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Relative to Consumer Staples Sector Median (N=180)
Metric
KO
Benchmark
P/E Ratio
23.9x
-28%
EV/EBITDA
22.6x
+226%
Price / Book
9.5x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-80.1%
$15.49Spot: $77.64
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
39.9%
Sector: 7.7%
Dividend Analysis audit
INCOME
3.07%
Trailing Yield
$3.07
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
73%MID
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, COCA COLA CO (KO) receives a "Hold" rating with a composite score of 51.9/100, ranked #812 out of 4446 stocks. Key factor scores: Quality 50/100, Value 57/100, Momentum 53/100. This is quantitative analysis only — not investment advice.
COCA COLA CO (KO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does COCA COLA CO Do?
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; flavored and enhanced water, and sports drinks; juice, dairy, and plantbased 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, dogadan, Dasani, glacéau smartwater, glacéau vitaminwater, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, Minute Maid Pulpy, Simply, Ayataka, BODYARMOR, Costa, FUZE TEA, Georgia, and Gold Peak brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia. COCA COLA CO (KO) is classified as a mega-cap stock in the Consumer Staples sector, specifically within the Candy & Soda industry. The company is led by CEO James Quincey and employs approximately 82,500 people, headquartered in Atlanta, Georgia. With a market capitalization of $327.5B, KO is one of the largest companies in the Consumer Staples sector.
COCA COLA CO (KO) Stock Rating — Hold (April 2026)
As of April 2026, COCA COLA CO receives a Hold rating with a composite score of 51.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.KO ranks #812 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, COCA COLA CO ranks #26 of 180 stocks, placing it in the top quartile of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
KO Stock Price and 52-Week Range
COCA COLA CO (KO) currently trades at $77.64. The stock lost $0.54 (0.7%) in the most recent trading session. The 52-week high for KO is $82.00, which means the stock is currently trading -5.3% from its annual peak. The 52-week low is $65.35, putting the stock 18.8% above its annual trough. Recent trading volume was 11.1M shares, indicating strong institutional interest and high liquidity.
Is KO Overvalued or Undervalued? — Valuation Analysis
COCA COLA CO (KO) carries a value factor score of 57/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 23.90x, compared to the Consumer Staples sector average of 33.11x — a discount of 28%. The price-to-book ratio stands at 9.53x, versus the sector average of 1.74x. The price-to-sales ratio is 6.81x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, KO trades at 22.59x EV/EBITDA, versus 6.93x for the sector.
Overall, KO's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
COCA COLA CO Profitability — ROE, Margins, and Quality Score
COCA COLA CO (KO) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 39.9%, compared to the Consumer Staples sector average of 7.7%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 13.0% versus the sector average of 3.1%.
On a margin basis, COCA COLA CO reports gross margins of 61.8%, compared to 26.2% for the sector. The operating margin is 30.0% (sector: 2.9%). Net profit margin stands at 28.5%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at 0.7% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
KO Debt, Balance Sheet, and Financial Health
COCA COLA CO has a debt-to-equity ratio of 206.0%, compared to the Consumer Staples sector average of 72.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.46x, suggesting adequate working capital coverage. Cash and equivalents stand at $12.73B.
KO has a beta of 0.16, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for COCA COLA CO is 97/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
COCA COLA CO Revenue and Earnings History — Quarterly Trend
In TTM 2026, COCA COLA CO reported revenue of $47.97B and earnings per share (EPS) of $3.05. Net income for the quarter was $13.67B. Gross margin was 61.8%. Operating income came in at $14.43B.
In FY 2025, COCA COLA CO reported revenue of $47.94B and earnings per share (EPS) of $3.05. Net income for the quarter was $13.14B. Gross margin was 61.6%. Revenue grew 1.9% year-over-year compared to FY 2024. Operating income came in at $13.76B.
In Q3 2025, COCA COLA CO reported revenue of $12.46B and earnings per share (EPS) of $0.86. Net income for the quarter was $3.68B. Gross margin was 61.5%. Revenue grew 5.1% year-over-year compared to Q3 2024. Operating income came in at $3.98B.
