Coca-Cola Case Study

KO PEP DPS

Market Cap: 145.05B 100.22B 8.40B

Employees: 139,600 294,000 19,000

Qtrly Rev Growth (yoy): 39.70% 36.50% 4.10%

Revenue (ttm): 35.12B 57.84B 5.64B

Gross Margin (ttm): 63.86% 54.74% 60.20%

EBITDA (ttm): 10.45B 11.83B 1.23B

Operating Margin (ttm): 25.65% 16.42% 18.19%

Net Income (ttm): 11.81B 6.31B 528.00M

EPS (ttm): 5.06 3.92 2.18

P/E (ttm): 12.49 16.13 17.23

PEG (5 yr expected): 1.92 1.68 1.41

P/S (ttm): 4.18 1.76 1.5

A company like Coca-Cola has many internal and external strengths, but when launching a product of this sort, they begin to run into many internal and external weaknesses as well. As far as internal strengths go, Coca-Cola itself is a strong company to say the least. Not only are they a $23 billion company, but in 200 nations, Coke sells about 400 drink brands, including four of the top five sellers right now. They own 36% of the largest Coke bottler in the world, Coca-Cola Enterprises, which staffs facilities all over the world.

Although Coke has never produced an organic product, they do own Odwalla, which is a natural juice company. This product would not be marketed as an Odwalla brand, but Odwalla's knowledge of natural juice making will be a great strength for Coca-Cola.

Organic products are on the rise, with 70% of Americans having purchased something organic at least once. While organics are becoming more and more popular,

Growth Est KO PEP DPS

Current Qtr. 8.70% -2.60% 17.50%

Next Qtr. 10.40% 10.90% 9.50%

This Year 11.20% 8.50% 14.60%

Next Year 10.10% 9.40% 8.70%

Past 5 Years (per annum) 10.15% 8.96% 14.47%

Next 5 Years (per annum) 8.80% 8.60% 9.80%

Price/Earnings (avg. for comparison categories) 16.91 14.43 13.81

PEG Ratio (avg. for comparison categories) 1.92 1.68 1.41

KO PEP DPS

Market Cap: 145.05B 100.22B 8.40B

Employees: 139,600 294,000 19,000

Qtrly Rev Growth (yoy): 39.70% 36.50% 4.10%

Revenue (ttm): 35.12B 57.84B 5.64B

Gross