Coca Cola Stock Buy Hold or Sell Recommendation

KO
 Stock
  

USD 63.54  0.10  0.16%   

Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Coca-Cola Co is 'Strong Buy'. Macroaxis provides Coca Cola buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding KO positions. The advice algorithm takes into account all of Coca Cola's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Coca Cola's buy-and-hold perspective. Please see Coca Cola Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Coca Cola and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Coca-Cola Co.

Execute Coca Cola Buy or Sell Advice

The Coca Cola recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Coca-Cola Co. Macroaxis does not own or have any residual interests in Coca-Cola Co or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Coca Cola's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Coca ColaBuy Coca Cola
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Coca-Cola Co has a Risk Adjusted Performance of 0.1007, Jensen Alpha of 0.0313, Total Risk Alpha of 0.0177, Sortino Ratio of 0.0056 and Treynor Ratio of 0.1178
Macroaxis provides unbiased investment recommendation on Coca-Cola that should be used to complement current analysts and expert consensus on Coca-Cola Co. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Coca Cola is not overpriced, please confirm all Coca-Cola fundamentals, including its shares owned by institutions, cash per share, number of employees, as well as the relationship between the revenue and cash flow from operations . Given that Coca-Cola has a price to book of 12.20 X, we suggest you to validate Coca-Cola Co market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Coca Cola Trading Alerts and Improvement Suggestions

Coca Cola Returns Distribution Density

The distribution of Coca Cola's historical returns is an attempt to chart the uncertainty of Coca Cola's future price movements. The chart of the probability distribution of Coca Cola stock daily returns describes the distribution of returns around its average expected value. We use Coca-Cola Co price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Coca Cola returns is essential to provide solid investment advice for Coca Cola.
Mean Return0.09Value At Risk-1.6
Potential Upside2.40Standard Deviation1.27
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Coca Cola historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Coca Cola Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(1.64 B)(1.3 B)(1.08 B)(988 M)(1.26 B)(1.36 B)
Depreciation Amortization and Accretion1.26 B1.09 B1.36 B1.54 B1.45 B1.47 B
Net Cash Flow or Change in Cash and Cash Equivalents(2.48 B)2.94 B(2.58 B)373 M2.92 B3.15 B
Net Cash Flow Business Acquisitions and Disposals12 M99 M(5.11 B)(863 M)(2.59 B)(2.65 B)
Issuance Purchase of Equity Shares(2.09 B)(436 M)(91 M)529 M591 M637.66 M
Issuance Repayment of Debt Securities1.05 B(3 B)(1.84 B)(1.86 B)228 M234 M
Payment of Dividends and Other Cash Distributions(6.32 B)(6.64 B)(6.84 B)(7.05 B)(7.25 B)(7.82 B)
Net Cash Flow from Financing(7.41 B)(10.55 B)(9 B)(8.07 B)(6.79 B)(7.32 B)
Net Cash Flow from Investing(2.38 B)6.35 B(3.98 B)(1.48 B)(2.77 B)(2.98 B)
Net Cash Flow Investment Acquisitions and Disposals(602 M)7.19 B2.27 B252 M1.03 B1.11 B
Net Cash Flow from Operations7 B7.32 B10.47 B9.84 B12.62 B10.76 B
Effect of Exchange Rate Changes on Cash241 M(262 M)(72 M)76 M(159 M)(171.55 M)
Share Based Compensation219 M225 M201 M126 M337 M278.84 M

Coca Cola Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Coca Cola or Beverages sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Coca Cola's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Coca Cola stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.031345
β
Beta against NYSE Composite0.65
σ
Overall volatility
1.27
Ir
Information ratio 0.0056

Coca Cola Volatility Alert

Coca-Cola Co has relatively low volatility with skewness of 0.14 and kurtosis of 0.55. However, we advise all investors to independently investigate Coca-Cola Co to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Coca Cola's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Coca Cola's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Coca Cola Implied Volatility

Coca Cola's implied volatility exposes the market's sentiment of Coca-Cola Co stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Coca Cola's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Coca Cola stock will not fluctuate a lot when Coca Cola's options are near their expiration.

Coca Cola Fundamentals Vs Peers

Comparing Coca Cola's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Coca Cola's direct or indirect competition across all of the common fundamentals between Coca Cola and the related equities. This way, we can detect undervalued stocks with similar characteristics as Coca Cola or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Coca Cola's fundamental indicators could also be used in its relative valuation, which is a method of valuing Coca Cola by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Coca Cola to competition
FundamentalsCoca ColaPeer Average
Return On Equity0.41 %(0.31) %
Return On Asset0.08 %(0.14) %
Profit Margin0.23 %(1.27) %
Operating Margin0.29 %(5.51) %
Current Valuation304.65 B16.62 B
Shares Outstanding4.32 B571.82 M
Shares Owned by Insiders0.67 %10.09 %
Shares Owned by Institutions71.43 %39.21 %
Number of Shares Shorted31.72 M4.71 M
Price to Earning27.50 X28.72 X
Price to Book12.20 X9.51 X
Price to Sales6.49 X11.42 X
Revenue38.66 B9.43 B
Gross Profit23.3 B27.38 B
EBITDA15.44 B3.9 B
Net Income9.77 B570.98 M
Cash and Equivalents9.68 B2.7 B
Cash per Share3.06 X5.01 X
Total Debt38.12 B5.32 B
Debt to Equity1.69 %48.70 %
Current Ratio1.13 X2.16 X
Book Value Per Share5.27 X1.93 K
Cash Flow from Operations12.62 B971.22 M
Short Ratio2.24 X4.00 X
Earnings Per Share2.28 X3.12 X
Price to Earnings To Growth3.62 X4.89 X
Target Price66.67
Number of Employees79 K18.84 K
Beta0.59-0.15
Market Capitalization274.78 B19.03 B
Total Asset94.35 B29.47 B
Retained Earnings68.74 B9.33 B
Working Capital6.47 B1.48 B
   Coca Cola exotic insider transaction detected [view details]

About Coca Cola Buy or Sell Advice

When is the right time to buy or sell Coca-Cola Co? Buying financial instruments such as Coca Cola Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables3.97 B3.14 B3.51 B4.21 B
Inventories3.38 B3.27 B3.41 B3.08 B

Use Investing Ideas to Build Portfolios

In addition to having Coca Cola in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Sport Products Thematic Idea Now

Sport Products
Sport Products Theme
Companies manufacturing sporting goods and accessories. The Sport Products theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sport Products Theme or any other thematic opportunities.
View All  Next Launch
Please see Coca Cola Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Complementary Tools for analysis

When running Coca-Cola price analysis, check to measure Coca Cola's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Coca Cola is operating at the current time. Most of Coca Cola's value examination focuses on studying past and present price action to predict the probability of Coca Cola's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Coca Cola's price. Additionally, you may evaluate how the addition of Coca Cola to your portfolios can decrease your overall portfolio volatility.
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Is Coca Cola's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coca Cola. If investors know Coca Cola will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coca Cola listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.14
Market Capitalization
274.8 B
Quarterly Revenue Growth YOY
0.102
Return On Assets
0.0836
Return On Equity
0.4103
The market value of Coca-Cola is measured differently than its book value, which is the value of Coca Cola that is recorded on the company's balance sheet. Investors also form their own opinion of Coca Cola's value that differs from its market value or its book value, called intrinsic value, which is Coca Cola's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coca Cola's market value can be influenced by many factors that don't directly affect Coca Cola's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Coca Cola's value and its price as these two are different measures arrived at by different means. Investors typically determine Coca Cola value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coca Cola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.