COCA-COLA NYSE-KO

TIMELINESS
SAFETY
TECHNICAL

3
1
2

RECENT
PRICE

High:
Low:

Raised 10/30/15

26.8
19.2

22.6
20.2

24.7
19.7

32.2
22.8

20.5 RELATIVE
DIVD
Median: 19.0) P/E RATIO 1.25 YLD 3.3%
42.12 P/ERATIO 20.9(Trailing:
32.8
20.1

Raised 1/15/16

2018-20 PROJECTIONS

M
0
3
2

A
0
0
0

M
1
0
0

J
0
0
0

J
0
0
0

A
0
1
0

S
0
2
2

35.9
30.6

40.7
33.3

43.4
36.5

45.0
36.9

43.9
36.6

Target Price Range

2018 2019 2020
128
96
80
64
48
40
32
24

2-for-1

Annl Total
Price
Gain
Return
High
55 (+30%) 10%
Low
45
(+5%)
5%
Insider Decisions
F
2
1
1

32.9
24.7

LEGENDS
16.0 x Cash Flow p sh
. . . . Relative Price Strength
2-for-1 split 8/12
Options: Yes
Shaded area indicates recession

New 7/27/90

BETA .70 (1.00 = Market)

to Buy
Options
to Sell

29.7
18.7

O
0
6
5

16
12
% TOT. RETURN 12/15

Institutional Decisions
1Q2015
2Q2015
3Q2015
623
656
664
to Buy
to Sell
848
819
766
Hlds(000)271869827125842766270

Percent
shares
traded

15
10
5

1 yr.
3 yr.
5 yr.

1999 2000 2001E 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
4.01
4.12
3.53
3.96
4.31
4.56
4.88
5.20
6.22
6.91
6.73
7.66 10.29 10.74
.81
.89
.96
.99
1.16
1.23
1.29
1.40
1.54
1.79
1.75
2.09
2.41
2.46
.65
.74
.80
.83
.98
1.03
1.09
1.19
1.29
1.51
1.47
1.75
1.92
1.97
.32
.34
.36
.40
.44
.50
.56
.62
.68
.76
.82
.88
.94
1.02
.22
.15
.15
.17
.17
.16
.19
.30
.36
.43
.43
.48
.65
.62
1.92
1.87
2.29
2.39
2.89
3.31
3.45
3.65
4.69
4.43
5.38
6.76
6.99
7.34
4943.2 4969.5 4972.5 4942.0 4883.1 4818.7 4738.0 4636.0 4636.0 4624.0 4606.0 4584.0 4526.0 4469.0
47.5
37.5
30.5
30.2
22.6
22.6
19.7
18.5
21.0
17.8
16.6
16.2
17.4
18.8
2.71
2.44
1.56
1.65
1.29
1.19
1.05
1.00
1.11
1.07
1.11
1.03
1.09
1.20
1.0%
1.2%
1.5%
1.6%
2.0%
2.2%
2.6%
2.8%
2.5%
2.8%
3.4%
3.1%
2.8%
2.8%
CAPITAL STRUCTURE as of 10/2/15
Total Debt $46.186 bill. Due in 5 Yrs. $31.0 bill.
LT Debt $25.949 bill. Total Int. $570.0 mill.
(Total interest coverage: 14.6x)
(50% of Capl)
Pension Assets-12/14 $8.9 bill. Oblig. $10.3 bill.
Pfd Stock None
Common Stock 4,342,000,000 shs.
MARKET CAP: $183 billion (Large Cap)
CURRENT POSITION 2013
2014 10/2/15
($MILL.)
Cash Assets
17121 18010 19160
Receivables
4873
4466
4028
Inventory (Avg Cst) 3277
3100
2910
Other
6033
7410 10496
Current Assets
31304 32986 36594
Accts Payable
1933
2089
2250
Debt Due
17925 22682 20237
Other
7953
7603
9058
Current Liab.
27811 32374 31545
ANNUAL RATES Past
of change (per sh)
10 Yrs.
Sales
9.5%
Cash Flow
8.5%
Earnings
8.0%
Dividends
9.5%
Book Value
10.0%

Past Estd 12-14

5 Yrs.
to 18-20
10.0%
2.5%
8.5%
4.0%
7.5%
4.5%
8.5%
7.0%
8.5%
2.5%

QUARTERLY SALES ($ mill.)

