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KO

9/9 Score

The Coca-Cola Company

Analysis Date: February 21, 2026

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Dasani, dogadan, FUZE TEA, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, and Minute Maid Pulpy brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 44.4%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 13.0%

  • Cash Machine

    FCF / Assets > 5%

    Value: 5.1%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 3.8%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.1%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 61.6%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Consumer Defensive

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 1.41x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 68.9%

Analysis Summary

Coca-Cola displays a robust moat and a business that consistently returns capital to shareholders, evident in its impressive ROE and ROIC. While the valuation isn't screaming bargain, it offers a fair price for a predictable earnings stream. This company runs like a finely tuned machine, a quality I appreciate in my long-term holdings.

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