Coke Posts Refreshing Results

The Coca-Cola Company (KO) is the world's largest beverage company and is the leading producer and marketer of soft drinks. Along with Coca-Cola, recognized as the world's best-known brand, The Coca-Cola Company markets four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite. Through the world's largest distribution system, consumers in nearly 200 countries enjoy The Coca-Cola Company's products at a rate of more than 1 billion servings each day.

Beverage giant Coca-Cola posted a beat today, as their reported earnings for Q4 2015 topped consensus estimates by $0.01/share--analysts expected $0.37/share and the company managed to hit $0.38. That represents an overall profit of $1.24 billion which was significantly higher than last year's $770 million.

Unlike many companies who play deep in emerging markets, Coke was not held back by economic woes in BRIC nations and elsewhere. The stronger US market bolstered their bottom line, and the move to smaller servings for higher prices helped make up the difference with overseas markets. Of course, Coca-Cola is no longer completely dependent on soda, their juices, waters, and teas have helped bolster the bottom line as consumer tastes switch to "healthier" alternatives than sugar-laden mainstays like classic Coke.

While discussing the results, Kathy Waller--company CFO-- had this to say:

The main takeaway is that we achieved our key objectives of improving our top-line revenue and delivering profits in line with our expectations for the year. When we started 2015, we said it would be a transition year as we began to implement plans to reinvigorate our growth and increase profitability. Even in a year with very challenging macroeconomic factors working against us, we delivered our plan and accelerated our business. These results are thanks to the focus and determination of people all across our system. We continue to be in a period of significant change as we refocus on our core business of building brands and leading strong bottlers around the world.

We continue our HOLD recommendation on COCA COLA CO for 2016-02-08. Based on the information we have gathered and our resulting research, we feel that COCA COLA CO has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

42.72 0.16%

3-Month

43.25 1.40%

6-Month

44.56 4.48%

1-Year

43.46 1.89%

2-Year

51.60 20.98%

3-Year

54.83 28.57%

 

Valuation & Rankings

Valuation

5.60% overvalued

Valuation Rank

15

1-M Forecast Return

0.16%

1-M Forecast Return Rank

64

12-M Return

3.44%

Momentum Rank

81

Sharpe Ratio

0.47

Sharpe Ratio Rank

86

5-Y Avg Annual Return

6.23%

5-Y Avg Annual Rtn Rank

77

Volatility

13.30%

Volatility Rank

86

Expected EPS Growth

4.83%

EPS Growth Rank

31

Market Cap (billions)

186.81

Size Rank

100

Trailing P/E Ratio

21.50

Trailing P/E Rank

49

Forward P/E Ratio

20.51

Forward P/E Ratio Rank

21

PEG Ratio

4.45

PEG Ratio Rank

7

Price/Sales

4.14

Price/Sales Rank

19

Market/Book

101.09

Market/Book Rank

1

Beta

0.50

Beta Rank

67

Alpha

0.06

Alpha Rank

76

ValuEngine Market Overview

Summary of VE Stock Universe

Stocks Undervalued

79.86%

Stocks Overvalued

20.14%

Stocks Undervalued by 20%

45.23%

Stocks Overvalued by 20%

6.13%

ValuEngine Sector Overview

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Utilities

-1.35%

-2.63%

-4.59%

2.02% undervalued

-7.25%

20.78

Consumer Staples

-0.97%

-2.89%

-5.31%

2.82% undervalued

-5.97%

22.28

Multi-Sector Conglomerates

-1.29%

-2.77%

-9.94%

11.09% undervalued

-17.70%

15.13

Aerospace

-1.43%

-3.88%

-11.91%

12.71% undervalued

-18.88%

19.15

Industrial Products

-1.72%

-2.62%

-9.28%

13.00% undervalued

-18.87%

16.39

Business Services

-1.57%

-5.66%

-10.57%

13.10% undervalued

-15.33%

21.22

Finance

-1.48%

-3.58%

-9.89%

14.83% undervalued

-11.30%

14.76

Basic Materials

-1.02%

2.17%

-5.77%

15.35% undervalued

-25.01%

22.65

Computer and Technology

-2.07%

-4.82%

-8.64%

15.51% undervalued

-14.07%

25.30

Transportation

-1.20%

-1.95%

-9.89%

19.24% undervalued

-32.67%

11.46

Consumer Discretionary

-1.37%

-3.41%

-9.18%

19.64% undervalued

-14.88%

22.83

Construction

-2.45%

-4.60%

-11.93%

22.09% undervalued

-18.27%

17.67

Oils-Energy

-4.43%

-6.73%

-14.01%

22.16% undervalued

-44.81%

19.82

Retail-Wholesale

-1.57%

-3.92%

-10.18%

22.22% undervalued

-19.02%

21.43

Medical

-3.39%

-6.27%

-17.08%

24.61% undervalued

-21.83%

25.11

Auto-Tires-Trucks

-1.75%

-4.63%

-12.51%

27.06% undervalued

-26.53%

10.46

Disclosure: None.

Disclaimer: ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, ...

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