Calendar Mar.Per Jun.Per Sep.Per Dec.Per
2012
2013
2014
2015
2016
Calendar

2012
2013
2014
2015
2016
Calendar

2012
2013
2014
2015
2016

VALUE
LINE

11137 13085 12340 11455

11035 12749 12030 11040
10576 12574 11976 10872
10711 12156 11427 9956
10500 12400 11600 10500
EARNINGS PER SHARE A
Mar.Per Jun.Per Sep.Per Dec.Per
.45
.61
.50
.41
.46
.63
.53
.46
.44
.64
.53
.43
.48
.63
.51
.38
.49
.64
.54
.43
QUARTERLY DIVIDENDS PAID B
Mar.31 Jun.30 Sep.30 Dec.31
-.255
.255
.51
-.28
.28
.56
-.305
.305
.61
-.33
.33
.66

Full
Year

48017
46854
45998
44250
45000

(A) Based on diluted shares. Next earnings

report due Feb. 9th. Excludes nonrecurring
gain/(losses): 99, (16); 00, (30); 01, (1);
02, (22); 03, (9); 04, (3); 05, (7); 06,

Full
Year

1.97
2.08
2.04
2.00
2.10
Full
Year

1.02
1.12
1.22
1.32

23104 24088 28857

30.8% 31.3% 30.0%
932.0 938.0 1163.0
5196.0 5568.0 5981.0
23.5% 22.4% 24.0%
22.5% 23.1% 20.7%
414.0 d449.0 d1120
1154.0 1314.0 3277.0
16355 16920 21744
29.8% 30.7% 24.2%
31.8% 32.9% 27.5%
15.4% 15.7% 13.0%
52%
52%
53%

31944
30.3%
1228.0
7050.0
22.2%
22.1%
d812.0
2781.0
20472
30.6%
34.4%
17.2%
50%

30990 35123 46554 48017

30.5% 31.4% 27.9% 26.6%
1236.0 1443.0 1954.0 1982.0
6824.0 8144.0 8932.0 9019.0
22.8% 22.7% 23.9% 23.1%
22.0% 23.2% 19.2% 18.8%
3830.0 3071.0 1214.0 2507.0
5059.0 14041 13656 14736
24799 31003 31635 32790
23.4% 18.5% 20.2% 19.4%
27.5% 26.3% 28.2% 27.5%
12.2% 13.1% 14.6% 13.5%
56%
50%
48%
51%

THIS
STOCK

VL ARITH.*
INDEX

5.1
29.7
51.2

-6.9
37.7
52.1

VALUE LINE PUB. LLC

18-20

10.64 10.54 10.20 10.45 Sales per sh

2.58
2.53
2.45
2.60 Cash Flow per sh
2.08
2.04
2.00
2.10 Earnings per sh A
1.12
1.22
1.32
1.40 Divds Decld per sh B
.58
.55
.65
.65 Capl Spending per sh
7.54
6.94
7.25
7.55 Book Value per sh C
4402.0 4366.0 4335.0 4300.0 Common Shs Outstg D
19.1
20.0
21.0
Avg Annl P/E Ratio
1.07
1.06
1.05
Relative P/E Ratio
2.8%
3.0%
3.2%
Avg Annl Divd Yield

12.40
3.20
2.65
1.70
.65
8.45
4150.0
19.0
1.20
3.4%

46854 45998
28.3% 28.1%
1977.0 1976.0
9374.0 9091.0
23.0% 22.5%
20.0% 19.8%
3493.0 612.0
19154 19063
33173 30320
18.3% 18.7%
28.3% 30.0%
13.3% 12.3%
53%
59%

