KO - Embedded Expectations Analysis - 2018 03 12
The Coca-Cola Company (KO:USA) is currently trading near historical highs relative to UAFRS-based (Uniform) Earnings, with a 29.5x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about their Coke Zero brand, initiatives, and investments.Specifically, management generated an excitement marker when saying that global revenue for their Coke Zero brand is growing in double digits year-to-date. Additionally, they are confident in their ongoing productivity initiatives, and in the success that the incubator approach of their Venturing & Emerging Brands unit has had for their investments. Furthermore, they are confident in Jim Dinkins because of his experience in North America, and that their low water growth rate numbers are a result of a deliberate pull-back in parts of the world where they were too heavily invested in very low-margin, large-bulk water. Also, they are confident in their local bottlers being able to increase the degree of execution and service to their larger customers.
Coca-Cola is a nonalcoholic beverage company. The company owns or licenses and markets nonalcoholic beverage brands, which it groups into the following category clusters: sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. The company's nonalcoholic sparkling soft drink brands are Coca-Cola, Diet Coke, Fanta and Sprite. The company markets, manufactures and sells beverage concentrates and syrups, including fountain syrups; and finished sparkling soft drinks and other nonalcoholic beverages. The company's segments are Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments.
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