Coca-Cola Consolidated Inc (COKE, Financial), a key player in the non-alcoholic beverage industry, is currently trading at $710.3 with a market cap of $6.66 billion. The company's stock price has seen a gain of 13.82% today and an impressive 11.71% over the past four weeks. This article will delve into the company's financial performance and future potential, as indicated by its GF Score of 82/100, which suggests good outperformance potential.
GF Score Analysis
The GF Score is a comprehensive ranking system developed by GuruFocus that evaluates a company's financial performance across five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally indicates a higher potential for returns. With a GF Score of 82/100, COKE is positioned well for future performance.
Financial Strength Analysis
COKE's Financial Strength rank is 7/10, indicating a robust financial situation. The company's interest coverage is 35.77, suggesting it can comfortably meet its interest obligations. Its debt to revenue ratio is 0.12, indicating a manageable debt burden. Furthermore, its Altman Z score of 4.21 suggests a low probability of bankruptcy.
Profitability Rank Analysis
COKE's Profitability Rank is 8/10, indicating a high level of profitability. The company's operating margin is 11.25%, and its Piotroski F-Score is 9, suggesting a healthy financial situation. The company has also demonstrated consistent profitability over the past 10 years.
Growth Rank Analysis
With a Growth Rank of 10/10, COKE has shown strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 10.40%, and its 3-year revenue growth rate is 8.80%. Its 5-year EBITDA growth rate is an impressive 29.30%, indicating robust operational growth.
GF Value Rank Analysis
COKE's GF Value Rank is 1/10, suggesting that the stock is currently overvalued. However, investors should consider the company's strong financial performance and growth potential when evaluating its valuation.
Momentum Rank Analysis
The company's Momentum Rank is 6/10, indicating a moderate momentum in its stock price. This suggests that the stock could continue to perform well in the near future.
COKE's main competitors in the non-alcoholic beverage industry include National Beverage Corp (FIZZ, Financial) with a GF Score of 83, Golden Ally Lifetech Group Inc (AQPW, Financial) with a GF Score of 36, and The Vita Coco Co Inc (COCO, Financial) with a GF Score of 29. Despite the intense competition, COKE's strong GF Score of 82 indicates its competitive strength in the industry.
In conclusion, Coca-Cola Consolidated Inc (COKE, Financial) demonstrates strong financial performance and growth potential, making it a compelling choice for investors. However, its current valuation suggests that the stock may be overpriced, and investors should exercise caution.