Coca-Cola.
Beep! Beep! You are in the supermarket, looking at your phone in the queue, suddenly something catches your attention. A red bottle of Coca-Cola. You start noticing people around you wear t-shirts with them, local restaurants have umbrellas with their logos, even some have ornaments on their walls in their design. But isn’t this just a beverage company? Why should I buy it? Let’s check this company out! :)
Stock Information
Coca-Cola manufactures not only their flagship carbonated drink, but also several others:
They have a market share in the World of 46.5%!
Many recognizable brands in their portfolio: FuzeTea, Schweppes, Sprite and others! Psst… In McDonald’s every soft drink except for Ice Tea is owned by Coca-Cola. I know it because I worked there! :)
Strong history of predictibility: over 138 years!
Dividend king: they have been growing their dividend for 62 years!
Revenue Growth
A company which is consistently growing their revenues is certanily a great business to own, right? :) Let’s see if Coca-Cola does that:
A bit volatile, isn’t it? That’s not the best sign for me, even though they have a proven track record.
Financial Health
A great balance sheet is a must-have in any investment you make. That’s why I created an interactive visualization, to help you with that :)
As Tony Stark would say:
That's a neat little gadget. I like the way you've managed to make such a complex concept as a balance sheet visually appealing and easy to understand. It's exactly the kind of thing I'd expect from a forward-thinking investor. Keep up the good work
Not the best balance sheet for such an established company, but let’s have a look at their Debt / EBITDA": 2.94 Not the best, as it would take them 2.94 years to pay off all of their debt.
Shareholder Yield
A new section in my refreshed newsletter :)
Here I will try to give a simple score rating based on diffrent metrics connected with dividends, buybacks and others, here it is:
Profit Margin
They have a profit margin of 22.92%, which I must say surprised me, as I thought that they would have a smaller profit margin because of the nature of the food business, but no, they have a strong brand, so can charge more! :)
Valuation
Conclusion
While Coca-Cola’s tremendous market leadership is doubtless, slow revenue growth is what deters me, and currently I’d rather buy Mondelez instead of them.
PS: I recently started a youtube channel with funny investing videos: https://youtube.com/@monopolisticinvestor?si=FFWIK4b8ZgjebNQW