View | Modify | Create | Collaborate
Below are key drivers of the Coca-Cola Company that present opportunities for upside or downside to the current Trefis price estimate:
The Coca-Cola Company is the world’s world's largest beverage company, with more than 500 nonalcoholic beverage brands in the sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks categories. The company owns and markets four of the world's top five nonalcoholic sparkling soft drink brands: Coca-Cola, Diet Coke, Fanta, and Sprite. Sparkling soft drinks represented 69 percent, 69 percent and 70 percent of the company's worldwide unit case volume for 2017, 2016 and 2015, respectively.
Soft drink consumption is on a decline in developed countries as consumers switch to healthier alternatives such as juices, Ready-to-Drink (RTD) teas, RTD coffee, water mixers, etc. Moreover, soft drinks are prone to higher taxation due to their unhealthy nature. Hence, volume consumption is on a decline in the U.S. and Europe. Developing nations, on the other hand, offer tremendous potential in terms of volume growth. Soft drink consumption (per capita) in countries like China, India, and Brazil is still only a fraction of what it is in the developed world.
Consumers have been shifting to natural and healthier beverages with less sugar and calorie content due to the health risks associated with sugary drinks. The diet counterparts have fared even worse, with the artificial sweetener aspartame being criticized for causing sugar cravings, dehydration, weight gain, and even heart diseases. Consumers have also reported bitter aftertastes of diet drinks which use the natural sweetener stevia, initially considered a bankable solution.
The Coca-Cola Company North America announced the acquisition of premium sparkling mineral water brand Topo Chico in the beginning of October 2017. Topo Chico will continue to be imported from Cerro del Topo Chico in northern Mexico, where it has been bottled exclusively since 1895. The company has a long history with this brand as the first Coca-Cola bottle in Mexico was manufactured at this facility. This deal has been made as a part of the company's Venturing & Emerging Brands (VEB), a business unit whose aim is to identify and nurture brands that have a billion-dollar potential. It functions like a venture capital arm of Coca-Cola that meets with brands that are mostly in the start-up phase, and which are poised for market disruption. Given that nationally, more than $2.3 billion worth of bottled sparkling water is sold every year, according to consumer market researcher Information Resources Inc., it is definitely a significant market for Coca-Cola to ply its trade.
According to the Canadean, consumption of packaged water overtook the intake of carbonated soft drinks (CSDs) in 2015.
While growth in the bottled water category is expected to continue outpacing growth in the CSD category in the next few years, most of this growth will come from emerging markets such as China, Mexico, and India--where clean tap water is not as easily available.
Growing health concerns have prompted customers to reduce their consumption of calorie-filled beverages such as CSDs and juices. This has benefited the bottled water category, as some customers have switched to consuming bottled water instead of other sugary beverages. The U.S. is the fastest growing bottled water market outside of Asia. This trend is expected to continue and, thus, boost the U.S. bottled water market size. Bottled water overtook CSDs as America’s largest beverage category in volume in 2016.
Coca-Cola stock (NYSE: KO) currently trades at $51 and is still down 6% so far this year. It traded around $59 pre-Covid in February 2020 and is more than 13% below that level. However, the stock has gained 37% since its March lows of $37, following the Fed’s stimulus package and measures announced by other economies. ...More
Despite almost a 30% rise since the March 23 lows of this year, at the current price of around $48 per share, we believe Coca-Cola stock (NYSE: KO) has some upside left. KO stock has increased from $37 to $48 off the recent bottom, less than the S&P which increased by 46% from its recent bottom. ...More
Coca-Cola stock (NYSE: KO) has gained more than 20% since late March (vs. about 41% for the S&P 500) to reach to its current level of $45. This is after dropping to a low of $38 in late March, as a rapid increase in the number of Covid-19 cases spooked investors, and led to increased fears of an imminent global economic downturn. ...More
Coca-Cola’s stock (NYSE: KO) price has increased by about 24% in a little over last three years, when the stock price increased from $37 at the end of 2016 to $46 as on 15th June 2020. That’s a positive for Coca-Cola. ...More