51500
29.0%
2300
11000
23.0%
21.4%
1250
20000
35065
20.5%
31.5%
11.0%
65%

44250
27.5%
2025
8665
22.5%
19.6%
1250
20000
31380
17.5%
27.5%
9.5%
66%

45000
28.0%
2100
9115
23.0%
20.3%
1250
20000
32400
18.0%
28.0%
9.5%
66%

Sales ($mill)
Operating Margin
Depreciation ($mill)
Net Profit ($mill)
Income Tax Rate
Net Profit Margin
Working Capl ($mill)
Long-Term Debt ($mill)
Shr. Equity ($mill)
Return on Total Capl
Return on Shr. Equity
Retained to Com Eq
All Divds to Net Prof

BUSINESS: The Coca-Cola Company is the worlds largest

beverage company. Markets over 500 nonalcoholic beverage
brands through a network of company-owned and independent
bottlers/distributors, wholesalers, and retailers. Leading company/licensed brands include Coca-Cola, Diet Coke, Sprite, Fanta,
Fresca, Dasani, glaceau vitaminwater, Powerade, and Minute Maid.

Intl markets accounted for 57% of 2014 net sales; Advertising expenses, 7.6% of 2014 revenues. Has about 129,250 employees.
Directors and Officers own 1.5% of stock; Berkshire Hathaway,
9.2%; Vanguard, 5.6%; BlackRock, 5.4% (3/15 Proxy). Chairman
and CEO: Muhtar Kent. Inc.: DE. Address: One Coca-Cola Plaza,
Atlanta, GA 30313. Tel.: 404-676-2121. Web: www.coca-cola.com.

Coca-Colas sales and profits likely

remained under pressure in the December quarter. Foreign exchange markets again probably presented the biggest
challenge for the company, with the strong
dollar likely trimming 7% from net revenues and 11% from pretax income. Leaving this aside, earnings still likely declined
5%-10%, with fewer selling days and increased marketing spending among the
factors making for a tough comparison.
We look for modest progress this year.
Cokes long-term objective is to increase
currency-neutral earnings at a high singledigit annual pace, which would represent
a step up from 2015s likely advance of 5%.
Some acceleration in the rate of growth
seems likely in 2016, thanks to incremental benefits from sales-building initiatives,
including efforts over the past year to increase marketing support, and ongoing
cost-cutting measures, which aim to cut $3
billion from expenses by 2019. Still, currency headwinds, though nothing on the
magnitude of 2015, seem likely to persist
into the new year. This, combined with the
unsettled outlook for the global economy,
has prompted us to take a more cautious

stance, cutting a nickel from our 2016

earnings estimate, which now stands at
$2.10 a share.
An investment in Keurig will likely be
brief. Over the past two years, the company has accumulated a 17% stake in the
maker of high-tech coffee machines. Concerns about declining sales caused
Keurigs share price to slump badly during
much of 2015 before the company accepted
a takeover offer from a German investment group, which would likely allow Coke
to turn a small profit on these holdings.
This stocks defensive qualities are
likely its primary attraction, at the
moment. These attributes, including a top
mark for Price Stability and an aboveaverage dividend yield, would likely take
on added appeal should the recent turbulence in global equity markets continue.
Still, appreciation potential to 2018-2020
is modest, partly reflecting our concerns
that driving volume growth for sugary and
artificially sweetened drinks will be
hindered, to a degree, by increased health
consciousness on the part of consumers,
particularly in developed markets.
Robert M. Greene
January 22, 2016

(11); 08, (27); 10, 79; 11, (8); 13, (18); $26.4 bill., $6.04/sh. (D) In millions. (E)
14, (44). (B) Divds historically paid about the Reflects reclassification of sales and expenses.
first April, July, Oct., Dec. Divd reinvestment
plan avail. (C) Includes intangibles. In 14:

2016 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind.
THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscribers own, non-commercial, internal use. No part
of it may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.

Companys Financial Strength

Stocks Price Stability
Price Growth Persistence
Earnings Predictability

A++
100
50
100

To subscribe call 1-800-VALUELINE