The business delivers on execution—four consecutive earnings beats, a wide economic moat, and margins that rank best-in-class—but at a forward P/E of 23.2x and a PEG of 4.14, the current price fully reflects those qualities, leaving almost no upside headroom, an unfavorable risk/reward geometry, and a free cash flow conversion rate that lags the headline earnings quality.
Thesis pillars
- Consistent Earnings Beat Record→Stable
- Sparkling Category Concentration↓Deteriorating
- Wide Moat Best In Class Margins→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 20, 2026· older than 90 days
Coca-Cola Company (The) (KO) Stock Analysis
Breakout setup
Consumer Defensive · Beverages - Non-Alcoholic
Hold if already holding. Not a fresh buy at $94.80, but acceptable to hold if already in. Reasons: Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier.
The Coca-Cola Company sells beverages in more than 200 countries and territories through independent bottling partners and consolidated operations, owning or licensing brands across sparkling soft drinks, water, sports, coffee, tea, juice, and emerging categories. In 2025, the... Read more
Hold if already holding. Not a fresh buy at $94.80, but acceptable to hold if already in. Reasons: Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier. Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Maintain position. Not compelling to add more. Score 5.4/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 97d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Coca-Cola Company (The)
About Coca-Cola Company (The)
The Coca-Cola Company sold 33.8 billion unit cases worldwide during 2025, with Trademark Coca-Cola representing 47% of worldwide unit case volume and sparkling soft drinks accounting for 69% of total volume across more than 200 countries and territories. Products bearing the company's trademarks are consumed at a rate of 2.2 billion servings per day. The company operates across five segments — EMEA, Latin America, North America, Asia Pacific, and Bottling Investments — with unit case volume outside the United States representing 84% of the global total in 2025.
The Coca-Cola Company's business separates into concentrate operations — selling beverage bases and syrups to authorized bottling partners — and finished product operations primarily through the Bottling Investments segment. Concentrate operations generate higher gross profit margins, while finished product operations generate higher net operating revenues per unit. The five largest independent bottling partners in 2025 — Coca-Cola FEMSA, Coca-Cola Europacific Partners, Coca-Cola HBC AG, Arca Continental, and Swire Coca-Cola — collectively handled 44% of total worldwide unit case volume. Mexico, China, Brazil, and India together accounted for 33% of worldwide unit case volume, representing the company's largest non-U.S. markets. In many markets, PepsiCo is the primary competitor, alongside Nestlé, Keurig Dr Pepper, and Danone. The company has also directly entered alcohol ready-to-drink beverages in multiple markets outside the United States.
Show full overview
Supply chain disruption risk centers on raw material sourcing: the 10-K discloses that some ingredients and supplies are available from only a limited number of suppliers, or from a sole supplier, with contingency plans that may not prevent shortfalls. Inflationary pressures on input costs — including agricultural commodities, packaging, energy, and transportation — continued through 2025 and are expected to persist into 2026. If price increases on finished products are insufficient to offset higher sourcing and manufacturing costs, profitability may be adversely affected, depending on competitive dynamics with PepsiCo and private-label alternatives.
See also: Consumer Defensive · Beverages - Non-Alcoholic
From Coca-Cola Company (The)'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated Oct 27, 2026Recent Developments — Coca-Cola Company (The)
Latest news
- NEWS Coca-Cola Yields Just 2.2% Compared to 4.3% for PepsiCo. Here's the Better Dividend King Stock for Generating Long-Term — The Motley Fool Oct 27, 2026 neutral
- NEWS The Coca-Cola Company 2026 Q3 - Results - Earnings Call Presentation (NYSE:KO) 2026-10-27 - Seeking Alpha — Seeking Alpha Oct 27, 2026 neutral
- NEWS KO stock rises slightly as Coca-Cola raises 2026 outlook for third straight quarter - TradingView — TradingView Oct 27, 2026 positive
- NEWS Coca-Cola hikes earnings outlook, even as it sees lackluster demand in North America - CNBC — CNBC Oct 27, 2026 neutral
- NEWS Coca-Cola, Boeing And 3 Stocks To Watch Heading Into Tuesday - Benzinga — Benzinga Oct 27, 2026 neutral
Latest item Oct 27, 2026 · Generated 2026-11-04T11:54:38Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductsparkling soft drinks69%10-K Item 1: 'Sparkling soft drinks represented 69% of our worldwide unit case volume in both 2025 and 2024.'
- MEDIUMProductTrademark Coca-Cola47%10-K Item 1: 'Trademark Coca-Cola accounted for 47% of our worldwide unit case volume in both 2025 and 2024.'
- MEDIUMcounterpartyfive bottling partners44%10-K Item 1: 'these five bottling partners combined represented 44% of our total worldwide unit case volume'
- MEDIUMGeographicMexico, China, Brazil and India33%10-K Item 1: 'Mexico, China, Brazil and India, which together accounted for 33% of our worldwide unit case volume'
- HIGHSuppliersole supplier10-K Item 1A: 'Some of the raw materials and supplies used in the production of our products are available from a limited number of suppliers, or from a sole supplier'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $94.80, but acceptable to hold if already in. Reasons: Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier. Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Maintain position. Not compelling to add more. Analyst target $87.98 reached (−7.2%), stop $91.12 (−4.0%), A.R:R -0.8:1. Score 5.4/10, moderate confidence.
Analyst target $87.98 reached (−7.2% from $94.80); no take-profit level is published. Analyst target $87.98 reached (−7.2%), stop $91.12 (−4.0%), A.R:R -0.8:1. Stop-loss: $91.12.
Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier; Analyst target reached - limited upside remaining.
Coca-Cola Company (The) trades at a P/E of 28.3 (forward 26.9). TrendMatrix value score: 3.6/10. Verdict: Hold.
35 analysts rate KO, with a consensus score of 4.0/5. 24 analysts publish price targets averaging $98.
What does Coca-Cola Company (The) do?The Coca-Cola Company sells beverages in more than 200 countries and territories through independent bottling partners...
The Coca-Cola Company sells beverages in more than 200 countries and territories through independent bottling partners and consolidated operations, owning or licensing brands across sparkling soft drinks, water, sports, coffee, tea, juice, and emerging categories. In 2025, the Coca-Cola system sold 33.8 billion unit cases, with Trademark Coca-Cola accounting for 47% of worldwide unit case volume and sparkling soft drinks representing 69% of total volume.