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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.

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1.b. Last Insights on KO

Coca-Cola's recent momentum is driven by its resilient business model, strong pricing power, and brand strength. The company's sharper revenue growth management strategy is yielding positive results, with pricing, mix, and pack gains contributing to organic growth. Institutional investors, such as Asset Management One Co. Ltd. and American Century Companies Inc., have increased their stakes in the company, demonstrating confidence in its prospects. A buy rating from Jefferies Financial Group, with a price target of $88, further underscores the company's appeal.

1.c. Company Highlights

2. Strong 2025 Performance and Optimistic 2026 Guidance

The company delivered a robust performance in 2025, with organic revenue growth in line with its long-term growth algorithm. In the fourth quarter, organic revenues grew 5%, driven by 1% unit case growth and a 4% price/mix contribution. Comparable gross margin and comparable operating margin both increased approximately 50 basis points. The company's earnings per share (EPS) came in at $0.58, beating analyst estimates of $0.565. For 2026, the company expects organic revenue growth of 4% to 5% and EPS growth of 5% to 6%, excluding acquisitions and divestitures.

Publication Date: Feb -11

📋 Highlights
  • 32 Billion-Dollar Brands:: Expanded portfolio to 32 billion-dollar brands, with 75% outside sparkling soft drinks.
  • 2025 Organic Revenue Growth:: Delivered 5% organic revenue growth in Q4, 1% unit case growth, and 1% price/mix growth (4% pricing offset by 3% mix).
  • 2026 Guidance:: 4-5% organic revenue growth and 5-6% currency-neutral EPS growth, with 3% FX tailwind expected from a weaker dollar.
  • North America Margin Expansion:: Achieved 30% operating margin for first time, with potential for further improvement via cost discipline and pricing.
  • Emerging Market Strategy:: Focused on India, China, and ASEAN recovery, leveraging local innovations and digital platforms to drive volume growth.

Revenue Growth Drivers

The company's revenue growth was driven by a combination of pricing actions and volume growth. In the fourth quarter, pricing actions contributed 4%, while volume growth contributed 1%. For 2026, the company expects a more balanced mix of volume and price, driven by top-line growth. As James Quincey noted, "we expect to get back to a 50-50 balance between volume and price." Emerging markets, such as India and China, are expected to be contributors to long-term volume growth.

Margin Expansion

The company's operating margin expansion was a notable highlight, with North America reaching 30% for the first time. According to John Murphy, this was not a fluke, and the company has levers to improve margins further. The company is expected to continue leading the way in North America, with opportunities to improve margins.

Valuation Metrics

Using the current stock price and the company's financial performance, we can analyze the valuation metrics. The Price-to-Earnings (P/E) ratio is 25.21, and the Price-to-Book (P/B) ratio is 10.27. The EV/EBITDA ratio is 20.12, indicating a relatively high valuation. However, the company's Return on Equity (ROE) is 44.35%, and the Return on Invested Capital (ROIC) is 14.15%, suggesting strong profitability.

Outlook and Challenges

The company is navigating a challenging market due to tax increases, but they have tools in place to mitigate the impact. In Mexico, for example, the company is working on strategies to offset the tax headwind. Henrique Braun emphasized the importance of investing ahead of the curve with bottling partners, particularly in emerging markets like India. The company's innovation strategy is also focused on local markets, accelerating the pace of innovation and improving the batting ratio.

3. NewsRoom

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Brown Brothers Harriman & Co. Has $50.32 Million Position in CocaCola Company (The) $KO

09:14

Source: defenseworld.net

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FORA Capital LLC Makes New $5.99 Million Investment in CocaCola Company (The) $KO

07:50

Source: defenseworld.net

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The Best 2 Consumer Staples Stocks to Buy and Hold for Decades

04:15

Source: fool.com

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Consumer staples will lose pricing as energy costs rise from Hormuz blockage, says RBC's Nik Modi

Mar -13

Source: youtube.com

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Top 3 Consumer Staples Dividend Stocks for Reliable Income in 2026

Mar -13

Source: fool.com

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The 5 Safest Dividend Kings Are the Only Stocks to Buy Now

Mar -13

Source: 247wallst.com

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2 Top Dividend Stocks to Buy in March

Mar -13

Source: fool.com

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3 Dividend Stocks to Buy and Hold Forever

Mar -12

Source: fool.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

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Altria

A-Score: 7.6/10

Value: 6.8

Growth: 5.8

Quality: 6.5

Yield: 10.0

Momentum: 7.0

Volatility: 9.7

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Kraft Heinz

A-Score: 6.1/10

Value: 8.9

Growth: 3.8

Quality: 4.3

Yield: 9.0

Momentum: 1.5

Volatility: 9.3

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Coca-Cola

A-Score: 6.1/10

Value: 1.6

Growth: 3.4

Quality: 7.1

Yield: 6.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Monster Beverage

A-Score: 5.7/10

Value: 1.0

Growth: 7.2

Quality: 7.7

Yield: 0.0

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

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PepsiCo

A-Score: 5.6/10

Value: 2.6

Growth: 4.7

Quality: 5.6

Yield: 7.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Keurig Dr Pepper

A-Score: 4.7/10

Value: 3.8

Growth: 3.0

Quality: 5.8

Yield: 5.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.34$

Current Price

77.34$

Potential

-0.00%

Expected Cash-Flows