade

A sports drink designed to replenish electrolytes and fluids lost during physical activity.

Topo Chico

A brand of sparkling water with natural flavors and minerals, positioned as a more premium and healthier beverage option.

8. The Coca-Cola Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The Coca-Cola Company faces a moderate threat from substitutes, as consumers have various beverage options, including water, juice, tea, and coffee. However, Coca-Cola's diverse product portfolio, including popular brands like Coke, Fanta, and Sprite, mitigates this threat.

Bargaining Power Of Customers

The bargaining power of customers is relatively low for The Coca-Cola Company, as it has a large and diversified customer base, including retailers, restaurants, and consumers. The company's strong brand recognition and marketing efforts also reduce customer bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is relatively low for The Coca-Cola Company, as it has a large and diversified supplier base, and the company has significant negotiating power due to its scale and market position.

Threat Of New Entrants

The threat of new entrants is relatively low for The Coca-Cola Company, as the beverage industry has high barriers to entry, including significant marketing and advertising expenses, distribution network requirements, and brand recognition.

Intensity Of Rivalry

The intensity of rivalry is high for The Coca-Cola Company, as it operates in a highly competitive beverage market with major competitors like PepsiCo, Dr Pepper Snapple Group, and Monster Beverage Corporation. The competition is driven by factors like price, marketing, and product innovation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.17%
Debt Cost 4.57%
Equity Weight 35.83%
Equity Cost 6.83%
WACC 5.38%
Leverage 179.12%

11. Quality Control: The Coca-Cola Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Altria

A-Score: 8.0/10

Value: 6.8

Growth: 5.8

Quality: 7.5

Yield: 10.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Kraft Heinz

A-Score: 6.0/10

Value: 8.7

Growth: 3.8

Quality: 4.4

Yield: 9.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Monster Beverage

A-Score: 5.7/10

Value: 1.2

Growth: 7.2

Quality: 7.9

Yield: 0.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Coca-Cola

A-Score: 5.3/10

Value: 1.8

Growth: 3.4

Quality: 7.1

Yield: 6.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
PepsiCo

A-Score: 5.1/10

Value: 2.6

Growth: 4.7

Quality: 5.6

Yield: 7.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Keurig Dr Pepper

A-Score: 4.4/10

Value: 3.8

Growth: 3.0

Quality: 5.8

Yield: 5.0

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

70.0$

Current Price

70$

Potential

-0.00%

Expected Cash-Flows