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Coca-Cola

NYSE:KO
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KO
NYSE
$188B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The last earnings update was 40 days ago. More info.


Add to Portfolio Compare Print
  • Coca-Cola has significant price volatility in the past 3 months.
KO Share Price and Events
7 Day Returns
2.4%
NYSE:KO
1.2%
US Beverage
-2%
US Market
1 Year Returns
-5.7%
NYSE:KO
-6.5%
US Beverage
-15.1%
US Market
KO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Coca-Cola (KO) 2.4% -22.8% -19.9% -5.7% 2.9% 7.2%
US Beverage 1.2% -19.7% -16.6% -6.5% 2% 12.4%
US Market -2% -19.7% -23.2% -15.1% 3.7% 14.4%
1 Year Return vs Industry and Market
  • KO matched the Beverage industry (-6.5%) over the past year.
  • KO outperformed the Market in United States of America which returned -15.1% over the past year.
Price Volatility
KO
Industry
5yr Volatility vs Market

Value

 Is Coca-Cola undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Coca-Cola to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Coca-Cola.

NYSE:KO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:KO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.49 (1 + (1- 21%) (23.48%))
0.719
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.8 * 5.44%)
6.09%

Discounted Cash Flow Calculation for NYSE:KO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Coca-Cola is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:KO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.09%)
2020 8,011.62 Analyst x6 7,551.57
2021 9,315.48 Analyst x5 8,276.37
2022 10,746.75 Analyst x2 8,999.72
2023 11,432.42 Est @ 6.38% 9,024.18
2024 12,002.69 Est @ 4.99% 8,930.29
2025 12,484.45 Est @ 4.01% 8,755.35
2026 12,900.38 Est @ 3.33% 8,527.55
2027 13,268.57 Est @ 2.85% 8,267.29
2028 13,602.93 Est @ 2.52% 7,988.93
2029 13,913.88 Est @ 2.29% 7,702.33
Present value of next 10 years cash flows $84,023.00
NYSE:KO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $13,913.88 × (1 + 1.74%) ÷ (6.09% – 1.74%)
$325,275.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $325,275.33 ÷ (1 + 6.09%)10
$180,063.11
NYSE:KO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $84,023.00 + $180,063.11
$264,086.11
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $264,086.11 / 4,293.40
$61.51
NYSE:KO Discount to Share Price
Calculation Result
Value per share (USD) From above. $61.51
Current discount Discount to share price of $43.83
= -1 x ($43.83 - $61.51) / $61.51
28.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Coca-Cola is available for.
Intrinsic value
29%
Share price is $43.83 vs Future cash flow value of $61.51
Current Discount Checks
For Coca-Cola to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Coca-Cola's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Coca-Cola's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Coca-Cola's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Coca-Cola's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:KO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.09
NYSE:KO Share Price ** NYSE (2020-04-03) in USD $43.83
United States of America Beverage Industry PE Ratio Median Figure of 17 Publicly-Listed Beverage Companies 26.77x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Coca-Cola.

NYSE:KO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KO Share Price ÷ EPS (both in USD)

= 43.83 ÷ 2.09

21.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Coca-Cola is good value based on earnings compared to the US Beverage industry average.
  • Coca-Cola is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Coca-Cola's expected growth come at a high price?
Raw Data
NYSE:KO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
7.6%per year
United States of America Beverage Industry PEG Ratio Median Figure of 13 Publicly-Listed Beverage Companies 1.79x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

NYSE:KO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.01x ÷ 7.6%

2.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Coca-Cola is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Coca-Cola's assets?
Raw Data
NYSE:KO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $4.43
NYSE:KO Share Price * NYSE (2020-04-03) in USD $43.83
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 2.63x
United States of America Market PB Ratio Median Figure of 5,144 Publicly-Listed Companies 1.2x
NYSE:KO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KO Share Price ÷ Book Value per Share (both in USD)

= 43.83 ÷ 4.43

9.88x

* Primary Listing of Coca-Cola.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Coca-Cola is overvalued based on assets compared to the US Beverage industry average.
X
Value checks
We assess Coca-Cola's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Coca-Cola has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Coca-Cola expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Coca-Cola expected to grow at an attractive rate?
  • Coca-Cola's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Coca-Cola's earnings growth is positive but not above the United States of America market average.
  • Coca-Cola's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:KO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 7.6%
NYSE:KO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 2.5%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:KO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 42,693 1
2023-12-31 40,814 1
2022-12-31 40,085 12,817 12,204 8
2021-12-31 38,627 11,464 9,857 16
2020-12-31 36,769 9,850 8,928 16
2020-04-04
NYSE:KO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 37,266 10,471 8,920
2019-09-27 33,560 9,708 7,999
2019-06-28 32,828 9,442 7,286
2019-03-29 32,252 7,756 6,995
2018-12-31 34,300 7,627 6,434
2018-09-28 34,006 6,869 2,711
2018-06-29 34,309 6,385 2,278
2018-03-30 34,590 6,936 1,333
2017-12-31 36,212 7,041 1,248
2017-09-29 37,307 7,935 4,550
2017-06-30 38,862 8,318 4,149
2017-03-31 40,699 8,956 6,226

