What is the AI rating for KO?

COCA COLA CO (KO) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of KO?

Exceptional profitability with 27.3% net margin and 61.6% gross margin, indicating strong pricing power and operational efficiency. Outstanding ROE of 40.7% and ROA of 12.5% demonstrate superior capital returns and asset productivity. Strong free cash flow generation of 5.3B with 11.0% FCF margin provides ample capacity for dividends and debt service

What are the risks of investing in KO?

Leverage of 1.31x D/E is elevated, with long-term debt of 42.1B exceeding stockholders' equity; rising interest rates could pressure earnings. Revenue growth of only 1.9% YoY indicates limited top-line expansion, reliant on margin management and share buybacks for earnings growth. High insider activity (41 Form 4 filings in 90 days) warrants monitoring to ensure alignment with shareholder interests

KO Stock Analysis - COCA COLA CO AI Rating & Fundamentals

Name: COCA COLA CO (KO) Stock
Brand: COCA COLA CO
Rating: 4 (1 reviews)

Investment Thesis

Coca-Cola demonstrates exceptional fundamental strength with dominant profitability metrics (61.6% gross margin, 27.3% net margin) and strong cash generation (5.3B FCF). The company maintains solid liquidity (1.46x current ratio) despite elevated leverage (1.31x D/E), supported by robust interest coverage of 8.3x and consistent operating cash flow. Revenue growth is modest at 1.9% YoY, but the 23.6% EPS growth reflects effective capital allocation and shareholder returns despite flat net income.

KO Strengths

+ Exceptional profitability with 27.3% net margin and 61.6% gross margin, indicating strong pricing power and operational efficiency
+ Outstanding ROE of 40.7% and ROA of 12.5% demonstrate superior capital returns and asset productivity
+ Strong free cash flow generation of 5.3B with 11.0% FCF margin provides ample capacity for dividends and debt service
+ Solid interest coverage of 8.3x and adequate liquidity (1.46x current ratio) support financial stability despite high leverage

KO Risks

! Leverage of 1.31x D/E is elevated, with long-term debt of 42.1B exceeding stockholders' equity; rising interest rates could pressure earnings
! Revenue growth of only 1.9% YoY indicates limited top-line expansion, reliant on margin management and share buybacks for earnings growth
! High insider activity (41 Form 4 filings in 90 days) warrants monitoring to ensure alignment with shareholder interests
! Modest capex of 2.1B relative to depreciation and competitive pressures may indicate challenges in organic growth investments

Key Metrics to Watch

* Revenue growth trajectory and geographic segment performance
* Operating cash flow sustainability and free cash flow generation
* Debt reduction or leverage management trends
* Gross margin stability amid commodity and currency headwinds

KO Financial Metrics

Revenue

$47.9B

Net Income

$13.1B

EPS (Diluted)

$3.04

Free Cash Flow

$5.3B

Total Assets

$104.8B

Cash Position

$10.3B

KO Profitability Ratios

Gross Margin 61.6%

Operating Margin 28.7%

Net Margin 27.3%

ROE 40.7%

ROA 12.5%

FCF Margin 11.0%

KO Balance Sheet & Liquidity

Current Ratio

1.46x

Quick Ratio

1.25x

Debt/Equity

1.31x

Debt/Assets

0.0%

Interest Coverage

8.32x

Long-term Debt

$42.1B

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Data Source: SEC EDGAR | Analysis Date: Mar 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI