Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The Coca-Cola Company is one of the world’s most recognized brands. Founded in 1886, the company today is vastly different from its creator’s original intent. The original formula was invented by John Stith Pemberton as a health drink, energy boost, and patent medicine following his time in the Civil War. The name is derived from two of the original ingredients coca leaves and kola nuts, although those ingredients are not used today, and was intended to be sold in pharmacies.

Underwriters of the original IPO received $100,000 worth of shares in compensation for the deal and were able to sell it for $2 billion at that time. The Coca-Cola Company is also a component of the Dow Jones Industrial Average holding its position from 1932 to 1935 and from 1987 to the present. Our company’s purpose is to refresh the world and make a difference. We sell multiple billion-dollar brands across several beverage categories worldwide. Our portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta.

1. The $113M settlement covered the actuarial losses, which means there no longer is any unfunded liability related to the plan.
2. At The Coca-Cola Company, we are in pursuit of becoming an even more consumer-centric total beverage company.
3. On average, they expect the company’s stock price to reach $67.00 in the next twelve months.

However, it’s sensible to consider The Coca-Cola Company’s PEG ratio in relation to those of similar companies. If a brand is a referral partner, we’re paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Upgrade to MarketBeat All Access to add more stocks to your watchlist.

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That’s relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of November 10, 2023 (20.44). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they’re over-valued. All things considered, this would be a good time to buy Coca-Cola shares — and then hold on to them to collect the solid dividend. The time to sell may come eventually, but for now, Coca-Cola remains a worthwhile long-term investment. That’s understandable, considering that Coca-Cola’s strategies for success, such as its streamlined product portfolio, are generating good financial results.

That’s an increase from last February’s original guidance of a minimum 7% growth. For example, in its third quarter, the company experienced 8% year-over-year revenue growth to $12 billion. Net income also rose in the quarter to $3.1 billion from the prior year’s $2.8 billion. It is also important to note the recent changes to analyst estimates for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

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Coca-Cola’s revenue resurgence is thanks to a strategy focused on improving the company’s return on invested capital. For instance, Coca-Cola pared back its portfolio of beverage brands from around 400 to 200, allowing it to concentrate on the products with strong revenue and profit growth. Although accounting for about half the company’s product portfolio, the eliminated brands represented only 1% of revenue. With an EBITDA of approximately $1.01B (defined as income from operations plus the depreciation and amortization expenses added back to the equation), the company is still trading at less than 8 times its EBITDA.

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Coke is calling for organic sales growth to slow for a second straight year, declining to between 6% and 7% gains in 2024. Investors are hoping that the company can get back to double-digit expansion that includes both rising prices and higher sales volumes. For now, though they’ll have to accept market share growth in a sluggish industry. Rival PepsiCo is calling for just 4% organic sales gains this year. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.

Another consideration in deciding whether to buy, hold, or sell Coca-Cola shares is the assessment of Wall Street analysts. Among this group, the average price target for Coca-Cola stock is currently $65.49, and the consensus is an overweight stock rating. Investors have to balance those positive factors against the likelihood that Coke will report some softer sales trends in fxprimus broker review the short term. The stock might respond to that sluggishness by staying relatively weak through most of 2024, but that’s a small price to pay to gain exposure to one of the strongest consumer staples companies on the planet. Coke deserves a spot on most investors’ watch lists for 2024 and beyond. Cash returns are another bright spot lifting shareholders’ overall returns.

Moreover, the company expects double-digit organic revenue growth for 2023, which is excellent, and its dividend looks secure given FCF is rising. Back in 2015, this bottling business accounted for over 50% of net revenue, and the company’s return on invested capital was about 17%. Thanks to refranchising, bottling operations now comprise less than 20% of net revenue; yet, Coca-Cola’s return on invested capital has risen to over 23%. The biggest knock against Coke’s business is that growth has been less than sparkling. Sure, organic sales gains were 12% in 2023 on top of a 16% spike in the prior year.

To see all exchange delays and terms of use please see Barchart’s disclaimer. 797 employees have rated Coca-Cola Chief Executive fxdd review Officer James Quincey on Glassdoor.com. James Quincey has an approval rating of 92% among the company’s employees.

The next debt maturity date is in November 2025 when the 3.80% senior bonds mature. But thanks to the high cash position and the fixed coupons on the debt, COKE actually reported a positive net interest income during 2023. The total capex was $282M, and this means the underlying free cash flow was approximately $610M.

KO Stock Analysis – Frequently Asked Questions

Our water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Gold Peak and Ayataka. Our juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. Coca-Cola met conservative second quarter 2020 earnings estimates on Tuesday morning, triggering a buy-the-news reaction, but a sharp Luno exchange review decline in quarterly revenues could dampen investor enthusiasm. As a result, rival PepsiCo looks like a better bet for long-term investors, especially with its competitive dividend yield of 3.07% compared to Coke’s 3.56%. Dow component The Coca-Cola Company (KO) is trading higher by more than 2% in Tuesday’s pre-market session after meeting second quarter 2020 earnings per share (EPS) estimates of $0.42.