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Coca-Cola's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
  • Coca-Cola's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Coca-Cola Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 2.30 2.81 1.79 3.00
2021-12-31 2.17 2.52 1.71 5.00
2020-12-31 1.98 2.23 1.66 5.00
2020-04-04
NYSE:KO Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.09
2019-09-27 1.87
2019-06-28 1.71
2019-03-29 1.64
2018-12-31 1.51
2018-09-28 0.64
2018-06-29 0.53
2018-03-30 0.31
2017-12-31 0.29
2017-09-29 1.06
2017-06-30 0.97
2017-03-31 1.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Coca-Cola is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Coca-Cola's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Coca-Cola has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Coca-Cola performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Coca-Cola's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Coca-Cola's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Coca-Cola's 1-year earnings growth exceeds its 5-year average (38.6% vs -4.7%)
  • Coca-Cola's earnings growth has exceeded the US Beverage industry average in the past year (38.6% vs 9.2%).
Earnings and Revenue History
Coca-Cola's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Coca-Cola Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 37,266.00 8,920.00 12,011.00
2019-09-27 33,560.00 7,999.00 11,253.00
2019-06-28 32,828.00 7,286.00 10,764.00
2019-03-29 32,252.00 6,995.00 10,623.00
2018-12-31 34,300.00 6,434.00 11,013.00
2018-09-28 34,006.00 2,711.00 11,279.00
2018-06-29 34,309.00 2,278.00 11,864.00
2018-03-30 34,590.00 1,333.00 12,155.00
2017-12-31 36,212.00 1,248.00 12,901.00
2017-09-29 37,307.00 4,550.00 13,240.00
2017-06-30 38,862.00 4,149.00 14,061.00
2017-03-31 40,699.00 6,226.00 14,853.00
2016-12-31 41,863.00 6,527.00 15,401.00
2016-09-30 42,454.00 7,214.00 15,619.00
2016-07-01 43,248.00 7,617.00 15,817.00
2016-04-01 43,865.00 7,277.00 16,109.00
2015-12-31 44,294.00 7,351.00 16,427.00
2015-10-02 45,166.00 6,884.00 16,828.00
2015-07-03 45,715.00 7,549.00 17,128.00
2015-04-03 46,133.00 7,036.00 17,308.00
2014-12-31 45,998.00 7,098.00 17,218.00
2014-09-26 46,166.00 8,038.00 17,199.00
2014-06-27 46,220.00 8,371.00 17,116.00
2014-03-28 46,395.00 8,452.00 17,117.00
2013-12-31 46,854.00 8,584.00 17,310.00
2013-09-27 47,269.00 8,740.00 17,421.00
2013-06-28 47,579.00 8,604.00 17,627.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Coca-Cola made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Coca-Cola used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.
  • Coca-Cola has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Coca-Cola's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Coca-Cola has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Coca-Cola's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Coca-Cola's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Coca-Cola's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Coca-Cola's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Coca-Cola's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Coca-Cola Company Filings, last reported 3 months ago.

NYSE:KO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 21,098.00 42,784.00 11,185.00
2019-09-27 20,683.00 42,476.00 12,988.00
2019-06-28 20,295.00 45,103.00 13,361.00
2019-03-29 19,804.00 44,295.00 11,948.00
2018-12-31 19,058.00 44,254.00 16,115.00
2018-09-28 20,178.00 44,905.00 18,847.00
2018-06-29 20,176.00 46,852.00 19,354.00
2018-03-30 21,617.00 48,993.00 21,373.00
2017-12-31 18,977.00 47,724.00 20,675.00
2017-09-29 22,152.00 49,167.00 27,357.00
2017-06-30 22,089.00 49,720.00 27,224.00
2017-03-31 23,067.00 47,545.00 25,205.00
2016-12-31 23,220.00 45,757.00 22,201.00
2016-09-30 26,245.00 47,393.00 25,589.00
2016-07-01 26,838.00 48,417.00 24,078.00
2016-04-01 25,129.00 47,108.00 22,226.00
2015-12-31 25,764.00 44,401.00 19,920.00
2015-10-02 26,267.00 46,465.00 22,798.00
2015-07-03 28,641.00 44,553.00 20,953.00
2015-04-03 29,078.00 42,681.00 20,057.00
2014-12-31 30,561.00 41,782.00 21,689.00
2014-09-26 33,669.00 41,817.00 23,738.00
2014-06-27 34,301.00 40,247.00 21,612.00
2014-03-28 32,922.00 38,444.00 19,436.00
2013-12-31 33,440.00 37,082.00 20,268.00
2013-09-27 32,465.00 36,210.00 20,506.00
2013-06-28 32,631.00 35,689.00 19,265.00
  • Coca-Cola's level of debt (202.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (136.8% vs 202.8% today).
  • Debt is well covered by operating cash flow (24.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 33.1x coverage).
X
Financial health checks
We assess Coca-Cola's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Coca-Cola has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Coca-Cola's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.74%
Current annual income from Coca-Cola dividends. Estimated to be 3.93% next year.
If you bought $2,000 of Coca-Cola shares you are expected to receive $75 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Coca-Cola's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (2.05%).
  • Coca-Cola's dividend is below the markets top 25% of dividend payers in United States of America (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:KO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1938 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:KO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.84 8.00
2021-12-31 1.73 14.00
2020-12-31 1.65 14.00
2020-04-04
NYSE:KO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-20 1.640 3.387
2020-01-30 1.640 2.767
2019-10-17 1.600 2.939
2019-07-18 1.600 2.971
2019-04-25 1.600 3.186
2019-02-21 1.600 3.464
2018-10-18 1.560 3.248
2018-07-19 1.560 3.400
2018-04-26 1.560 3.605
2018-02-15 1.560 3.567
2017-10-19 1.480 3.217
2017-07-20 1.480 3.236
2017-04-27 1.480 3.316
2017-02-16 1.480 3.493
2016-10-20 1.400 3.375
2016-07-21 1.400 3.254
2016-04-28 1.400 3.108
2016-02-18 1.400 3.102
2015-10-15 1.320 3.103
2015-07-16 1.320 3.283
2015-04-30 1.320 3.255
2015-02-19 1.320 3.217
2014-10-16 1.220 2.876
2014-07-15 1.220 2.934
2014-04-24 1.220 2.962
2014-02-20 1.220 3.154
2013-10-17 1.120 2.838
2013-07-18 1.120 2.879
2013-04-25 1.120 2.716
2013-02-21 1.120 2.798
2012-10-18 1.020 2.738
2012-07-30 1.020 2.645
2012-04-26 1.020 2.673
2012-02-16 1.020 2.859
2011-10-20 0.940 2.773
2011-07-21 0.940 2.758
2011-04-28 0.940 2.806
2011-02-17 0.940 2.867
2010-10-21 0.880 2.775
2010-07-22 0.880 3.068
2010-04-22 0.880 3.366
2010-02-18 0.880 3.234
2009-10-22 0.820 2.935
2009-07-23 0.820 3.201
2009-04-23 0.820 3.489

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Coca-Cola's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Coca-Cola's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Coca-Cola afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Coca-Cola has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Coca-Cola's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
James Robert Quincey
COMPENSATION $18,701,149
AGE 54
TENURE AS CEO 2.9 years
CEO Bio

Mr. James Robert B. Quincey serves as Independent Director at Pfizer Inc. since February 27, 2020. He has been Chief Executive Officer of The Coca-Cola Company since May 1, 2017 and its Chairman of the Board since April 24, 2019. He serves as Director at Pfizer Limited since 2020. Mr. Quincey served as President until January 1, 2019 and served as its Chief Operating Officer of The Coca-Cola Company since August 13, 2015 until May 1, 2017. Mr. Quincey served as the Chief Operating Officer of The Coca-Cola Company since August 13, 2015 until May 1, 2017. Mr. Quincey served as the President of Europe Group at The Coca-Cola Company and Coca Cola International Corp. from January 1, 2013 to August 2015. He served as the President of the Northwest Europe and Nordics Business Unit at The Coca-Cola Company since January 1, 2013. He served as the President of Northwest Europe & Nordics Business Unit at The Coca-Cola Company until January 1, 2013. He served as the President of Mexico Division of Coca-Cola Co since December 2005 until 2008 and also served as its President of South Latin Division since December 2003. Mr. Quincey joined Coca-Cola Company in Atlanta in 1996 as Director of Learning Strategy of the Latin America Group until he moved to Mexico as deputy to the Division President in April 1999. He served as a Region Manager of Argentina & Uruguay since 2000 and then also served as a General Manager of the South Cone region (Argentina, Chile, Uruguay & Paraguay) since January 2003. Prior to joining Coca-Cola Company, he served for The Kalchas Group, as a Partner in strategy consulting. He has been a Director of The Coca-Cola Company since April 26, 2017. He served as a Director of Embotelladora Andina S.A., since April 2006. Mr. Quincey serves as vice co-chair of The Consumer Goods Forum and is a founding member of the New York Stock Exchange Board Advisory Council. Mr. Quincey holds B.A. a in Electronic Engineering from the University of Liverpool and is an Electronic Engineer.

