The Coca-Cola Company (KO)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-and-Graham-style investor, I ask whether Coca-Cola is a wonderful business at a fair price. The business quality is plain: it sells concentrates, syrups, and nonalcoholic drinks worldwide, employs 65,900 people, and in fiscal 2025, the year ended 2025-12-31, filed revenue was $47.9B, net income $13.1B, and diluted EPS $3.04. That compares with fiscal 2024, the year ended 2024-12-31, revenue $47.1B, net income $10.6B, diluted EPS $2.46, and fiscal 2023, the year ended 2023-12-31, revenue $45.8B, net income $10.7B, diluted EPS $2.47. The latest filed quarter, fiscal Q1 2026 ended 2026-04-03, showed revenue $12.5B, net income $3.9B, and diluted EPS $0.91, so the machine still works. FairStock calculates ROE 42.05%, ROCE 9.40%, D/E 1.16, Piotroski 7/9, Altman Z 4.79, and trailing FCF $14.3B, a 3.7% FCF yield. The brand and global scale are real advantages, and the latest quarter shown had a 33.07% net margin. Valuation is the rub. At the 2026-10-13 close of $90.11, FairStock computes P/E 27.06, P/B 10.73, PEG 1.68, EV/EBITDA 21.09, and a Graham Number of $25.09. Margin of safety is negative 259.15%. The Lynch category is STALWART: profit grew 11.1% a year over five years and revenue 7.7%. This is a fine business, but the price asks for continued steady execution; I would want a wider discount before calling it a bargain.

In plain English: Coca-Cola is a global drinks company that sells sparkling soft drinks, water, sports drinks, coffee, tea, juices, and similar beverages. The business looks strong: it earns high profits on each sale, produces a lot of cash, and has grown steadily in recent years. But the shares look expensive compared with the company's current profits and the value of its net assets, so the price already reflects a lot of good news.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q3 2025 10-Q (period ended 2025-09-26) · fiscal Q2 2025 10-Q (period ended 2025-06-27) · fiscal Q1 2025 10-Q (period ended 2025-03-28) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer