Coca-Cola Consolidated, Inc.
COKE
$188.80
-0.12%
Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, responsible for the distribution, marketing, and manufacturing of nonalcoholic beverages, including sparkling and still drinks such as Coca-Cola, bottled water, teas, coffees, and sports drinks. As a key franchise bottler for The Coca-Cola Company, it holds a dominant position in its territories, leveraging its scale and logistics network to serve a vast consumer base. The company is currently in focus due to its strong revenue growth, driven by both volume and pricing, and its strategic initiatives to expand margins and optimize its portfolio. Investors are also monitoring its capital allocation, including share repurchases and dividends, as well as the impact of changing consumer preferences and input costs on its profitability.…
COKE
Coca-Cola Consolidated, Inc.
$188.80
Investment Opinion: Should I buy COKE Today?
Rating: Hold. COKE's strong revenue growth and margin expansion are offset by limited analyst coverage and financial leverage concerns. The stock is trading at $189.33, with no analyst target price available, making it difficult to assess upside potential. The forward PE of 4.86x suggests undervaluation if earnings estimates are accurate, but the lack of consensus estimates raises doubts about their reliability.
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COKE 12-Month Price Forecast
The AI model assesses COKE as neutral with medium confidence. The company's strong revenue growth and low forward PE suggest potential upside, but the lack of analyst coverage and negative ROE introduce significant uncertainty. The stock's recent volatility and high trailing PE warrant caution. The stance would upgrade to bullish if revenue growth accelerates above 20% and analyst coverage increases, or downgrade to bearish if earnings estimates are revised downward significantly.
Wall Street consensus
Analyst coverage on COKE is extremely limited, with only 1 analyst providing estimates, and the consensus recommendation is 'none' due to insufficient data. The average estimated revenue for the current year is $7.228 billion, but no EPS estimates or target prices are available. This lack of coverage suggests that COKE is a small-cap or mid-cap stock with limited institutional interest, which can lead to higher volatility and less efficient price discovery. Investors should be cautious and conduct thorough due diligence, as the absence of analyst targets means there is no consensus view to guide expectations.
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Bulls vs Bears: COKE Investment Factors
COKE presents a mixed picture: strong revenue growth and margin expansion are offset by limited analyst coverage, negative ROE, and a high trailing PE. The bull case is supported by accelerating revenue growth and a low forward PE, while the bear case highlights financial leverage and valuation concerns. Currently, the bull case has slightly stronger evidence due to the company's proven ability to grow revenue and maintain margins, but the lack of analyst consensus and negative ROE introduce significant uncertainty. The key tension is whether the forward PE of 4.86x reflects genuine earnings growth potential or is a red flag for unsustainable earnings quality.
Bullish
- Strong Revenue Growth Acceleration: Q1 2026 revenue grew 16.88% YoY to $1.846B, accelerating from 8.4% growth in Q1 2025, driven by both volume and pricing. This indicates robust demand and successful execution of pricing strategies.
- High Gross Margin Expansion: Gross margin improved to 39.37% in Q1 2026 from 39.69% in Q1 2025, reflecting effective cost management and favorable product mix. The company has maintained gross margins above 39% for the past five quarters.
- Significant EPS Growth Expected: Forward PE of 4.86x implies the market expects a massive earnings jump, with analysts forecasting EPS to rise from $1.97 in Q1 2026 to over $38 annually. This suggests strong operational leverage and potential one-time gains.
- Strong Relative Performance: COKE outperformed the S&P 500 by 40.04 percentage points over the past year, with a 58.69% gain versus 18.65% for the index. This demonstrates strong investor confidence and momentum.
Bearish
- Extremely Limited Analyst Coverage: Only 1 analyst covers COKE, with no consensus recommendation or EPS estimates. This lack of coverage leads to inefficient price discovery and higher information risk for investors.
- Negative Return on Equity: ROE is -77.13%, indicating that the company is generating losses relative to shareholders' equity. This is partly due to a negative debt-to-equity ratio of -4.06, suggesting significant share buybacks and debt, which can be risky.
- High Valuation on Trailing Earnings: Trailing PE of 19.78x is above the sector average, and the PEG ratio of 1.87 suggests the stock is overvalued relative to its growth rate. The market is pricing in high future growth, which may not materialize.
- Recent Price Volatility: The stock fell 24.66% from its 52-week high of $219.65 to a low of $165.43 in May 2026, indicating high volatility. The recent 4.09% drop on September 4, 2026, shows continued downside risk.