CEO Compensation
  • James Robert's compensation has been consistent with company performance over the past year, both up more than 20%.
  • James Robert's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Coca-Cola management team in years:

1.3
Average Tenure
53.5
Average Age
  • The average tenure for the Coca-Cola management team is less than 2 years, this suggests a new team.
Management Team

James Robert Quincey

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
54
TENURE
2.9 yrs

Brian Smith

TITLE
President & COO
COMPENSATION
$9M
AGE
64
TENURE
1.3 yrs

John Murphy

TITLE
Executive VP & CFO
COMPENSATION
$9M
AGE
57
TENURE
1.1 yrs

Manolo Prieto

TITLE
CMO & Group President of Asia Pacific
COMPENSATION
$5M
AGE
51
TENURE
0.3 yrs

Jim Dinkins

TITLE
Senior VP & President of North America
COMPENSATION
$5M
AGE
55

Mark Randazza

TITLE
VP, Assistant Controller & Chief Accounting Officer
AGE
53

Barry Simpson

TITLE
Senior VP
AGE
59
TENURE
3.5 yrs

Tim Leveridge

TITLE
VP & Investor Relations Officer
AGE
49

Beatriz Perez

TITLE
Senior VP and Chief Communications
AGE
49
TENURE
2.9 yrs

Lisa Chang

TITLE
Chief People Officer & Senior VP
AGE
50
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Coca-Cola board of directors in years:

12.5
Average Tenure
70
Average Age
  • The average tenure for the Coca-Cola board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Steve Chan

TITLE
Chairman of Coca-Cola China Limited
AGE
62
TENURE
19.7 yrs

James Robert Quincey

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
54
TENURE
1 yrs

Zahi Khouri

TITLE
Chairman of Palestinian National Beverage Company & CEO of Palestinian National Beverage Company

John Brock

TITLE
Chairman of Coca-Cola Enterprises Inc
AGE
70
TENURE
12 yrs

Ron Allen

TITLE
Independent Director
COMPENSATION
$273K
AGE
77
TENURE
29.3 yrs

Barry Diller

TITLE
Independent Director
COMPENSATION
$271K
AGE
77
TENURE
18.3 yrs

Mel Lagomasino

TITLE
Lead Independent Director
COMPENSATION
$308K
AGE
70
TENURE
1 yrs

Helene Gayle

TITLE
Independent Director
COMPENSATION
$266K
AGE
63
TENURE
7 yrs

Herb Allen

TITLE
Director
COMPENSATION
$270K
AGE
79
TENURE
38.3 yrs

Alexis Herman

TITLE
Independent Director
COMPENSATION
$306K
AGE
71
TENURE
12.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Coca-Cola individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Feb 20 Buy Lisa Chang Individual 06. Feb 20 06. Feb 20 425 $59.27 $25,191
25. Oct 19 Buy Lisa Chang Individual 24. Oct 19 24. Oct 19 500 $54.55 $27,275
15. Aug 19 Buy Lisa Chang Individual 13. Aug 19 13. Aug 19 500 $53.24 $26,618
15. May 19 Sell Nancy Quan Individual 13. May 19 13. May 19 -23,320 $47.95 $-1,118,308
X
Management checks
We assess Coca-Cola's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Coca-Cola has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Despite Its High P/E Ratio, Is The Coca-Cola Company (NYSE:KO) Still Undervalued?

See our latest analysis for Coca-Cola How Do You Calculate Coca-Cola's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Coca-Cola: P/E of 31.45 = $53.74 ÷ $1.71 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:KO Price Estimation Relative to Market, August 26th 2019 Its relatively high P/E ratio indicates that Coca-Cola shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

Do Institutions Own The Coca-Cola Company (NYSE:KO) Shares?

See our latest analysis for Coca-Cola NYSE:KO Ownership Summary, August 16th 2019 What Does The Institutional Ownership Tell Us About Coca-Cola? … We can see that Coca-Cola does have institutional investors; and they hold 60% of the stock. … Insider Ownership Of Coca-Cola While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

The Coca-Cola Company (NYSE:KO) Earns A Nice Return On Capital Employed

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Coca-Cola: 0.16 = US$9.6b ÷ (US$90b - US$29b) (Based on the trailing twelve months to June 2019.) Therefore, Coca-Cola has an ROCE of 16%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … What We Can Learn From Coca-Cola's ROCE While its ROCE looks good, it's worth remembering that the current liabilities are making the business look better.

Simply Wall St -

Have Investors Priced In The Coca-Cola Company's (NYSE:KO) Growth?

As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Coca-Cola is available at price-to-earnings ratio of 33.02x, showing us it is overvalued compared to the US market average ratio of 18.01x , and overvalued based on current earnings compared to the Beverage industry average of 30.57x. … NYSE:KO Price Estimation Relative to Market, July 24th 2019 After looking at KO's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … So, when we include the growth factor in our analysis, Coca-Cola appears overvalued , based on fundamental analysis.

Simply Wall St -

Is The Coca-Cola Company (NYSE:KO) An Attractive Dividend Stock?

Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. … Cash is slightly more important than profit from a dividend perspective, but given Coca-Cola's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. In the last five years, Coca-Cola's earnings per share have shrunk at approximately 3.2% per annum. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is The Coca-Cola Company's (NYSE:KO) 36% ROE Better Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Coca-Cola: 36% = US$7.0b ÷ US$20b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Coca-Cola Have A Good Return On Equity? … Combining Coca-Cola's Debt And Its 36% Return On Equity Coca-Cola does use a significant amount of debt to increase returns.

Simply Wall St -

Estimating The Intrinsic Value Of The Coca-Cola Company (NYSE:KO)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Coca-Cola Company (NYSE:KO) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $6.22k $8.20k $8.86k $9.42k $9.91k $10.35k $10.75k $11.14k $11.51k $11.87k Growth Rate Estimate Source Analyst x7 Analyst x8 Analyst x6 Est @ 6.24% Est @ 5.18% Est @ 4.45% Est @ 3.93% Est @ 3.57% Est @ 3.32% Est @ 3.14% Present Value ($, Millions) Discounted @ 7.57% $5.78k $7.09k $7.12k $7.03k $6.88k $6.68k $6.45k $6.21k $5.96k $5.72k Present Value of 10-year Cash Flow (PVCF)= $64.92b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$12b × (1 + 2.7%) ÷ (7.6% – 2.7%) = US$252b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$252b ÷ ( 1 + 7.6%)10 = $121.27b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $186.19b.

Simply Wall St -

What Kind Of Shareholder Appears On The The Coca-Cola Company's (NYSE:KO) Shareholder Register?

The big shareholder groups in The Coca-Cola Company (NYSE:KO) have power over the company. … Coca-Cola is a pretty big company. … Normally institutions would own a significant portion of a company this size.

Simply Wall St -

What Does The Coca-Cola Company's (NYSE:KO) P/E Ratio Tell You?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use The Coca-Cola Company's (NYSE:KO) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

The Coca-Cola Company (NYSE:KO): Is It A Good Long Term Opportunity?

The Coca-Cola Company's (NYSE:KO) latest earnings announcement in December 2018a … signalled … business

Simply Wall St -

Company Info

Description

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, 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, Dasani, glacéau smartwater, glacéau vitaminwater, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, Minute Maid Pulpy, Simply, ZICO, Ayataka, Costa, dogadan, FUZE TEA, Georgia, Gold Peak, HONEST TEA, and Kochakaden brands. It operates through a network of company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

Details
Name: The Coca-Cola Company
KO
Exchange: NYSE
Founded: 1886
$188,179,788,402
4,293,401,515
Website: http://www.coca-colacompany.com
Address: The Coca-Cola Company
One Coca-Cola Plaza,
Atlanta,
Georgia, 30301,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KO Common Stock New York Stock Exchange US USD 02. Jan 1968
DB CCC3 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA CCC3 Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
SWX KO Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG KO Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE KO Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
KAS US_KO__ Common Stock Kazakhstan Stock Exchange KZ KZT 02. Jan 1968
BMV KO * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BVL KO Common Stock Bolsa de Valores de Lima PE USD 02. Jan 1968
ETLX COK-U Common Stock Eurotlx IT EUR 02. Jan 1968
BOVESPA COCA34 BDR EACH REPR 1 COM USD0.25 Bolsa de Valores de Sao Paulo BR BRL 25. Jul 2011
BASE KO CEDEARS EACH 5 REP 1 COM USD0.25 Buenos Aires Stock Exchange AR ARS 17. Feb 2000
Number of employees
Current staff
Staff numbers
86,200
Coca-Cola employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 03:29
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/24
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.