KO - Embedded Expectations Analysis - 2020 06 25
The Coca-Cola Company (KO:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 30.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about their bottling operations, their product and packaging mix, and supply chain logisticsSpecifically, management may be overstating their ability to reengineer their bottling investment and North America businesses, assist their bottlers around the world, and emerge stronger from this crisis. Furthermore, they may have concerns about their sales rep redeployments, their product and packaging mix, and coronavirus's impact on their vertically integrated businesses and revenue mix. Also, they may be concerned about reductions in direct consumer communication, their supply chain logistics, and the availability of different sales channels and events. Finally, they may be exaggerating the spike of stock-up volumes for at-home consumers, and they may be concerned about emerging market business underperformance
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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