Superworth

Coca-Cola KO

Beverages - Non-Alcoholic, Consumer Defensive
$92.71
−2.76%
Market cap
$398.9B
PE
27.8×
10y median 27.8×
Forward PE
27.3×
10y median 23.9×
Price to sales
8.0×
EV/EBIT
28.8×
Revenue, 12 months
$50.1B
+7% on a year ago
Net margin
28.6%
Free cash flow yield
3.6%

A Superworth story

Priced as if the old soda giant has found a new gear

People are buying more Coke and margins sit near a decade high, but the shares have run well ahead of the profit

  1. The richest price on its sales in ten years

    Coca-Cola now costs about eight times its yearly sales, the most in ten years and well above its usual level of a little over six. The shares have climbed by more than a third in a year and hit their highest price ever last week. That is a growth-stock price for a company that has sold soda since 1886.

  2. It sold the bottling plants and kept the profit

    Coca-Cola once ran many of its own bottling plants. Selling most of them between 2017 and 2019 lifted its operating margin from about a fifth of sales to more than a quarter, since concentrate, the syrup bottlers turn into drinks, keeps far more of each dollar. A charge for fairlife, its milk brand, pulled 2024 down. Over the last four quarters it kept about 30 cents a dollar, close to its best in ten years.

  3. People are buying more of it again

    The growth is coming from more drinks, not only higher prices. In the second quarter, which ended in early July, Coca-Cola sold 5% more cases, led by India, China, the US and Brazil, with Coke Zero Sugar growing fastest. Revenue over four quarters grew 6.5% on a year earlier, the quickest pace in three years.

  4. The price ran well ahead of the profit

    Earnings per share over the last four quarters rose 18% in a year, or about 11% leaving out one-off items. The share price rose by more than a third, about three times as fast as the adjusted profit. So investors now pay noticeably more for each dollar of Coca-Cola's profit than they did a year ago.

  5. The fear is a court case worth billions

    Free cash flow, the cash left after investment, dipped twice. In September 2024 Coca-Cola deposited 6.0 billion dollars with the IRS, about five months of today's free cash flow, while it appeals a loss over how it priced dealings with its foreign units. A similar fairlife payment followed in early 2025. The court heard the appeal in June. A loss means none of the deposit comes back, and likely more for later years.

  6. Near its dearest in five years on next year's profit

    Analysts expect adjusted earnings over the next twelve months only about 5% above the last four quarters, which a longer first quarter flattered. Revenue is set to dip as Coca-Cola sells its African bottler. On those forecasts the shares cost about 27 times earnings, more than on almost any day in five years (history before late September is rebuilt with hindsight).

  7. The bet is that management, not the analysts, has the pace right

    Management guides comparable earnings up 9% to 10% this year, nearly twice the pace analysts expect over the next twelve months. At its usual multiple on forecasts, the shares would sit near their mid-July level, about an eighth lower. With no founder or disruption story, the price rests on the brand compounding. The third-quarter report later this month shows whether volume keeps growing and the guidance holds.