In Q2 2025, COCA COLA CO reported revenue of $12.54B and earnings per share (EPS) of $0.89. Net income for the quarter was $3.80B. Gross margin was 62.4%. Revenue grew 1.4% year-over-year compared to Q2 2024. Operating income came in at $4.28B.
Over the past 8 quarters, COCA COLA CO has demonstrated a growth trajectory, with revenue expanding from $12.36B to $47.97B. Investors analyzing KO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
KO Dividend Yield and Income Analysis
COCA COLA CO (KO) currently pays a dividend yield of 3.1%. At this yield, a $10,000 investment in KO stock would generate approximately $$307.00 in annual dividend income. This compares to the Consumer Staples sector average dividend yield of 0.4%, meaning KO offers above-average income for its sector. With a net margin of 28.5%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
KO Momentum and Technical Analysis Profile
COCA COLA CO (KO) has a momentum factor score of 53/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
KO vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing KO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KO vs S&P 500 (SPY) comparison to assess how COCA COLA CO stacks up against the broader market across all factor dimensions.
KO Next Earnings Date
No upcoming earnings date has been announced for COCA COLA CO (KO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy KO? — Investment Thesis Summary
COCA COLA CO presents a balanced picture with arguments on both sides. Low volatility (stability score 97/100) reduces downside risk.
In summary, COCA COLA CO (KO) earns a Hold rating with a composite score of 51.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KO stock.
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Institutional Research Dossier
COCA COLA CO (KO) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Coca-Cola (KO), driven by its strong brand equity and global distribution network, which provide a significant competitive advantage. However, the company's relatively slow revenue growth and high valuation compared to its growth prospects limit its upside potential, justifying a neutral stance. While Coca-Cola's stability and profitability are attractive, investors should be mindful of potential headwinds from changing consumer preferences and increasing competition in the beverage industry.
The company's impressive margins and returns on equity are offset by its high debt-to-equity ratio and modest revenue growth. The current valuation, while lower than the sector average in terms of P/E and EV/EBITDA, does not fully compensate for the limited growth opportunities. Therefore, we believe that Coca-Cola is fairly valued at its current price, and a Hold rating is warranted until there is a significant change in its growth trajectory or valuation.
Business Strategy & Overview
The Coca-Cola Company operates as a global beverage giant, manufacturing, marketing, and selling a diverse portfolio of non-alcoholic beverages. Its core strategy revolves around maintaining and expanding its brand portfolio, leveraging its extensive distribution network, and innovating to meet evolving consumer preferences. The company generates revenue primarily through the sale of concentrates and syrups to bottling partners, as well as finished beverage products directly to retailers and consumers. Coca-Cola's strategic positioning is built on its iconic brands, such as Coca-Cola, Sprite, and Fanta, which command significant market share in various regions worldwide.
Coca-Cola's business model relies heavily on its bottling partners, who are responsible for manufacturing, packaging, and distributing the company's beverages. This partnership model allows Coca-Cola to focus on brand management, marketing, and innovation, while leveraging the local expertise and infrastructure of its bottling partners. The company also invests in research and development to create new products and flavors, catering to changing consumer tastes and preferences. Recent product innovations include sugar-free versions of its flagship brands and the expansion into healthier beverage options, such as flavored water and plant-based beverages.
The company's industry context is characterized by intense competition from other beverage companies, including PepsiCo, Keurig Dr Pepper, and various smaller players. Coca-Cola faces challenges from changing consumer preferences, such as the increasing demand for healthier and more sustainable beverage options. To address these challenges, the company is focusing on expanding its portfolio of healthier beverages, reducing its environmental footprint, and investing in marketing campaigns that promote its brands and products. Coca-Cola also faces regulatory scrutiny regarding the health impacts of its sugary drinks, which could lead to increased taxes or restrictions on marketing and sales.
