Coca-Cola (NYSE: KO), established in 1886, has maintained a significant presence in the global stock market for more than a hundred years. Renowned for its primary carbonated soft drink, the company has transformed into a diversified beverage leader, offering a wide range of products such as juices, teas, sports drinks, bottled water, and energy drinks. As one of the most prominent and recognizable brands globally, Coca-Cola has continually drawn investors looking for stability, sustainable growth, and reliable dividend returns. In this analysis will be help you that affect Coca Cola Stock Price Prediction 2025, its past performance, and the considerations investors should take into account when assessing Coca-Cola as a possible investment for their portfolio.
Coca-Cola, one of the world’s best recognizable beverage brands, has a significant market presence in India. Hindustan Coca-Cola Beverages, an Indian subsidiary of the FMCG behemoth, contributes significantly to the company’s income generation. However, Coca-Cola does not trade directly on Indian stock exchanges. Instead, its performance and influence can be assessed using its parent company’s NYSE-listed shares and the impact it has on linked firms in India.
A Brief Overview of Coca-Cola
Coca-Cola functions across multiple beverage categories, which include:
- Sparkling Beverages: This section features Coca-Cola’s renowned soft drinks, including Coca-Cola, Diet Coke, Sprite, and Fanta. Although there has been a decrease in worldwide soda consumption, Coca-Cola has responded by expanding its range to include non-carbonated drinks.
- Non-Sparkling Beverages: This encompasses categories such as juices (Minute Maid, Simply), sports beverages (Powerade), teas (Honest Tea, Gold Peak), and bottled water (Dasani). In recent years, this sector has contributed to growth as consumers increasingly seek healthier options in place of sugary sodas.
- Ready-to-Drink Coffee and Energy Drinks: Coca-Cola has ventured into the coffee and energy drink sectors through its acquisitions of brands such as Costa Coffee, Monster Energy, and Coca-Cola Coffee. These markets have emerged as significant avenues for the company’s growth.
- Other Beverage Brands: Coca-Cola’s extensive portfolio encompasses various smaller beverage brands, many of which are tailored to specific regions or designed to meet distinct consumer tastes and preferences.
Coca-Cola continues to be a dominant force in the beverage sector, boasting an extensive portfolio and significant brand recognition, which contribute to its billions in revenue and strong international presence.
Valuation Measures
| KO | Current | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 |
|---|---|---|---|---|---|---|
| Market Cap | 269.84B | 309.72B | 274.27B | 263.56B | 254.78B | 242.06B |
| Enterprise Value | 297.94B | 334.54B | 299.90B | 291.96B | 279.51B | 267.99B |
| Trailing P/E | 26.49 | 29.21 | 25.56 | 24.77 | 23.86 | 23.23 |
| Forward P/E | 21.55 | 23.64 | 22.57 | 21.79 | 21.05 | 19.76 |
| PEG Ratio (5yr expected) | 2.69 | 2.95 | 2.89 | 3.08 | 2.78 | 2.58 |
| Price/Sales | 5.95 | 6.69 | 5.99 | 5.80 | 5.68 | 5.51 |
| Price/Book | 10.37 | 11.98 | 10.38 | 10.16 | 9.64 | 9.31 |
| Enterprise Value/Revenue | 6.54 | 7.20 | 6.51 | 6.39 | 6.21 | 6.07 |
| Enterprise Value/EBITDA | 19.59 | 21.46 | 19.46 | 18.72 | 17.97 | 17.51 |
Financial Highlights
Fiscal Year
| Fiscal Year Ends | 12/31/2023 |
| Most Recent Quarter (mrq) | 9/27/2024 |
Profitability
| Profit Margin | 22.45% |
| Operating Margin (ttm) | 30.24% |
Management Effectiveness
| Return on Assets (ttm) | 8.44% |
| Return on Equity (ttm) | 37.23% |
Income Statement
| Revenue (ttm) | 46.37B |
| Revenue Per Share (ttm) | 10.75 |
| Quarterly Revenue Growth (yoy) | -0.80% |
| Gross Profit (ttm) | — |
| EBITDA | 14.83B |
| Net Income Avi to Common (ttm) | 10.41B |
| Diluted EPS (ttm) | 2.41 |
| Quarterly Earnings Growth (yoy) | -7.70% |
Balance Sheet
| Total Cash (mrq) | 18.16B |
| Total Cash Per Share (mrq) | 4.22 |
| Total Debt (mrq) | 47.12B |
| Total Debt/Equity (mrq) | 167.36% |
| Current Ratio (mrq) | 1.06 |
| Book Value Per Share (mrq) | 6.15 |
Cash Flow Statement
| Operating Cash Flow (ttm) | 5.52B |
| Levered Free Cash Flow (ttm) | 14.02B |
Abbreviation Guide
- mrq = Most Recent Quarter
- ttm = Trailing Twelve Months
- yoy = Year Over Year
- lfy = Last Fiscal Year
- fye = Fiscal Year Ending
“The financial figures mentioned in this analysis are derived from Yahoo Finance for accuracy and reliability.”
