Coca-Cola HBC AG (LON:CCH) led the LSE gainers with a relatively large price hike in the past couple of weeks. The recent jump in the share price has meant that the company is trading at close to its 52-week high. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Coca-Cola HBC’s outlook and value based on the most recent financial data to see if the opportunity still exists.
According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 18.19x is currently trading slightly below its industry peers’ ratio of 19.76x, which means if you buy Coca-Cola HBC today, you’d be paying a decent price for it. And if you believe Coca-Cola HBC should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. Furthermore, Coca-Cola HBC’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 45% over the next couple of years, the future seems bright for Coca-Cola HBC. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? CCH’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at CCH? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?
ADVERTIsem*nT
Are you a potential investor? If you’ve been keeping an eye on CCH, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for CCH, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 1 warning sign for Coca-Cola HBC you should be aware of.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The long-term outlook is highly positive for co*ke's cash trends, and so investors can count on further steady dividend growth over the coming years (and decades).
Coca-Cola HBC long term debt for 2022 was $3.248B, a 7.42% increase from 2021. Coca-Cola HBC long term debt for 2021 was $3.024B, a 1.41% increase from 2020.
Coca-Cola HBC managed to grow EPS by 15% per year, over three years. That growth rate is fairly good, assuming the company can keep it up. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing.
Based on analysts offering 12 month price targets for KO in the last 3 months. The average price target is $67.85 with a high estimate of $72 and a low estimate of $58.
The Coca-Cola Corporation, which has been around for over 130 years, and PepsiCo, with roots dating back to 1898, have been long-term competitors for ages. With its market value, the multinational food and beverage company PepsiCo directly follows Coca-Cola in the ranking of the largest companies in the world.
Coca-Cola (NYSE: KO) is often considered a safe blue chip stock. It owns the world's top soda brand, it generates plenty of cash, and it pays consistent dividends. But over the past 12 months, its stock declined 3% as the S&P 500 rallied 23%.
Pepsi is the cheaper stock, but investors might still prefer paying the premium for co*ke over its less expensive rival. Sure, you can own Pepsi for 2.5 times sales, or less than half of co*ke's price-to-sales (P/S) ratio of 5.6. You'll get roughly the same 3% dividend yield in either case.
The 12 analysts with 12-month price forecasts for KO stock have an average target of 68.33, with a low estimate of 60 and a high estimate of 74. The average target predicts an increase of 10.07% from the current stock price of 62.08.
According to the latest TipRanks data, approximately 39.65% of the company's stock is held by institutional investors, 5.84% is held by insiders, and 37.68% is held by retail investors. Warren Buffett owns the most shares of Coca-Cola (KO).
Coca-Cola tops earnings estimates, hikes revenue outlook on higher prices. Coca-Cola reported quarterly earnings and revenue that topped Wall Street's expectations. The beverage giant also raised its outlook for its full-year organic revenue. co*ke reported that its global unit case volume increased 1%.
We have a diversified shareholder structure, with more than two-thirds of our free-float held by UK and us institutional investors. Our principal shareholders are Kar-Tess Holding with 23% and The Coca-Cola Company with 21%, of our outstanding ordinary shares.
The 12 analysts offering 12 month price targets for Coca Cola HBC AG have a median target of 2,910.64, with a high estimate of 5,157.45 and a low estimate of 2,153.19.
According to the latest long-term forecast, Coca-Cola price will hit $65 by the middle of 2025 and then $70 by the middle of 2026. Coca-Cola will rise to $75 within the year of 2027, $85 in 2028, $100 in 2029, $110 in 2030 and $125 in 2033.
As of 2024-06-01, the Fair Value of Coca-Cola Co (KO) is 30.82 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 62.93 USD, the upside of Coca-Cola Co is -51%.
Coca‑Cola HBC is one of the world's largest bottlers of products of The Coca‑Cola Company, with annual sales of more than 2 billion-unit cases across 28 countries and three continents, serving a population of approximately 594 million people.
Introduction: My name is Geoffrey Lueilwitz, I am a zealous, encouraging, sparkling, enchanting, graceful, faithful, nice person who loves writing and wants to share my knowledge and understanding with you.
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