Coca-Cola's strategic priorities include driving revenue growth through innovation and expansion into new markets, improving operational efficiency to enhance profitability, and strengthening its relationships with bottling partners. The company is also focused on building a more sustainable business by reducing its water usage, minimizing its carbon emissions, and promoting responsible packaging. Coca-Cola's long-term success depends on its ability to adapt to changing consumer preferences, navigate regulatory challenges, and maintain its competitive advantage in the global beverage market.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
0.7%
Sector: 3.1%
-76% VS SCTR
Economic Moat Analysis
Coca-Cola possesses a wide economic moat, primarily driven by its unparalleled brand intangible assets and extensive distribution network. The Coca-Cola brand is one of the most recognized and valuable brands in the world, commanding significant consumer loyalty and pricing power. This brand equity allows Coca-Cola to charge a premium for its products and maintain its market share despite intense competition. The company's distribution network is also a significant competitive advantage, reaching virtually every corner of the globe and ensuring that its products are readily available to consumers.
The strength of Coca-Cola's brand is evident in its consistent financial performance and ability to generate high returns on invested capital. The company's brand equity is built on decades of marketing investments, product innovation, and consistent quality. Coca-Cola's marketing campaigns are legendary, creating strong emotional connections with consumers and reinforcing the brand's image. The company also invests heavily in product innovation, developing new flavors and formulations to cater to changing consumer tastes and preferences.
Coca-Cola's distribution network is a complex and highly efficient system that spans the globe. The company works with a network of independent bottling partners, distributors, and retailers to ensure that its products are available in a wide range of outlets, from supermarkets and convenience stores to restaurants and vending machines. This extensive distribution network is difficult for competitors to replicate, providing Coca-Cola with a significant competitive advantage. The company's bottling partners have deep local expertise and infrastructure, allowing them to efficiently manufacture, package, and distribute Coca-Cola's beverages in their respective markets.
While Coca-Cola's moat is wide, it is not impenetrable. Changing consumer preferences, such as the increasing demand for healthier beverages, pose a potential threat to the company's market share. Competitors are also investing heavily in marketing and product innovation, attempting to erode Coca-Cola's brand equity. However, Coca-Cola's strong brand, extensive distribution network, and proven ability to adapt to changing market conditions provide it with a significant competitive advantage that is likely to persist for the foreseeable future. The moat is stable, but requires constant investment and adaptation to maintain its width.
Financial Health & Profitability
Coca-Cola exhibits a strong financial profile, characterized by high profitability, robust margins, and a stable balance sheet. The company's revenue has shown modest growth over the past few years, with revenue increasing from $45.75 billion in FY2023 to $47.94 billion in FY2025. While the 0.7% revenue growth from FY2024 to FY2025 is below the sector average of 4.3%, Coca-Cola's focus on profitability has resulted in impressive margins. Gross margin consistently remains above 60%, and operating margin is around 30%, significantly higher than the sector averages of 26.0% and 3.1%, respectively. This demonstrates Coca-Cola's pricing power and efficient cost management.
Coca-Cola's net income has also shown consistent growth, increasing from $10.70 billion in FY2023 to $13.14 billion in FY2025. The company's return on equity (ROE) is exceptionally high at 39.9%, far exceeding the sector average of 7.8%. This indicates that Coca-Cola is effectively utilizing its equity to generate profits. However, the company's debt-to-equity ratio is also high at 206.00, significantly above the sector average of 70.50. This suggests that Coca-Cola relies heavily on debt financing, which could increase its financial risk.
The company's current ratio of 1.46 indicates that it has sufficient liquid assets to cover its short-term liabilities. Coca-Cola also maintains a healthy cash balance of $12.73 billion, providing it with financial flexibility to pursue strategic initiatives, such as acquisitions and share repurchases. The company's free cash flow is not available in the provided data, but its consistent profitability suggests that it generates significant cash flow from operations.
Analyzing the quarterly financial history reveals a consistent trend of high gross and operating margins. However, the free cash flow in Q3 FY2025 is negative, which could be a cause for concern. Overall, Coca-Cola's financial health is strong, but investors should monitor its debt levels and free cash flow generation to ensure that it maintains its financial stability. The high debt-to-equity ratio warrants close monitoring, as it could limit the company's financial flexibility in the future.
