Coca-Cola Europacific Partners plc Ordinary Shares (CCEP)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $1.7 billion in annual free cash flow (4.1% yield on market cap)
• High return on equity of 22.9% demonstrating efficient capital deployment
• Attractive 2.5% dividend yield providing steady income returns
• Established organization with 37,003 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($44) with negative 118% margin of safety—limited downside protection
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Coca-Cola Europacific Partners plc Ordinary Shares is a mid-cap consumer defensive company valued at $43.1 billion. Revenue stands at $20.9 billion. From a quality standpoint, Coca-Cola shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is reasonably priced at 19.4x earnings, with trades far above its Graham Number ($44) with no margin of safety. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.7 billion in annual free cash flow (4.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer