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The Coca-Cola Company logo

The Coca-Cola Company

KO
63
Beverages - Non-Alcoholic · Consumer Defensive
Price
$81.56
-3.36 (-3.96%)
Market Cap
$350.91B
Winston Score
63
Winston is curious
A decent business — some strong pillars, some weaker.

The Coca-Cola Company makes and sells soft drinks, juices, and other non-alcoholic beverages that people buy at stores, restaurants, and vending machines around the world. Its main products include Coca-Cola, Sprite, Fanta, and Dasani water, along with hundreds of other drink brands that serve consumers in nearly every country. Coca-Cola is the world's largest beverage company and owns some of the most recognized brand names on the planet.

The company makes money by selling concentrated syrup to bottling partners who then mix, package, and distribute the final products to retailers and restaurants. Coca-Cola operates in over 200 countries and territories, generating annual revenues of around $43 billion through this asset-light business model that relies heavily on its bottling network. The company's main competitive advantage is its massive global distribution system and powerful brand recognition, though it faces ongoing pressure from changing consumer preferences toward healthier drinks and reduced sugar consumption.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+18.2% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

0.7%ownership

Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$10.6B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

The Coca-Cola Company is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.6% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 4.34B (2021) → 4.31B (2025)

Score breakdown

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Quality

Gross Margin
63.0%
Premium pricing power — 63.0% gross margin
Operating Margin
35.0%
Excellent — 35.0% operating margin
ROCE
5.6%
Weak — 5.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+5.1%
Slow sales growth (5.1% YoY)
EPS YoY
+27.6%
Earnings growing fast (27.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
107%
Turns 107% of profit into real cash
FCF Margin
25.5%
Converts sales into free cash efficiently (25.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
1.30
Elevated debt (1.30)
Interest Cover
8.81x
Comfortably covers interest (8.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
25.6x
Growth-priced — P/E 25.6

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+3.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (25.6 → 22.2)

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Dividends

Dividend Yield
2.52%
Moderate income — 2.52% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+4.5%
Dividend growing modestly (4.5% YoY)

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