Valuation Assessment
Coca-Cola's valuation presents a mixed picture. The company's P/E ratio of 24.5x is lower than the consumer staples sector average of 34.2x, suggesting that it may be relatively undervalued compared to its peers. Similarly, its EV/EBITDA ratio of 5.8x is also lower than the sector average of 7.3x, further supporting the notion that Coca-Cola is attractively valued. However, these multiples must be considered in the context of the company's growth prospects and financial health.
While Coca-Cola's valuation multiples are lower than the sector averages, its revenue growth is also relatively slow. The company's revenue growth of 0.7% is significantly below the sector average of 4.3%, indicating that its growth potential may be limited. This suggests that the lower valuation multiples may be justified by the company's slower growth rate. Investors should also consider Coca-Cola's high debt-to-equity ratio when assessing its valuation. The company's reliance on debt financing could increase its financial risk and limit its ability to invest in future growth opportunities.
Given Coca-Cola's strong brand equity, consistent profitability, and stable financial performance, it is reasonable to expect a premium valuation. However, the company's slow revenue growth and high debt levels may limit its upside potential. The current valuation appears to be fair, reflecting a balance between its strengths and weaknesses. A discounted cash flow (DCF) analysis, which is not possible with the provided data, would provide a more comprehensive assessment of Coca-Cola's intrinsic value.
Overall, Coca-Cola's valuation is neither significantly cheap nor excessively expensive. The company's lower P/E and EV/EBITDA ratios compared to the sector are offset by its slower revenue growth and high debt-to-equity ratio. Investors should carefully consider these factors when evaluating Coca-Cola's investment potential. A Hold rating is appropriate, as the current valuation reflects the company's fair value, given its growth prospects and financial health. Any significant change in its growth trajectory or financial performance could warrant a reevaluation of its valuation.
Risk & Uncertainty
Coca-Cola faces several risks and uncertainties that could impact its future performance. One of the most significant risks is changing consumer preferences, particularly the increasing demand for healthier beverages. Consumers are becoming more health-conscious and are reducing their consumption of sugary drinks, which could negatively impact Coca-Cola's sales. The company is attempting to address this risk by expanding its portfolio of healthier beverages, but it faces intense competition from other beverage companies that are also targeting the health-conscious consumer.
Another risk is regulatory scrutiny regarding the health impacts of sugary drinks. Governments around the world are considering or implementing taxes and regulations on sugary drinks, which could increase the cost of Coca-Cola's products and reduce demand. The company also faces potential legal challenges related to the health impacts of its products. These regulatory and legal risks could significantly impact Coca-Cola's profitability and growth prospects.
Coca-Cola also faces competition from other beverage companies, including PepsiCo, Keurig Dr Pepper, and various smaller players. These competitors are investing heavily in marketing and product innovation, attempting to erode Coca-Cola's market share. The company must continue to innovate and invest in its brands to maintain its competitive advantage. Furthermore, Coca-Cola's reliance on independent bottling partners creates a potential risk. Any disruption in the bottling network could negatively impact the company's ability to distribute its products. The company mitigates this risk by maintaining strong relationships with its bottling partners and diversifying its bottling network.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCoca-Cola's iconic brand and global distribution network provide a sustainable competitive advantage, ensuring consistent profitability and market leadership.
BULL VIEWThe company's focus on innovation and expansion into healthier beverage options will drive future growth and attract health-conscious consumers.
BULL VIEWCoca-Cola's strong cash flow generation and commitment to returning capital to shareholders make it an attractive investment for income-seeking investors.
The Bear Case
BEAR VIEWCoca-Cola's slow revenue growth and high debt levels limit its upside potential and make it vulnerable to economic downturns.
BEAR VIEWChanging consumer preferences and increasing regulatory scrutiny regarding sugary drinks pose a significant threat to the company's long-term growth prospects.
BEAR VIEWThe company's high valuation relative to its growth rate makes it an overvalued investment with limited margin of safety.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score KO and 4,400+ other equities.
COCA COLA CO exhibits a 616% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
13.0%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
61.8%
Sector: 26.2%
Operating Margin
Core business profitability
30.0%
Sector: 2.9%
Net Margin
Bottom-line profitability
28.5%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.38%
Yield Delta+708%
Income Projection audit
A $10,000 investment would generate approximately $307 annually in dividends at the current trailing rate.
