COCA COLA CO (KO) Stock Analysis

Analysis from 10-Q filed 2025-10-23. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 15.9%. FCF margin 28.5%. D/E 1.2x. Source: 10-Q filed 2025-10-23.

Metric	Value	Context
ROIC	15.9%	Solid returns
FCF Margin	28.5%	Strong cash generation
Debt/Equity	1.2x	Moderate leverage

ROIC 15.9% — Top 25% of sector peers. FCF margin 28.5% — Top 5%.

Explore COCA COLA CO: Earnings History | Filings

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 15.9% ROIC, Top 25% in Consumer Staples

ROIC TTM 15.9%, sector median 5.7%, Top 25%. DuPont: NOPAT margin 24.8% × asset turnover 0.5x. Gross margin 61.9%. Operating margin 29.6%. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
Return on Invested Capital (ROIC)	15.9%	Good	Above sector median of 5.7%
Return on Equity (ROE)	44.2%	Excellent	Efficient use of shareholder equity
Gross Margin	61.9%	Excellent	Strong pricing power
Operating Margin	29.6%	Excellent	Efficient operations

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Cash Flow: COCA COLA CO generates $14.3B FCF at 28.5% margin, positive NaN/8 quarters

FCF TTM $14.3B. FCF margin 28.5%, 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	28.5%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$14.3B	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 $43.5B, cash & investments $13.5B. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
Debt to Equity	1.2x	Adequate	Moderate leverage
Net Cash Position	$-30.0B	Warning	Net debt position

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Valuation: COCA COLA CO trades at 25.3x earnings

P/E 25.3x. EV/Sales 6.9x. FCF yield 3.9%. Dividend yield 3.1%. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
P/E Ratio	25.3x	Adequate	Premium valuation
EV/Sales	6.9x	Adequate	Growth premium priced in
FCF Yield	3.9%	Adequate	Lower cash yield
Dividend Yield	3.1%	Adequate	Meaningful income

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Capital Allocation: COCA COLA CO returns 3.3% shareholder yield

Total shareholder yield 3.3% (div 3.1% + buyback 0.3%). Capital returned $12.0B TTM. Source: 10-Q filed 2025-10-23.

Metric	KO	Rating	Context
Total Shareholder Yield	3.3%	Good	Dividend + buyback yield combined
Buyback Yield	0.3%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$12.0B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	15.9%	Top 25%	2.8x above
Free Cash Flow Margin	28.5%	Top 5%	6.8x above
Gross Margin	61.9%	Top 5%	2.1x above
Operating Margin	29.6%	Top 5%	6.1x above
Return on Equity (ROE)	44.2%	Top 5%	6.1x above
P/E Ratio	25.3x	N/A	-

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Financial Scorecard

Metric	KO	Rating	Sector Context
Return on Invested Capital (ROIC)	15.9%	Good	Top 25% of sector (median: 5.7%)
Free Cash Flow Margin	28.5%	Excellent	Top 5% of sector (median: 4.2%)
Gross Margin	61.9%	Excellent	Top 5% of sector (median: 28.8%)
Debt to Equity Ratio	120.3%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	25.3x	Adequate	Growth premium
Free Cash Flow Yield	3.9%	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 15.9%. Sector median 5.7%. 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 28.5%, generating $14.3 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 25.3x, which is above the sector median of N/A. EV/Sales 6.9x. FCF yield 3.9%. 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 3.1%. Total shareholder yield (dividend + buybacks) 3.3%. 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 $43.5 billion. Net debt $30.0 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 6.5% year-over-year. EPS +17.6% YoY. Source: 10-Q filed 2025-10-23.

Q: Is COCA COLA CO buying back stock?

COCA COLA CO (KO) repurchased $937.0 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 15.9%, sector median 5.7% (Top 25%). FCF margin 28.5%, sector median 4.2% (Top 5%). Gross margin 61.9%, 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 Q3 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.