Coca-Cola FEMSA: It's Time To Buy The Bottler
Coca-Cola is boring but arguably the world's most reliable business. Its durability shows in the hefty valuation that investors are willing to pay.
Coca-Cola has one of the most recognizable brands in the world, and it has tremendous pricing power. Growth is slow but steady, and management raised full-year guidance after the first quarter.
Nike's sales growth stalled out over the past year. Coca-Cola continues to flourish in a challenging market.
Within this analysis, you will find a rationale for KO's attractiveness supported by a series of comparisons between the Enterprise and some of its competitors (incl. PEP and KDP). Coca-Cola's stock price has increased ~21.5% since its crash in the second half of 2023. Its EV/EBITDA multiple is significantly higher than its competitors. However, I believe the Company has deserved its valuation.
Coca-Cola's annual return of 6.3% since 2004 lags behind the S&P 500, but recent strategic shifts have led to a 9% return. The company's focus on digital innovation, global market expansion, and strong pricing power make it a solid choice for steady returns. Despite underperformance compared to the S&P 500, Coca-Cola's strong balance sheet, dividend growth streak, and innovative strategy position it well for the future.
Coca-Cola stock has generated a total return of 10% in 2024. The company pays a higher-than-average dividend yield of 3%.
Coca-Cola (KO) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Coca-Cola is a dividend king and has raised its dividend annually for 62 years. It typically yields around double the S&P 500 average.
Investors have been drawn to companies conducting forward-stock splits. Including stock dividends, Coca-Cola's shareholders have enjoyed 11 stock-split events since the company went public 105 years ago.
The latest trading day saw Coca-Cola (KO) settling at $63.84, representing a -0.2% change from its previous close.
This year is shaping up to be quite interesting, with the Federal Reserve's mixed signals on interest rates. Savvy investors look towards high-quality dividend kings to buy for additional income and stability.