The Coca-Cola Company (KO): What Does Valuation Ratios Tell Us?

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The Coca-Cola Company (NYSE:KO) saw an upside of 0.25% to close Monday at $60.23 after adding $0.15 on the day. The 5-day average trading volume is 15,950,521 shares of the company’s common stock. It has gained $62.38 in the past week and touched a new high 1 time within the past 5 days. An average of 11,442,500 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 12,726,714.

KO’s 1-month performance is -4.08% or -$3.59 on its low of $59.40 reached on 01/20/23. The company’s shares have touched a 52-week low of $54.01 and high of $67.20, with the stock’s rally to the 52-week high happening on 01/09/23. YTD, KO has lost -5.31% or -$3.38 and has reached a new high 3 times. However, the current price is down -10.37% from the 52-week high price.

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Insider Transactions

KO stock investors last saw insider trading activity on Jan 17.SMITH BRIAN JOHN (Senior Executive) most recently sold 126,972 shares at $62.07 per share on Jan 17. This transaction cost the insider $7,881,317. Senior Executive, SMITH BRIAN JOHN, sold 94,200 shares at a price of $63.02 on Dec 16. Then, on Nov 18, SVP & Chief Technical Officer QUAN NANCY sold 13,746 shares at a price of $61.12 per share. This transaction amounted to $840,198.

Valuation Metrics

KO stock has a beta of 0.57. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 6.11 while the price-to-book (PB) in the most recent quarter is 11.43, with the price to cash flow ratio at 59.90.

The Coca-Cola Company’s quick ratio for the period ended September 29 was 1.00, with the current ratio over the same period at 1.10. As well, the company’s long term debt to equity for the quarter ending September 29 was 1.56, while the total debt to equity was 1.74. In terms of profitability, the gross margin trailing 12 months is 58.50%. The firm’s gross profit as reported stood at $23.3 billion against revenue of $38.66 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, The Coca-Cola Company’s cash and short-term investments amounted to $3.09 billion against total debt of $41.19 billion. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 12.53% to $2.83 billion, while revenue of $1.91 billion was 32.57% off the previous quarter. Analysts expected KO to announce $0.64 per share in earnings in its latest quarter, but it posted $0.69, representing a 7.80% surprise. EBITDA for the quarter stood at more than $3.4 billion. KO stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 68.03 billion, with total debt at $41.19 billion. Shareholders hold equity totaling $4.32 billion.

Let’s look briefly at The Coca-Cola Company (KO) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 33.56% to suggest the stock is trending Neutral, with historical volatility in this time period at 17.08%.

The stock’s 5-day moving average is $60.30, reflecting a -1.95% or -$1.20 change from its current price. KO is currently trading -5.60% above its 20-day SMA, -3.99% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +1.06% and SMA200 by-3.59%.

Stochastic %K and %D was 11.70% and 9.33% and the average true range (ATR) pointed at 0.98. The RSI (14) points at 37.26%, while the 14-day stochastic is at 19.21% with the period’s ATR at 0.98. The stock’s 9-day MACD Oscillator is pointing at -0.91 and -1.59 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for The Coca-Cola Company (NYSE: KO), Deutsche Bank reiterated its a Hold rating for the company but lifted their price target by $65 to $59. Analysts offering their rating for KO stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate KO as a “sell,”, while 7 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 5 rates the stock as overweight while 15 have offered a “buy” rating.

What is KO’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $61.00 and a high of $77.00, with their median price target at $68.00. Looking at these predictions, the average price target given by analysts is for The Coca-Cola Company (KO) stock is $68.24.


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