Coca-Cola Stock Analysis: Financial Insights, Analyst Ratings, and Investment Outlook

The Coca-Cola Company (NYSE: KO) is a global beverage leader, renowned for its iconic brand and diversified portfolio. This streamlined analysis delivers essential financial metrics, analyst ratings, and investment recommendations, crafted for clarity and based on the latest data as of May 29, 2025, as shown in the finance card above.

Key Financial Highlights

Revenue Growth: Q1 FY2025 (ended March 31, 2025) reported $11.13B in revenue, down 1.51% YoY, but adjusted revenue of $11.22B beat estimates of $11.14B. Full-year 2024 revenue was $47.06B, up 2.86% YoY. Organic revenue (non-GAAP) grew 6% in Q1 2025, driven by 5% price/mix growth.

Earnings: Q1 FY2025 adjusted EPS was $0.73, up 1% YoY, beating estimates by $0.02. Reported EPS was $0.77, up 5% YoY. Full-year 2025 EPS is projected at $2.94–$2.97, a 2–3% increase from $2.88 in 2024.

Unit Case Volume: Grew 2% in Q1 2025, led by demand in India, China, and Brazil, though North America remained flat.

Profitability: Operating margin at 32.9%, with comparable operating margin (non-GAAP) at 33.8%, reflecting strong cost management. ROA at 1.77%, net margin at 2.9%, and debt-to-equity ratio at 0.7 indicate financial stability.

Cash Flow: Q1 2025 cash flow from operations was negative $5.2B, with free cash flow (non-GAAP) at -$5.5B, down due to higher tax payments and working capital cycles.

Stock Metrics: Current price at $71.49 (per the finance card above), with a 12-month range of $60.62–$74.38. Market cap is $309.26B. P/E ratio is not specified but considered high relative to historical averages. Dividend yield at 3.12% with 62 years of consecutive increases.

Challenges: Currency headwinds (3–4% on revenue, 6–7% on EPS in 2025), tariff-related cost increases (e.g., aluminum), and sluggish U.S. demand pose risks. Recent insider sales ($2M by an EVP) and a data breach may impact sentiment.

Coca-Cola Financial Snapshot (Q1 FY2025)

Revenue: $11.13B (-1.51% YoY, adjusted $11.22B)
Adjusted EPS: $0.73 (+1% YoY, beat estimates by $0.02)
Unit Case Volume: +2% (global)
Operating Margin: 32.9% (comparable 33.8%)
ROA: 1.77%
Net Margin: 2.9%
Debt-to-Equity: 0.7
Free Cash Flow: -$5.5B
Stock Price: $71.49 (Market Cap: $309.26B)
Dividend Yield: 3.12%

Analyst Ratings

Consensus: “Buy” from 37 analysts (32 Buy, 5 Hold, 0 Sell).

Price Target: Average $79.33, implying an 11% upside from $71.49.
- High: $86.00 (+20.3% upside).
- Low: $70.00 (-2.1% downside).
  
  Recent Updates:
  - Truist (May 8, 2025): “Buy,” $80 target, citing strategic strengths.
    
    TipRanks (May 27, 2025): Positive outlook based on market share gains and pricing power.
    
    Morgan Stanley (2024): Noted tariff risks but maintained optimism for 2025.
    
    Sentiment: Bullish on Coca-Cola’s pricing power, emerging market growth, and premium brands (e.g., Fairlife, Topo Chico), but tempered by currency and tariff concerns.

Investment Outlook

Strengths: Coca-Cola’s global scale, 6% organic revenue growth, and 62-year dividend growth streak make it a defensive powerhouse. Strong performance in emerging markets and premium products supports long-term stability. The 3.12% dividend yield appeals to income-focused investors.

Risks: High valuation, currency headwinds, and tariff-driven cost pressures (e.g., 25% aluminum tariffs) could squeeze margins. Flat North American demand and negative Q1 cash flow raise concerns. The stock’s neutral technicals (near 20-day moving average of $71.43) suggest limited short-term momentum.

Recommendation: Moderate Buy for long-term investors seeking stability and dividends. The stock’s defensive qualities shine in volatile markets, but its high valuation and currency risks suggest waiting for a dip to $68–$70 for a better entry point. Ideal for income-focused portfolios.

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