Coca-Cola (KO)
Consumer Staples · $378B market cap · SEC CIK 0000021344
fundamentals score out of 100
Next reports on Oct 19, 2026, before the open, with analysts expecting $0.90 in earnings per share.
The case for KO
- Earns 43% back on shareholder equity.
- 29% of revenue drops through to net profit.
- Pays a 3.1% dividend while you wait.
- Gross margin of 62% absorbs cost shocks.
- Moves less than the market (beta 0.30).
The case against
- Priced at 7.5× sales with revenue growing only 6.5%.
- Only 40% of FY2025's $13.1B profit arrived as free cash.
- Free cash flow is only 1.4% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 26 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 69 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 82 |
| Momentumhow the price has behaved lately | 79 |
| Stabilityhow violently it moves, what it owes and what it pays you | 61 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
Key numbers
| Price / earnings | 26.4× |
|---|---|
| Price / book | 10.01× |
| Price / sales | 7.5× |
| Revenue growth (YoY) | +6.5% |
| EPS growth (YoY) | +17.6% |
| Gross margin | 62% |
| Operating margin | 30% |
| Net margin | 29% |
| Return on equity | 43% |
| Debt / equity | 1.20× |
| Current ratio | 1.30 |
| Dividend yield | 3.14% |
| Beta | 0.30 |
| 52-week range | $65.35 – $92.49 |
| Position in that range | 86% of the way up |
| 3-month return | +9.7% |
| 1-year return | +31.1% |
Five years of financials, as filed
Pulled from Coca-Cola's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $47.9B | $47.1B | $45.8B | $43.0B | $38.7B |
| Gross profit | $29.5B | $28.7B | $27.2B | $25.0B | $23.3B |
| Operating income | $13.8B | $10.0B | $11.3B | $10.9B | $10.3B |
| Net income | $13.1B | $10.6B | $10.7B | $9.5B | $9.8B |
| Operating cash flow | $7.4B | $6.8B | $11.6B | $11.0B | $12.6B |
| Capital expenditure | $2.1B | $2.1B | $1.9B | $1.5B | $1.4B |
| Total assets | $105B | $101B | $97.7B | $92.8B | $94.4B |
| Shareholder equity | $32.2B | $24.9B | $25.9B | $24.1B | $23.0B |
| Cash | $10.3B | $10.8B | $9.4B | $9.5B | $9.7B |
| Long-term debt | — | — | $35.5B | $36.4B | $38.1B |
| Free cash flow | $5.3B | $4.7B | $9.7B | $9.5B | $11.3B |
| Gross margin | 61.6% | 61.1% | 59.5% | 58.1% | 60.3% |
| Operating margin | 28.7% | 21.2% | 24.7% | 25.4% | 26.7% |
| Net margin | 27.3% | 22.6% | 23.4% | 22.2% | 25.3% |
| Diluted shares | 4.3B | 4.3B | 4.3B | 4.3B | 4.3B |
Share count is essentially flat over 4 years.
What Coca-Cola says it does
" of this report. Our ability to maintain or gain share of sales in the global market or in regional or local markets may be limited as a result of actions by competitors. Competitive pressures may cause the Company and our bottling partners to reduce prices we charge customers or may restrict our and our bottlers’ ability to increase prices, as may be necessary in response to commodity and other cost increases. Such pressures may also increase marketing costs along with in-store placement, slotting and other marketing fees. In addition, the rapid growth of e‑commerce may create additional consumer price deflation by, among other things, facilitating comparison shopping, and could potentially threaten the value of some of our legacy route-to-market strategies and thus negatively affect revenues. If we do not continuously strengthen our capabilities in marketing, data analytics (including artificial intelligence and machine…
Risk factors KO lists in its 10-K
- Recoverability of Equity Method Investments and Indefinite-Lived Intangible Assets
- Structural Changes, Acquired Brands and Newly Licensed Brands
- Selling, General and Administrative Expenses
- Operating Income and Operating Margin
- Cash Flows from Operating Activities
- Cash Flows from Investing Activities
- Purchases of Investments and Proceeds from Disposals of Investments
- Acquisitions of Businesses, Equity Method Investments and Nonmarketable Securities
- Proceeds from Disposals of Businesses, Equity Method Investments and Nonmarketable Securities
- Purchases of Property, Plant and Equipment
- Collateral (Paid) Received Associated with Hedging Activities — Net
- Cash Flows from Financing Activities
- Loans, Notes Payable and Long-Term Debt
- Proceeds from Sale of a Noncontrolling Interest