COCA COLA CO (KO) Stock Analysis

Analysis from 10-Q filed 2025-10-23. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 15.8%. FCF margin 25.5%. D/E 1.2x. Source: 10-Q filed 2025-10-23.

Metric	Value	Context
ROIC	15.8%	Solid returns
FCF Margin	25.5%	Strong cash generation
Debt/Equity	1.2x	Moderate leverage

ROIC 15.8% — Top 25% of sector peers. FCF margin 25.5% — Top 5%.

Explore COCA COLA CO: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for KO: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: COCA COLA CO earns 15.8% ROIC, Top 25% in Consumer Staples

ROIC TTM 15.8%, sector median 5.8%, Top 25%. DuPont: NOPAT margin 24.4% × asset turnover 0.5x. Gross margin 61.7%. Operating margin 29.3%. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
Return on Invested Capital (ROIC)	15.8%	Good	Above sector median of 5.8%
Return on Equity (ROE)	45.0%	Excellent	Efficient use of shareholder equity
Gross Margin	61.7%	Excellent	Strong pricing power
Operating Margin	29.3%	Excellent	Efficient operations

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Cash Flow: COCA COLA CO generates $12.6B FCF at 25.5% margin, positive NaN/8 quarters

FCF TTM $12.6B. FCF margin 25.5%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
Free Cash Flow Margin	25.5%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$12.6B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: COCA COLA CO at 1.2x leverage

Debt/Equity 1.2x. Total debt $39.3B, cash & investments $11.1B. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
Debt to Equity	1.2x	Adequate	Moderate leverage
Net Cash Position	$-28.2B	Warning	Net debt position

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Valuation: COCA COLA CO trades at 24.1x earnings

P/E 24.1x. EV/Sales 7.4x. FCF yield 3.8%. Dividend yield 3.3%. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
P/E Ratio	24.1x	Adequate	Premium valuation
EV/Sales	7.4x	Adequate	Growth premium priced in
FCF Yield	3.8%	Adequate	Lower cash yield
Dividend Yield	3.3%	Adequate	Meaningful income

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Capital Allocation: COCA COLA CO returns 3.6% shareholder yield

Total shareholder yield 3.6% (div 3.3% + buyback 0.3%). Capital returned $11.8B TTM. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
Total Shareholder Yield	3.6%	Good	Dividend + buyback yield combined
Buyback Yield	0.3%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$11.8B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	15.8%	Top 25%	2.7x above
Free Cash Flow Margin	25.5%	Top 5%	4.9x above
Gross Margin	61.7%	Top 5%	2.1x above
Operating Margin	29.3%	Top 5%	5.5x above
Return on Equity (ROE)	45.0%	Top 5%	6.2x above
P/E Ratio	24.1x	N/A	-

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Financial Scorecard

Metric	KO	Rating	Sector Context
Return on Invested Capital (ROIC)	15.8%	Good	Top 25% of sector (median: 5.8%)
Free Cash Flow Margin	25.5%	Excellent	Top 5% of sector (median: 5.2%)
Gross Margin	61.7%	Excellent	Top 5% of sector (median: 28.8%)
Debt to Equity Ratio	116.9%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	24.1x	Adequate	Fair value
Free Cash Flow Yield	3.8%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is COCA COLA CO's Return on Invested Capital (ROIC)?

COCA COLA CO (KO) has a trailing twelve-month Return on Invested Capital (ROIC) of 15.8%. Sector median 5.8%. Source: 10-Q filed 2025-10-23.

Q: What is COCA COLA CO's Free Cash Flow Margin?

COCA COLA CO (KO) has a free cash flow margin of 25.5%, generating $12.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-23.

Q: What is COCA COLA CO's P/E ratio and how does it compare to peers?

COCA COLA CO (KO) trades at a P/E ratio of 24.1x, which is above the sector median of N/A. EV/Sales 7.4x. FCF yield 3.8%. Source: 10-Q filed 2025-10-23.

Q: Does COCA COLA CO pay a dividend?

COCA COLA CO (KO) currently pays a dividend yield of 3.3%. Total shareholder yield (dividend + buybacks) 3.6%. Source: 10-Q filed 2025-10-23.

Q: How much debt does COCA COLA CO have?

COCA COLA CO (KO) has a debt-to-equity ratio of 1.2x with total debt of $39.3 billion. Net debt $28.2 billion. Source: 10-Q filed 2025-10-23.

Q: What is COCA COLA CO's revenue and earnings growth?

COCA COLA CO (KO) grew revenue by 5.1% year-over-year. EPS +27.2% YoY. Source: 10-Q filed 2025-10-23.

Q: Is COCA COLA CO buying back stock?

COCA COLA CO (KO) repurchased $853.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.3%. Source: 10-Q filed 2025-10-23.

Q: How does COCA COLA CO compare to competitors in Consumer Staples?

Compared to other companies in Consumer Staples, COCA COLA CO (KO) shows: ROIC 15.8%, sector median 5.8% (Top 25%). FCF margin 25.5%, sector median 5.2% (Top 5%). Gross margin 61.7%, 33.0pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Staples companies with available SEC filings.

Q: What warning signs should I watch for with COCA COLA CO?

No quantitative warning flags fired for COCA COLA CO (KO) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-23.

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Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.