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Coca Cola - Portfolio Project

The document discusses an initial $1,048.38 investment in Coca-Cola stock. It provides details on the company such as its brands, market capitalization, and financial metrics including consistent cash flows, gross and operating profit margins, and balance sheet ratios. Sales growth is forecasted at 8.22% with earnings per share growth of 6.8%. The document recommends buying Coca-Cola stock due to its long-term growth and rising bond and mutual fund investments.

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940 views

Coca Cola - Portfolio Project

The document discusses an initial $1,048.38 investment in Coca-Cola stock. It provides details on the company such as its brands, market capitalization, and financial metrics including consistent cash flows, gross and operating profit margins, and balance sheet ratios. Sales growth is forecasted at 8.22% with earnings per share growth of 6.8%. The document recommends buying Coca-Cola stock due to its long-term growth and rising bond and mutual fund investments.

Uploaded by

api-249694223
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Coca Cola

Mariah Torres, Jina Park, and Jacob


House

The Coca-Cola Company

Brief Overview
Name: Coca Cola
Initial Investment Decision: Generate cash flow
forecasts for the projects, Determine the opportunity
cost of capital, and Use the cash flows and the cost of
capital to compute the relevant investment criteria. Also,
Initial investment records the cost and company record
dividend income when applicable dividends are declared.
Initial Investment Price: $1,048.38 (in Coca-Cola)

The Coca-Cola Company

Company Information
Description: Coca-Cola Company is home to 16 billion dollar
brands, including four of the top five soft drinks: Coca-Cola,
Diet Coke, Fanta, and Sprite. The company owns or licenses
and markets more than 500 beverage brands, mainly
sparkling drinks With the world's largest beverage distribution
system, The Coca-Cola Company reaches thirsty consumers in
more than 200 countries.
Ticker symbol and trade: Stock is listed and traded on the
New York Stock Exchange under the ticker symbol KO.
Sector and Industry: Consumer goods and beverage-soft
drinks. Cap: The average market cap was 165.52B
52 week range: High was 45.00 and Low was 39.10.

The Coca-Cola Company

Company Financial
Interpretation
Cash Flow
Consistent Cash Flow from Year to Year
Overvalued according to last statement
Has $8,209,000 in free cash flow
o

Allows to invest in projects to increase value

The Coca-Cola Company

Company Financial
Interpretation
Income
Gross Profit Margin of 61.69%
o

Indicates high profit

Operating Profit Margin of 21.11%


o

Indicates higher operating costs; less freedom


for pricing

Interest Coverage Ratio of 20.31


o

Indicates lower debt and/or better ability to


pay loans

Overall stable company in terms of


Income
The Coca-Cola Company

Company Financial
Interpretation
Balance Sheets
Working capital of $62 million
o

Lower chance for the need of loans

Current Ratio of 1.02:1


o

Indicates possible liquity problems, however,


more than 1:1 incidates progress

Quick Ratio of .807:1


o

Slightly unacceptable, changed due to market


fluctuations

Overall stable, but needs improvement.


Market lowered due to customer
changes.
The Coca-Cola Company

Company Stock Selection


Guide
Growth Analysis
Sales
10 year historical growth: 10%
5 year recent historical growth: 12.1%
Recent quarter sales: $11,976 -.45%
Growth Rate: 12%
Coca-Colas sales are about on pace with the
other competition, except their sales are much
lower than PepsiCo

The Coca-Cola Company

Company Stock Selection


Guide
Management Evaluation
Pre-Tax Profit on Sales
Last 5 year Average: 28.6%
The five year average percentage of pre-tax
profit on sales is just about staying the same
% Earned on Equity
Last 5 year Average: 28.62%
The percentage of ROE is staying consistent
throughout the last five years, except for a
slight increase in the second year

The Coca-Cola Company

Company Stock Selection


Guide
Forecast Earning/Sales
Sales Growth Rate Forecast: 8.22%
- The historical results of Coca Cola is very good, The sales
growth raised more and more, but the recent sale of
growth had a slight decrease
- The Coca Cola sales rate decreased last year, because
people wanted to consume more healthy drinks and foods.
Forecast Earnings Per Share: 6.8%

Risk/Reward Assessment
Average High PE Forecast: 19.25
Forecast Low Price: 15.07
- We recommend that you buy our stock
Forecast Average % Payout: 50.47%

The Coca-Cola Company

Fundamental Analysis
Coca Cola implemented Fundamental
Analysis in investment decision, because
Fundamental Analysis predict about the
intrinsic value of an investment. The Coca
Cola Company use it to see if market
price of an asset tends to move towards
its 'real value' or 'intrinsic value'.

The Coca-Cola Company

Securities Exchange Commission and


Legalities
These Acts are reflecting the company, because
SEC shows how confident the company is. Coca
Cola filed the SEC and make it available on or
through the website certain reports and
amendments to those reports that they file with or
furnish to the Securities and Exchange Commission.
Its profitability, because customer knows that the
company is in under protection, so they feel
certainty drinking the beverage.

The Coca-Cola Company

Ending Company

Ending Price: $41.35 (as of


5/20)
The Coca-Cola Company

Whole Portfolio Analysis


Best investments
Disney: 18% Rise
Worst investments
Google: -7.07%
Ending Portfolio Balance
Total Gain: $6,433.11
What would the team do different?
Pay closer attention to rise and fall and act fast

The Coca-Cola Company

Investment Recommendations
-

We recommend that you buy the Coca Cola stock because


for years this stock has stayed up and it continues to grow
as time progresses.

Investing in a bond would be highly advised because


about a year ago, Coca Cola raised $5 billion in its biggest
bond offering ever.

Investors interested in investing in mutual funds for Coca


Cola should be pretty pleased because right now funds in
the company are doing really well.

The Coca-Cola Company

Investment Recommendations
Cont.
-

Investing in securities for Coca Cola is something that we


would recommend because the securities are held at fair
values.

The Coca-Cola Company

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