Coca-cola Company Stock Intrinsic Value – Coca-Cola: Still Not Ready For Investment
December 27, 2023
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COCA-COLA ($NYSE:KO): Coca-Cola is one of the world’s leading beverage companies, bringing a wide range of drinks to the market including sparkling beverages, juices, coffee, tea, sports drinks, and more.
However, it is still not the right moment to purchase Coca-Cola stock yet. This has been due to diminishing sales of carbonated drinks, increased competition, and a shift to healthier beverages. Furthermore, Coca-Cola’s debt has been increasing over the last couple of years, and the company has reported lower profits in recent quarters. This could be a sign of trouble for the company’s future prospects, so it may be wise to wait and see how Coca-Cola fares in the coming quarters before investing in the company. Despite these risks, Coca-Cola is a well-established and highly profitable company with an extensive presence all over the world, so it could still be an attractive option for long-term investors.
Share Price
On Tuesday, COCA-COLA COMPANY stock opened at $58.1 and closed at $58.6, up by 0.4% from prior closing price of 58.3. While this is a minor move, it doesn’t necessarily mean that COCA-COLA COMPANY is ready for investment. Analysts agree that the company still needs to tackle several challenges before investors can feel confident about its future prospects. The main area of concern is the company’s weak balance sheet, which has been weighed down by debt and declining revenue.
Additionally, the company needs to focus on its marketing strategy in order to increase sales and further boost its bottom line. Given these obstacles, COCA-COLA COMPANY is still not ready for investment at this time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coca-cola Company. More…
| Total Revenues | Net Income | Net Margin |
| 45.03k | 10.77k | 25.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coca-cola Company. More…
| Operations | Investing | Financing |
| 11.88k | -997 | -9.26k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coca-cola Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 97.58k | 69.75k | 6.09 |
Key Ratios Snapshot
Some of the financial key ratios for Coca-cola Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.4% | 12.7% | 32.0% |
| FCF Margin | ROE | ROA |
| 22.6% | 34.4% | 9.2% |
Analysis – Coca-cola Company Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of COCA-COLA COMPANY‘s wellbeing. After careful evaluation of the company’s balance sheets and other relevant data, we have determined the fair value of COCA-COLA COMPANY shares to be around $64.6 through our proprietary Valuation Line. Currently, COCA-COLA COMPANY stock is traded at $58.6, which means it is undervalued by 9.3%. This presents an opportunity for investors to acquire the company’s shares for a lower price than its actual worth. We believe that this is an attractive investment option for anyone looking to diversify their portfolio. More…
Peers
The Coca-Cola Company has been in competition with PepsiCo, Inc. since the late 1800s. The two companies have been fighting for market share ever since. More recently, Keurig Dr Pepper Inc. and Monster Beverage Corp have become major competitors in the beverage industry.
– PepsiCo Inc ($NASDAQ:PEP)
PepsiCo is a food and beverage company with a market cap of $238.84 billion as of 2022. The company has a return on equity of 45.25%. PepsiCo operates in more than 200 countries and employs more than 300,000 people. The company’s products include Pepsi-Cola, Lay’s potato chips, Tropicana orange juice, and Quaker oats. PepsiCo was founded in 1898 and is headquartered in Purchase, New York.
– Keurig Dr Pepper Inc ($NASDAQ:KDP)
Keurig Dr Pepper Inc is a publicly traded company with a market capitalization of $53.5 billion as of May 2022. The company has a return on equity of 10.39%. Keurig Dr Pepper Inc is a leading beverage company that manufactures and markets coffee, tea, and other beverage products. The company operates in North America, Europe, and Asia Pacific. Keurig Dr Pepper Inc is headquartered in Burlington, Massachusetts.
– Monster Beverage Corp ($NASDAQ:MNST)
As of 2022, Monster Beverage Corporation had a market cap of $46.49 billion and a return on equity of 18.04%. The company produces and sells energy drinks, soda, and juice products under the Monster, NOS, and Full Throttle brands. It also has a minority stake in Reign Beverage Company. The company was founded in 1987 and is headquartered in Corona, California.
Summary
Coca-Cola is a prominent consumer staples company that is well-known for its namesake brand. While Coca-Cola has performed well historically, the current market conditions make it a risky investment. Analysts recommend that investors wait for a better entry point before investing in the company. While potential long-term growth opportunities still exist, the short-term risks are too high to justify buying Coca-Cola stock at this time.
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