KO - Embedded Expectations Analysis - 2021 04 29
The Coca-Cola Company (KO:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 32.7x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about their portfolio streamlining, new product and packaging launches, and market share declinesSpecifically, management may lack confidence in their ability to maintain marketing cost savings, capitalize on smaller packaging in North America, and continue to attract new energy drink customers. Furthermore, they may have concerns about their market share declines, Topo Chico Hard Seltzer's launch in the U.S., and persisting COVID-19 headwinds. Moreover, management may be exaggerating the benefits of their portfolio streamlining, innovation pipeline, and brand building efforts. Finally, they may lack confidence in their ability to meet their 2030 carbon target and focus on both short- and long-term performance
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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