Check this if you are still holding on to Coca Cola (NYSE:KO)


USD 58.60  0.66  1.11%   

Coca Cola Tangible Asset Value is quite stable at the moment as compared to the past year. The company's current Tangible Asset Value is estimated at 67.35 Billion. Interest Coverage is expected to rise to 8.01 this year, although the value of Revenue Per Employee will most likely fall to about 425.6 K. There are many examples of prices sliding after a drastic change in one of the basic indicators. In this short article, we will outline a few of Coca Cola's essential fundamentals. I will address the reasons this entity was abused by institutional investors resulted from the current market uncertainty. The company current probability of distress is under 15 percent. Will institutional investors continue to be optimistic, or should we expect a sell-off?
Published over a month ago
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The firm shows a Beta (market volatility) of 0.749, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Coca Cola's beta means in this case. As returns on the market increase, Coca Cola returns are expected to increase less than the market. However, during the bear market, the loss on holding Coca Cola will be expected to be smaller as well. Even though it is essential to pay attention to Coca-Cola historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Coca-Cola exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Coca-Cola has an expected return of -0.0341%. Please be advised to confirm Coca-Cola value at risk, and the relationship between the jensen alpha and skewness to decide if Coca-Cola performance from the past will be repeated at some point in the near future.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Coca Cola income statement, its balance sheet, and the statement of cash flows. Potential Coca Cola investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Coca Cola investors may use each financial statement separately, they are all related. The changes in Coca Cola's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Coca Cola's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Coca Cola fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Coca Cola performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Coca Cola shares is the value that is considered the true value of the share. If the intrinsic value of Coca Cola is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Coca Cola.
Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of Coca Cola earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Coca Cola dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Coca Cola one year expected dividend income is about $1.27 per share.
Investing in dividend-paying stocks, such as Coca-Cola is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Coca Cola must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Coca Cola. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Coca Cola's Liquidity

Coca Cola financial leverage refers to using borrowed capital as a funding source to finance Coca-Cola ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Coca Cola financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Coca Cola's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Coca Cola, but it might be worth checking our own buy vs. sell analysis

Coca Cola exotic insider transaction detected

Legal trades by Coca Cola insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Coca Cola insider trading alert for general transaction of hypothetical shares by James Quincey, Chairman and CEO, on 4th of September 2022. This event was filed by Coca Cola Co with SEC on 2022-07-29. Statement of changes in beneficial ownership - SEC Form 4. James Quincey currently serves as chairman of the board, chief executive officer of Coca-Cola [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Coca Cola

Many companies such as Coca Cola have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Coca Cola is distributed among investors.

Ownership Allocation

Coca-Cola retains a total of 4.32 Billion outstanding shares. The majority of Coca-Cola outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Coca-Cola to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Coca Cola. Please pay attention to any change in the institutional holdings of Coca-Cola as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
Retail Investors28.27
 2019 2020 2021 2022 (projected)
Long Term Debt to Equity1.452.081.661.35
Interest Coverage26.338.437.88.01

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Coca Cola has an asset utilization ratio of 45.91 percent. This suggests that the company is making $0.46 for each dollar of assets. An increasing asset utilization means that Coca-Cola is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
72.2 B
33.1 B
Current Assets23.78 Billion18.11
Assets Non Current72.19 Billion54.97
Goodwill33.08 Billion25.19
Tax Assets2.28 Billion1.74

Possible September correction of Coca Cola?

Downside variance is down to 2.88. It may entail a possible volatility slide. Coca-Cola has relatively low volatility with skewness of -1.68 and kurtosis of 7.77. However, we advise all investors to independently investigate Coca-Cola 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 bullying 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 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.

Our Bottom Line On Coca-Cola

When is the right time to buy or sell Coca-Cola? Buying stocks such as Coca Cola isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some next month oriented institutional investors may not share our view, we believe it may not be a good time to pick up new shares of Coca Cola.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Coca-Cola. Please refer to our Terms of Use for any information regarding our disclosure principles.

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