COKE Technical Analysis
COKE has demonstrated a robust long-term uptrend, with the stock price appreciating 58.69% over the past year, significantly outperforming the S&P 500's 18.65% gain. Currently trading at $189.33, the stock is positioned at 68.5% of its 52-week range (between $110.60 low and $219.65 high), indicating it remains in the upper half of its yearly range, though off the highs. This suggests the stock has experienced a strong rally but has recently pulled back, potentially offering a more attractive entry point for investors who believe in the company's fundamentals.
Beta
0.55
0.55x market volatility
Max Drawdown
-24.7%
Largest decline past year
52-Week Range
$111-$220
Price range past year
Annual Return
+55.5%
Cumulative gain past year
| Period | COKE Return | S&P 500 |
|---|---|---|
| 1m | +3.9% | -1.6% |
| 3m | +0.5% | +2.2% |
| 6m | -13.0% | +14.4% |
| 1y | +55.5% | +16.2% |
| ytd | +26.0% | +11.1% |
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COKE Fundamental Analysis
COKE's revenue trajectory is robust, with the most recent quarter (Q1 2026) reporting revenue of $1.846 billion, a 16.88% year-over-year increase, accelerating from the 8.4% growth seen in Q1 2025. The company's nonalcoholic beverage segment, which generated $1.834 billion in revenue, is the primary growth driver, benefiting from both volume and pricing initiatives. This consistent growth underscores the company's ability to execute in a competitive beverage market, though investors should monitor whether this pace is sustainable given potential shifts in consumer demand.
Quarterly Revenue
$1.8B
2026-04
Revenue YoY Growth
+16.9%
YoY Comparison
Gross Margin
39.4%
Latest Quarter
Free Cash Flow
$662108000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is COKE Overvalued?
Given that COKE is profitable, the price-to-earnings (PE) ratio is the primary valuation metric. The trailing PE stands at 19.78x, while the forward PE is significantly lower at 4.86x, implying the market expects a substantial increase in earnings per share. This gap suggests that analysts anticipate a major earnings jump, possibly due to one-time items or a significant improvement in operational efficiency. The forward PE of 4.86x appears unusually low, which may indicate that consensus estimates are overly optimistic or that the market is pricing in a decline in earnings quality.
PE
19.8x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 8x~29x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a negative debt-to-equity ratio of -4.06, indicating that the company has more debt than equity, which can amplify losses and increase financial distress risk. The negative ROE of -77.13% suggests that the company is not generating sufficient returns on shareholders' equity, possibly due to high leverage or one-time charges. Additionally, the payout ratio of 15.19% and dividend yield of 0.77% are low, but the company's aggressive share repurchases may be reducing equity base, increasing financial risk. The interest expense of $32M in Q1 2026 is manageable, but rising interest rates could pressure profitability.
FAQ
Key risks include financial leverage (debt-to-equity of -4.06), negative ROE of -77.13%, and limited analyst coverage leading to information asymmetry. Additionally, the stock's high volatility (max drawdown of -24.66%) and dependence on consumer preferences for beverages pose risks. The most severe risk is if the forward PE of 4.86x is based on overly optimistic earnings estimates, leading to a significant de-rating.
The 12-month forecast is uncertain due to limited analyst coverage. In the base case (50% probability), the stock is expected to trade between $180 and $220. In the bull case (30% probability), it could reach $220-$250, while in the bear case (20% probability), it might fall to $140-$180. The most likely scenario is the base case, assuming revenue growth continues at a moderate pace and margins remain stable.
COKE's trailing PE of 19.78x is higher than the sector average, suggesting it is not cheap on historical earnings. However, the forward PE of 4.86x implies the market expects a massive earnings increase, which could indicate undervaluation if those estimates are realistic. The PEG ratio of 1.87 suggests the stock is overvalued relative to its growth rate. Overall, the valuation is ambiguous, and the market is pricing in significant future growth, which may or may not materialize.
COKE presents a mixed risk/reward profile. The stock has strong revenue growth and a low forward PE, but the lack of analyst coverage and negative ROE are concerning. With no analyst target price, the upside is uncertain. For investors with a high risk tolerance who believe in the company's growth story, COKE could be a good buy, but for conservative investors, the lack of consensus estimates and financial leverage may be a deterrent. It is essential to monitor upcoming earnings and any changes in analyst coverage.
COKE is more suitable for long-term investment due to its defensive nature (beta of 0.547) and consistent revenue growth. The stock has shown strong long-term appreciation (58.69% over the past year), but short-term volatility is high. Investors should consider a minimum holding period of 3-5 years to ride out market fluctuations and benefit from the company's growth trajectory. Short-term trading is possible but risky given the lack of analyst guidance.