COCA COLA CO (KO)

Price—Loading quote

AI: Overvalued

Price checkThe current price demands more growth than this mature business normally delivers.

Before the August 17 market open, the latest quote was $82.61. That equals 27.2 times 2025 reported earnings of $3.04 per share. Applying management's raised 9%–10% growth outlook to 2025 adjusted earnings of $3.00 gives about $3.27–$3.30 for 2026, still a demanding 25.0–25.3 times earnings. Normalized 2025 free cash flow—cash left after operating and investment spending—yielded only 3.2% at this price, while the $2.12 annual dividend yields 2.6%. Those modest starting returns support an Overvalued verdict.

Big pictureSales and cash remain durable, although recent growth is stronger than the long record.

Revenue rose from $33.0 billion in 2020 to $47.9 billion in 2025, but 2025 growth was only 2%. Reported free cash flow was $5.3 billion because it included a one-time $6.1 billion fairlife acquisition payment; excluding that payment, cash generation was $11.4 billion. Momentum strengthened in 2026: second-quarter revenue grew 7%, volume grew 5%, and first-half free cash flow reached $6.9 billion. Beverage demand is usually steady because purchases are small and frequent, although affordability and event traffic still cause regional swings.

Business strengthCash generation supports the dividend, though debt leaves less room for mistakes.

At April 3, Coca-Cola held $10.6 billion of cash against $43.8 billion of debt, leaving $33.2 billion of net debt, about 2.2 times 2025 operating earnings before interest, tax and noncash charges. Near-term assets exceeded near-term obligations by $8.0 billion, providing adequate liquidity. The 2025 dividend consumed roughly 77% of normalized free cash flow. Buybacks were modest at $746 million versus $279 million of stock compensation; the diluted share count inferred from earnings declined only about 0.2%. Capital allocation therefore favors dividends over meaningful debt reduction or share shrinkage.

What could change the storyFaster cash growth could justify the premium, while affordability setbacks would expose it.

The strongest bull case is sustained high-single-digit earnings growth: second-quarter volume rose 5%, adjusted operating margin reached 35.6%, and Coca-Cola Zero Sugar volume grew 16%. The bear case is that this pace fades; Asia-Pacific prices and sales mix fell 9% despite 8% volume growth, showing that affordability can weaken revenue quality, while higher input costs already offset some gains. The price appears to require roughly 6% long-run per-share cash growth from a 3.2% starting yield. Persistent growth above that, or a valuation nearer 20–22 times 2026 earnings, would change the conclusion.

$82.61 price considered

AI: News

Forecast raised after growthStrong second-quarter growth lifted expectations, but the higher forecast still assumes moderate long-term expansion.

On July 28, Coca-Cola reported second-quarter revenue of $13.4 billion, up 7%, with 5% volume growth and adjusted earnings of $0.97 per share, up 11%. It raised expected 2026 adjusted earnings growth to 9%–10% and projected organic revenue growth around 5%. Shares closed 5.0% higher at $88.27; Reuters connected the rally with the results. Strong volume and wider margins increase expected future cash, although currency benefits contributed two percentage points to adjusted earnings growth.

Fairlife ransomware interruptionFairlife's ransomware shutdown ended quickly, limiting the feared hit to sales and cash.

Coca-Cola disclosed on July 16 that ransomware had forced fairlife to suspend production across its United States facilities. Shares closed the next session at $81.56, down 3.96%; the timing suggests concern, but does not isolate the incident from other market influences. By July 27, most production at all four facilities had resumed, existing inventory had largely protected store availability, and Coca-Cola said it did not expect a material financial impact. Product quality and Canadian production were unaffected.

India listing exploredAn Indian bottler listing could release capital and reduce lower-profit bottling work.

On June 1, Coca-Cola said it was preparing for a possible 2027 Indian listing of Hindustan Coca-Cola Holdings and might sell part of its remaining interest. Jubilant Bhartia Group already bought 40% in July 2025. The bottler operates 14 plants across ten states, so a listing could complete Coca-Cola's shift away from owning capital-heavy bottling operations and release cash. However, no valuation, sale size or guaranteed timetable was disclosed, and no reliable distinct share-price reaction was identified.

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$47.94B	$47.06B	$45.75B	$43.00B	$38.66B	$33.01B	$37.27B	$34.30B	$36.21B	$41.86B	—	—	—	—	—	—	—	—	—
Gross profit	$29.54B	$28.74B	$27.23B	$25.00B	$23.30B	$19.58B	$22.65B	$21.23B	$22.49B	$25.40B	$26.81B	$28.11B	$28.43B	$28.96B	$28.33B	$22.43B	$19.90B	$20.57B	$18.45B
Operating income	$13.76B	$9.99B	$11.31B	$10.91B	$10.31B	$9.00B	$10.09B	$9.15B	$7.75B	$8.66B	$8.73B	$9.71B	$10.23B	$10.78B	$10.17B	$8.41B	$8.23B	$8.45B	$7.25B
EBITDAderived	$14.81B	$11.07B	$12.44B	$12.17B	$11.76B	$10.53B	$11.45B	$10.24B	$9.02B	$10.44B	$10.70B	$11.68B	$12.21B	$12.76B	$12.13B	$9.86B	$9.47B	$9.67B	$8.41B
Net income	$13.11B	$10.63B	$10.71B	$9.54B	$9.77B	$7.75B	$8.92B	$6.43B	$1.25B	$6.53B	$7.35B	$7.10B	$8.58B	$9.02B	$8.58B	$11.79B	$6.82B	$5.81B	$5.98B
Basic EPSper diluted share	$3.05	$2.47	$2.48	$2.20	$2.26	$1.80	$2.09	$1.51	$0.29	$1.51	$1.69	$1.62	$1.94	$2.00	$1.88	$2.55	$2.95	$2.51	$2.59
Diluted EPSper diluted share	$3.04	$2.46	$2.47	$2.19	$2.25	$1.79	$2.07	$1.50	$0.29	$1.49	$1.67	$1.60	$1.90	$1.97	$1.85	$2.53	$2.93	$2.49	$2.57

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$998.7K disclosed value

Sells (SEC code S)71$275.32M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 10, 2026Form 4 · 10b5-1	MANN JENNIFER KExecutive Vice President	SellCommon Stock, $.25 Par Value	24.0K	$83.41	$2.00M	157.4K
Jun 9, 2026Form 4 · 10b5-1	MANN JENNIFER KExecutive Vice President	SellCommon Stock, $.25 Par Value	26.0K	$80.75	$2.10M	181.4K
Jun 9, 2026Form 4 · 10b5-1	MANN JENNIFER KExecutive Vice President	SellCommon Stock, $.25 Par Value	55.2K	$80.75	$4.45M	207.4K
Jun 9, 2026Form 4 · 10b5-1	MANN JENNIFER KExecutive Vice President	SellCommon Stock, $.25 Par Value	18.8K	$80.75	$1.52M	207.4K
Jun 8, 2026Form 4 · 10b5-1	MANN JENNIFER KExecutive Vice President	SellCommon Stock, $.25 Par Value	48.4K	$79.46	$3.85M	207.4K

Review ownership filings at SEC.gov ↗

COCA COLA CO (KO)

Financial charts

Financial statements

Insider buys & sells