Active Broker’s Choice: The Coca-Cola Company (NYSE:KO)

The Coca-Cola Company (NYSE:KO) under comprehensive financial analysis presented as an active mover. Shares moved down -0.52% to trade at $42.03 in recent trading session. The firm has floated short ration of 0.75%, hold to candle to sentiment indicator of Short Ratio, which was 2.29.

Limelight under Ratio Analysis

The Coca-Cola Company (NYSE:KO) has noticeable price to earnings growth ratio of 9.35, which find it more attractive on the other stock that has lower PEG and vice versa. The firm price to earnings ratio calculated as 28.17. The co stands at price to sale ratio of 4.31 that signifies the value placed on each dollar of a firm’s sales or incomes; it is most relevant ratio to compare companies in similar sector. It has price to book ratio of 7.84, which gauges the market price of a share over its book value.

Analysts Rating

The KO held a rough session during the week but was ready to get some critical analysis. The stock was assessed by a pool of analysts at WSJ and came out with some serious outcomes not to be avoided before making investment. The KO ratings chart showed that 14 gave HOLD ratings for the current month as 2 analysts opting for Overweight option for same period. For stocks’ current month, 8 analysts opted for BUY ratings as compared to 1 opting for SELL in the same period. The stock price target chart showed average price target of 43.75 as compared to current price of 42.03.

Taking look on per share earnings estimates, its next year first quarter current estimate trend for EPS was for $0.57 and on annual basis FY 2016 estimate trends at current was for $1.86 as compared to one month ago of $1.87, and for next year per share earnings estimates have $1.94.

Profitability Analysis

The Coca-Cola Company (NYSE:KO) need to consider for profitability analysis, the firm has profit margin of positive 15.60% to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin calculated as 60.70% and 20.60% respectively. KO has returns on investment of 10.20%. The returns on assets were 7.10% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 25.90%, which is measuring profitability by disclosing how much profit generates by KO with the shareholders’ money.

The firm attains analyst recommendation of 2.60 on scale of 1-5. The co has price volatility of 0.81% for a week and 0.82% for a month. Narrow down focus to firm performance, its weekly performance was 0.26% and monthly performance was 4.85%. The stock price of KO is moving up from its 20 days moving average with 0.95% and isolated positively from 50 days moving average with 1.92%.

The Coca-Cola Company (NYSE:KO) current ratio calculated as 1.30, this value is acceptable if it lies in 1.3% to 3%. But it varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 1.20, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 1.98, sometimes it remain same with long term debt to equity ratio.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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