Coca-Cola’s stock (NYSE: KO) gained almost 50% in 3 years, with the stock price rising from $37 at the end of 2016 to about $55 at the end of 2019. Though the stock price dropped in 2020 to $43 as of 15th May 2020 due to the COVID-19 pandemic, the stock has still registered a cumulative return of 16% between 2016 and May 2020. ...More
Despite an almost 15% decline in Coca-Cola’s (NYSE: KO) stock since the beginning of this year as the spread of the novel Coronavirus rattled the stock markets and the broader economy, at the current price of $47 per share, we believe Coca-Cola has a significant downside if there are no signs of abatement of the crisis in May 2020. ...More
After almost a 22% decline in Coca-Cola’s (NYSE: KO) stock since the beginning of this year, at the current price of $43 per share, we believe Coca-Cola’s stock is likely to remain around the current level considering the impact of the ongoing coronavirus crisis. ...More
Coca-Cola’s (NYSE: KO) stock is likely to underperform the broader S&P 500 index post coronavirus and oil price war crisis, going by the trends seen during the 2008 slowdown, where it fell 27% from the approximate pre-crisis peak in 2008, and recovered 44% by early 2010. The decline in Coca-Cola’s stock and recovery was lower than that of the S&P 500. ...More
Coca-Cola (NYSE: KO) is slated to release its Q4 and full-year 2019 results on January 30, 2020. Trefis details expectations from the company in an interactive dashboard, parts of which are highlighted below. ...More
PepsiCo (NASDAQ: PEP) and Coca-Cola (NYSE: KO) are the two largest non-alcoholic beverage manufacturers in the world with a range of sparkling soft drinks, juices, energy drinks, etc. ...More
Based on its current market price and future growth prospects, Coca-Cola (NYSE: KO) looks undervalued at present. Trefis has a price estimate of $57 per share for Coca-Cola’s stock, higher than its current market price of $53 (as on November 19, 2019), which reflects an upside of 7.5%. ...More
Coca-Cola (NYSE: KO) has its expenses largely clubbed under its cost of goods sold and SG&A expenses, which together accounted for about 87% of the company’s total expenses in 2018. However, this is a reduction from 92% of total expenses that these two cost heads accounted for in 2015. ...More
Coca-Cola (NYSE: KO) is one of the largest beverage companies with a diversified geographic presence. A] Business Model 1) What Does It Offer? Coca-Cola Revenues (How Does Coca-Cola Make Money) are generated by the sale of a variety of beverages such as sparkling soft drinks... ...More
Coca-Cola Company (NYSE: KO) is set to announce its Q2 2019 financial results on July 23, 2019, followed by a conference call with analysts. The company started the year 2019 on a positive note with a y-o-y revenue growth of 5.2% in Q1 2019 and Trefis expects this trend to continue through the year. ...More
Coca-Cola Company (NYSE: KO) released its Q1 2019 financial results on April 23, 2019, followed by a conference call with analysts. KO beat market expectations for revenue as well as earnings. The company reported revenue of $8.02 billion in Q1 2019, marking a growth of 5.2% over Q1 2018. ...More
Coca-Cola Company (NYSE: KO) is set to announce its financial results for Q1 2019 on April 23, 2019, followed by a conference call with analysts. Total revenues for Coca-Cola have largely trended lower over recent quarters, falling from $8.9 billion in Q2 2018 to $7.1 billion in Q4 2018. ...More
It has been a long time since both, Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP), diversified into segments other than carbonated soft drinks (CSD) by selling juices, water, sports drinks, iced coffee, snacks, and other beverages. ...More
The Coca-Cola Company (NYSE: KO) released its Q4 2018 results on February 14, 2019, followed by a conference call with analysts. The company fell short of analysts’ expectations for revenue, primarily due to loss of revenue from the refranchising of company-owned bottling operations and the impact of currency. The company reported net revenue of $7. ...More
The Coca-Cola Company (NYSE: KO) is set to announce its fourth quarter results on February 14, 2019, followed by a conference call with analysts. The market expects the company to report net revenue of $7.03 billion in Q4 2018, 6.4% lower than in Q4 2017. Adjusted earnings for the quarter are expected to be $0.43 per share compared to $0. ...More
The Coca-Cola Company (NYSE:KO) announced its third quarter results on October 30, with its revenue of $8.25 billion and EPS of $0.58 exceeding consensus expectation. Even though the core performance of the company remained solid in the quarter, the top line took a hit due to the refranchising of bottling operations across geographies. ...More