Trading Information
Stock Price History
| Beta (5Y Monthly) | 0.62 |
| 52 Week Range 3 | 8.94% |
| S&P 500 52-Week Change 3 | 28.23% |
| 52 Week High 3 | 73.53 |
| 52 Week Low 3 | 57.47 |
| 50-Day Moving Average 3 | 65.67 |
| 200-Day Moving Average 3 | 64.87 |
Share Statistics
| Avg Vol (3 month) 3 | 15.8M |
| Avg Vol (10 day) 3 | 20.44M |
| Shares Outstanding 5 | 4.31B |
| Implied Shares Outstanding 6 | 4.31B |
| Float 8 | 3.87B |
| % Held by Insiders 1 | 9.95% |
| % Held by Institutions 1 | 64.71% |
| Shares Short (11/29/2024) 4 | 28.44M |
| Short Ratio (11/29/2024) 4 | 1.74 |
| Short % of Float (11/29/2024) 4 | 0.67% |
| Short % of Shares Outstanding (11/29/2024) 4 | 0.66% |
| Shares Short (prior month 10/31/2024) 4 | 30.82M |
Dividends & Splits
| Forward Annual Dividend Rate 4 | 1.94 |
| Forward Annual Dividend Yield 4 | 3.04% |
| Trailing Annual Dividend Rate 3 | 1.91 |
| Trailing Annual Dividend Yield 3 | 3.06% |
| 5 Year Average Dividend Yield 4 | 3.02 |
| Payout Ratio 4 | 79.46% |
| Dividend Date 3 | 12/16/2024 |
| Ex-Dividend Date 4 | 11/29/2024 |
| Last Split Factor 2 | 2:1 |
| Last Split Date 3 | 8/13/2012 |
Footnotes
- 1 Data provided by Refinitiv.
- 2 Data provided by EDGAR Online.
- 3 Data derived from multiple sources or calculated by Yahoo Finance.
- 4 Data provided by Morningstar, Inc.
- 5 Shares outstanding is taken from the most recently filed quarterly or annual report and Market Cap is calculated using shares outstanding.
- 6 Implied Shares Outstanding of common equity, assuming the conversion of all convertible subsidiary equity into common.
- 7 EBITDA is calculated by S&P Global Market Intelligence using methodology that may differ from that used by a company in its reporting.
- 8 A company’s float is a measure of the number of shares available for trading by the public. It’s calculated by taking the number of issued and outstanding shares minus any restricted stock, which may not be publicly traded.
“The financial figures mentioned in this analysis are derived from Yahoo Finance for accuracy and reliability.”
Coca Cola Stock Price Prediction 2025
- Current Price: Coca-Cola’s stock price on the NYSE ranges between $58 and $68 a share.
- Market Cap: Its value exceeds $251 billion, making it one of the world’s largest beverage corporations.
- Dividend Yield: Coca-Cola, with its continuous dividend history, is regarded as a great defensive asset for long-term investors.
| Year | Bullish Scenario | Intermediate Situation | Bearish Scenario |
|---|---|---|---|
| 2025 | $70 – ₹ $78 | $57 – ₹ $69 | $60 – ₹ $65 |
| 2030 | $142 – ₹ $155 | $120 – ₹ $145 | $110 – ₹ $125 |
For further details, click here. The Coca-Cola Company
Key Factors That Influence Coca-Cola Share Price
Coca-Cola’s stock price is affected by various elements, including consumer preferences, global economic conditions, business strategies, and financial performance. The key factors that influence the share price are outlined below.
Revenue and Earnings Growth
Coca-Cola’s share price, like that of any publicly traded company, is significantly affected by its quarterly earnings and revenue results. Investors closely monitor essential metrics, including:
- Revenue Growth:Coca-Cola’s capacity to achieve steady revenue growth throughout its beverage range is essential. This encompasses robust performance in established markets such as the United States, alongside emerging markets like China and India. Additionally, the company’s revenue is influenced by the quantity of products sold and its pricing strategies.
- Earnings Per Share (EPS):Investors closely monitor a company’s capacity to produce robust earnings. An increasing earnings per share, especially when surpassing analyst forecasts, can result in favorable stock price fluctuations. Coca-Cola’s emphasis on cost control, operational efficiency, and effective execution frequently results in profitability, even amid challenging economic conditions.
Brand Portfolio and Innovation
Coca-Cola’s capacity for innovation and its responsiveness to evolving consumer preferences are crucial factors contributing to its sustained success over time.
- Health-Conscious Trends: Coca-Cola has adapted to the increasing health awareness of consumers by transitioning its emphasis from sugary soft drinks to more nutritious options, such as bottled water, low-sugar beverages, and plant-based products. The introduction of innovative healthier alternatives, exemplified by Coca-Cola Plus Coffee, has contributed to the expansion of its non-carbonated beverage segment.
- Sustainability Initiatives: Coca-Cola’s dedication to sustainability, exemplified by its use of recyclable packaging and enhanced water usage efficiency, can favorably influence investor sentiment, given the growing concern among consumers and investors regarding environmental responsibility.
- New Product Launches and Acquisitions: Coca-Cola has focused on broadening its portfolio via acquisitions and the introduction of new products. The acquisition of Costa Coffee in 2019 represented a significant strategic initiative aimed at entering the expanding coffee market. Likewise, the purchase of Monster Energy has enhanced its standing within the energy drink sector.
Global Economic Conditions
Coca-Cola conducts its operations in almost every nation globally, rendering its business susceptible to international economic fluctuations. Various macroeconomic elements influence the share price of Coca-Cola.
- Currency Fluctuations: Coca-Cola, as a multinational corporation, faces risks associated with exchange rate fluctuations, especially concerning the U.S. dollar. Given that a substantial share of its revenue is derived from international markets, a robust U.S. dollar may adversely affect earnings when these revenues are converted back into dollars.
- Global Economic Growth: The performance of Coca-Cola is closely linked to the state of the global economy. In periods of robust economic growth, consumer expenditure tends to increase, potentially resulting in higher beverage sales. Conversely, during economic downturns or recessions, consumers often reduce discretionary spending, which can adversely affect sales.
- Inflation and Commodity Prices: Increasing expenses for components like sugar, aluminum used in cans, and various raw materials can elevate production costs for Coca-Cola. The company’s capacity to transfer these expenses to consumers via higher prices, while still preserving demand, is crucial for sustaining profit margins.
Marketing and Advertising Strategies
Coca-Cola is widely recognized for its impactful and legendary marketing initiatives. The company’s extensive brand visibility and advertising effectiveness play crucial roles in influencing its stock value. Notable marketing efforts, including the festive Coca-Cola truck advertisements and sponsorships of international events like the FIFA World Cup, contribute to sustaining the brand’s prominence in consumers’ awareness and boosting sales.
Coca-Cola’s strategic emphasis on digital marketing and social media interaction, alongside conventional advertising, has significantly contributed to its ability to engage with younger consumers.
Dividends and Share Buybacks
Coca-Cola is recognized as a Dividend Aristocrat, having increased its dividend payments for 25 consecutive years or more. This reliable dividend track record positions Coca-Cola as an appealing choice for investors seeking income. The company’s capacity to produce robust cash flow and provide value to shareholders via dividends and share repurchase initiatives is a significant aspect of its attractiveness.
The consistent and dependable dividend yield of the company frequently plays a crucial role in influencing its stock price, particularly during times of market fluctuations when investors prioritize stability and income.
Competition
Coca-Cola encounters competition from numerous beverage firms, with PepsiCo being its primary competitor, alongside Nestlé, Dr Pepper Snapple Group, and various other local and international brands. Fluctuations in market share, the introduction of competing products, and alterations in pricing strategies can considerably influence Coca-Cola’s stock value.
PepsiCo’s significant foothold in the snack food and beverage sectors consistently challenges Coca-Cola’s market leadership. The competition within the healthier beverage segment has escalated in recent years, with formidable contenders such as Nestlé Waters and Unilever also making their mark.
Regulatory Issues and Health Concerns
Coca-Cola, a significant entity in the beverage sector, faces various regulations, such as sugar taxes in specific nations, labeling requirements, and environmental laws concerning packaging waste. Modifications in these regulatory frameworks can influence Coca-Cola’s profitability and affect its stock valuation.
Health issues associated with sugary drink consumption, especially in developed markets such as the U.S., can affect investor perceptions. Nevertheless, Coca-Cola’s expansion into non-sugary beverages and healthier options serves to alleviate this concern.
Historical Performance of Coca-Cola Share Price
Coca-Cola has demonstrated a robust performance in the stock market, characterized by consistent long-term growth. Traditionally, the stock has attracted value and income-oriented investors, owing to its reliable dividend distributions and strong brand allegiance.
Coca-Cola has encountered various challenges, such as a decrease in soda consumption; however, it has effectively addressed these issues by broadening its product range, exploring new markets, and emphasizing healthier beverage options. The company’s capacity to adjust to evolving consumer preferences has enabled it to sustain a competitive advantage in the dynamic beverage industry.
Coca-Cola’s stock price has experienced variations due to multiple influences; however, it has demonstrated stability over the long term. During times of economic instability, the company’s robust financial position and consistent dividend payments frequently position it as a preferred choice for risk-averse investors.
Conclusion : Coca Cola Stock Price Prediction 2025 is good for investors?
Coca-Cola continues to be a dominant and robust entity within the global beverage sector. Its varied product range, prominent brand recognition, and unwavering commitment to innovation contribute to its enduring success, ensuring that its share price remains indicative of its position as a leading choice for long-term investors.
The company encounters obstacles including changing consumer preferences, international competition, and regulatory challenges; however, its capacity to adapt and its robust track record of providing value to shareholders via dividends render it an appealing option for investors seeking both income and growth.
Coca-Cola’s stock presents a strong investment opportunity for individuals seeking stability, steady returns, and involvement in the beverage industry. It exemplifies a dependable, established company that adapts and thrives in an ever-changing market.
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