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Charts

Financials

Income statement for KO, by quarter
Income statementQ3 FY23Q4 FY23Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26
$12B+8%$10.8B+7%$11.3B+3%$12.4B+3%$11.9B−1%$11.5B+6%$11.1B−2%$12.5B+1%$12.5B+5%$11.8B+2%$12.5B+12%$13.4B+7%
Cost of revenue$4.7B+2%$4.6B+3%$4.2B−2%$4.8B−2%$4.7B+0%$4.6B−1%$4.2B−2%$4.7B−2%$4.8B+3%$4.7B+2%$4.6B+11%$5B+5%
Gross profit$7.3B+12%$6.2B+11%$7.1B+6%$7.6B+7%$7.2B−2%$6.9B+12%$7B−1%$7.8B+4%$7.7B+7%$7.1B+2%$7.9B+13%$8.4B+8%
SG&A$3.7B+12%$3.8B+11%$3.4B+5%$3.5B+7%$3.6B−1%$4B+7%$3.2B−4%$3.5B−2%$3.6B−1%$4.2B+4%$3.5B+7%$3.7B+7%
$3.3B+6%$2.3B+10%$2.1B−36%$2.6B+10%$2.5B−23%$2.7B+19%$3.7B+71%$4.3B+63%$4B+59%$1.8B−32%$4.4B+19%$4.7B+9%
Interest expense$368M+86%$413M+36%$382M+3%$418M+12%$425M+16%$431M+4%$387M+1%$445M+7%$391M−8%$431M+0%$375M−3%$369M−17%
Pre-tax income$3.5B+3%$2.5B−1%$3.9B−5%$3B+5%$3.4B−4%$2.8B+13%$4.1B+5%$4.8B+58%$4.2B+24%$3B+6%$4.6B+14%$5.5B+14%
$454M−27%$496M+12%$687M−27%$627M+75%$530M+17%$593M+20%$722M+5%$993M+58%$500M−6%$646M+9%$645M−11%$1B+4%
Net income$3.1B+9%$2B−3%$3.2B+2%$2.4B−5%$2.8B−8%$2.2B+11%$3.3B+5%$3.8B+58%$3.7B+30%$2.3B+4%$3.9B+18%$4.4B+16%
$0.71+9%$0.46−2%$0.74+3%$0.56−5%$0.66−7%$0.51+11%$0.77+4%$0.88+57%$0.86+30%$0.53+4%$0.91+18%$1.03+17%
4.3B−0%4.3B−0%4.3B−1%4.3B−1%4.3B−0%4.3B−0%4.3B−0%4.3B−0%4.3B−0%4.3B−0%4.3B+0%4.3B+0%

EPS, diluted: 35 periods, Q4 FY95 to Q4 FY25: quarter's net income to common over its shares, to the cent.

Diluted shares: 29 periods, Q4 FY95 to Q4 FY25: share-days: the 12-month average less the 9-month, weighted by days. Q4 FY99 and Q4 FY17: a loss quarter: its basic count, share-days: the 12-month average less the 9-month, weighted by days.

From each company's 10-Q and 10-K filings, the newest version of each figure. Quarters are as filed (a fourth quarter is the year less its first nine months), fiscal years as the 10-K prints them, restated where a later 10-K restated them, and balance sheet lines as of the period's end. A quarter whose 10-Q isn't filed yet is from the company's results release. Growth is on the same period a year earlier. A dash is a period with no figure for the line: the filing doesn't print it, or it hasn't been read yet.

Estimates

Next earnings report: .

QuarterRevenueRangeEPSRangeAnalysts
Q3 FY26$12.9B$12.8B to $13B$0.88$0.82 to $0.9013
Q4 FY26$11.1B$10.6B to $12.2B$0.60$0.56 to $0.6512
Q1 FY27$12.1B$11.6B to $13.1B$0.89$0.85 to $1.005
Q2 FY27$13.1B$12.6B to $14.3B$1.03$0.98 to $1.145
Q3 FY27$13B$12.5B to $14.2B$0.94$0.90 to $1.055
Q4 FY27$11.6B$11.2B to $12.7B$0.66$0.62 to $0.736
Q1 FY28$12.6B$12.1B to $13.7B$0.97$0.92 to $1.086
Q2 FY28$13.8B$13.3B to $15B$1.12$1.07 to $1.256

Peers

Companies in Beverages - Non-Alcoholic nearest Coca-Cola's size, closest first.

CompanyMarket capPEIts 10y median PEFwd PEP/SRevenue growthNet margin
KOCoca-Cola$398.9B27.8×27.8×27.3×8.0×+7%28.6%
PEPPepsiCo$185B17.1×25.9×16.0×1.9×+6%11.1%
MNSTMonster Beverage$90.5B42.8×37.9×37.4×9.8×+20%23.1%
KDPKeurig Dr Pepper$47.2B35.0×25.9×14.2×2.3×+27%7.1%
Peer median$90.5B35.0×25.9×16.0×2.3×+20%11.1%

Investors who own it

Investors we follow who held Coca-Cola at the end of Jun 30, 2026, from their 13F filings.

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About

Chief executive
Henrique Braun, since 2026Longtime Coca-Cola executive, CEO since March 2026. James Quincey is executive chair. Source
Industry
Beverages - Non-Alcoholic
Sector
Consumer Defensive

Valuation data, not investment advice. Prices as of .