The business portfolio comprises over 200 types of beverages, sold in more than 200 countries targeting a wide range of age groups. Most revenue is generated in North America (34.1%), while Europe, Middle East and Africa (17%) and Latin America (10.7%) are also important revenue drivers. The Coca-Cola Company reported revenues of $10.13 https://investmentsanalysis.info/ billion in the last reported quarter, an increase of 7% YOY. Over the last four quarters, revenue estimates have been topped by the global beverage giant. In 2021, the YOY revenue gains was attributed to the volume growth, where a growth in the unit case volume was observed in almost all the operating segments and beverage types.
- As a thank you, The Coca-Cola Company and American Forest will plant a tree on your behalf at no cost to you.
- The investment would be up a staggering 2,232.7% over the last 33 years, representing an average annual return of 67.7%.
- Customized to investor preferences for risk tolerance and income vs returns mix.
- All shareholders shown on the account must sign the written request.
So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Coca-Cola generated free cash flow amounting to a very robust 87% of its EBIT, more than we’d expect. Since publicly traded Coca-Cola shares are worth a very impressive total of US$275.0b, it seems unlikely that this level of liabilities would be a major threat.
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Our healthy balance sheet and strong free cash flows enable us to invest in organic and inorganic opportunities, while paying a consistent dividend to our shareholders. The Coca-Cola Company’s share price is determined by its bid-ask spread, which is the difference between the price that buyers are willing to pay and the price that sellers are willing to accept. The Coca-Cola Company’s price can fluctuate throughout the course of each trading day—when you buy The Coca-Cola Company through Stash, we execute the market order during our next available trading window (we have two a day). At Stash, we don’t recommend trying to predict the market when buying investments. We believe it can be a better strategy to buy quality investments you believe in, then hang onto them. Despite those positive operating and financial trends, Coca-Cola stock is priced at just 6 times annual sales, which is close to its lowest valuation since the initial weeks of the pandemic.
Valuing The Coca-Cola Company stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of The Coca-Cola Company’s overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock. Its last close price was $60.22, which is 0.15% up on its pre-crash value of $60.13 and 66.03% up on the lowest point reached during the March crash when the shares fell as low as $36.27. Not every investment made by Buffett will be a winner, but the legendary investor has proved that many of Berkshire Hathaway’s top holdings have seen a nice return on investment when held for many years. The firm now owns 400 million shares of Coca-Cola, which makes up around 8.5% of its portfolio.
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Stocks Up, 15 Stocks Down: A Look At The Dow Jones Industrial Average Halfway Through 2023
In addition, the company also distributes other brands such as Dr. Pepper and its own products including Tum-E Yummies and Fuel in a Bottle. Eventually, businessman Asa Griggs Candler bought Coca-Cola and expanded the businesses well beyond Atlanta. By the end of the 19th century, demand for the drink skyrocketed, allowing the company to grow rapidly. Now, Coca-Cola is a household staple, with hundreds of brands under its umbrella.
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KO Earnings
This weak stock price performance implies that Wall Street has low expectations around sales and earnings growth over the short term, especially if consumer spending slows toward a recession. But Coke might still deliver impressive returns over several years, regardless of what selling conditions characterize the next few quarters. Is it a best first pick for new investors, or a growth powerhouse you want to build your portfolio around? There are companies out there capable of driving more growth. To invest your money in Coca-Cola, log onto your broker’s trading platform.
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Underscoring our commitment to ESG, as of December 31, 2021, 85% of our bottling operations’ power came from clean energy, up more than fourfold from 2015. Our water use ratio improved to an average of 1.47 liters of water per liter of beverage, an industry benchmark. Our use of recycled PET (rPET) in our packaging rose to 31%, accelerating the transition to a circular economy. Also, our company was recognized as members of the FTSE4GOOD Latin America Emerging Markets Index for the seventh consecutive year.
- The external fund manager backed by Berkshire Hathaway’s Charlie Munger, Li Lu, makes no bones about it when he says ‘The biggest investment risk is not the vol…
- Its roots began in 1886, when John Pemberton originally intended to patent the drink as a medicine.
- As a matter of fact, Berkshire Hathaway is the largest shareholder of The Coca-Cola Company, with nearly 10% of the capital owned by the investment firm.
- The Coca-Cola Company is a high quality dividend stock and a great investment to consider for all types of investors with steady and increasing top-line growth predicted.
Having said that, it’s clear that we should continue to monitor its balance sheet, lest it change for the worse. Robert Ottenstein, a bottom 22% analyst from Evercore ISI Group maintains KO with a buy rating and raises their KO price target from $68.00 to $70.00, on Apr 25, 2023. Steve Powers, a top 10% analyst from Deutsche Bank maintains KO with a hold rating and raises their KO price target from $61.00 to $63.00, on Apr 25, 2023. Carlos Laboy, a top 30% analyst from HSBC maintains KO with a strong buy rating and lowers their KO price target from $77.00 to $74.00, on Jun 7, 2023. Coca Cola stock last closed at $60.02, down 0.83% from the previous day, and has decreased 4.32% in one year.
Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site. However, https://day-trading.info/ The Coca-Cola Company’s P/E ratio is best considered in relation to those of others within the beverages-non-alcoholic industry or those of similar companies. In 1988, Buffett and Berkshire Hathaway made a splash by buying shares of Coca-Cola.
3 Things Investors Should Know About Coca-Cola Stock – The Motley Fool
3 Things Investors Should Know About Coca-Cola Stock.
Posted: Sun, 25 Jun 2023 15:30:00 GMT [source]
Founded in 1892 by pharmacist John Stith Pemberton, Coca-Cola is now one of the world’s largest companies. Coca-Cola is expected to post earnings of $0.64 per share, which means there will be no change from the year-ago quarter. The consensus earnings estimate for the fiscal year represents an increase, though. KO’s earnings are expected to grow from $2.60 per share to $2.79 per share in FY 2023, which signifies a 7.31% gain.
It has been selling products in the U.S. since 1886, becoming the world’s largest non-alcoholic beverage company along the way. By investing in funds that hold shares of Coca-Cola you can diversify your risk. You won’t have the full exposure that holding an individual stock does, although you also will dilute your potential gains if this stock does particularly well. Coca-Cola trades under the stock symbol KO on the New York Stock Exchange (NYSE).
It has underperformed other stocks in the Beverages – Non-Alcoholic industry by 0.26 percentage points. Coca Cola stock is currently +11.12% from its 52-week low of $54.02, and -8.32% from its 52-week high of $65.47. Coca-Cola is a successful company with a significant and steady profit increase over the years. For the first quarter of 2022, the soft drink giant posted a net profit of nearly $2.8 billion, up almost 24% compared to the same period in 2021. If you look back a little further, Coca-Cola’s net profit increased by 135% between the first quarter of 2017 and the first quarter of 2022. This spectacular growth occurred despite revenues being roughly equal between the two periods, as they only advanced by 15% between Q and Q1 2022.
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