Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Selling beverages for more than 150 years, Coca-Cola (NASDAQ: KO) has seen many economic recessions. However, the company’s management is known to keep its free cash flow always flowing for such times. Going through the financial reports we see the brilliance of financial management of the firm.
The Financial Performance of Last Year
The company reported strong net revenues in the year 2022, growing 7% to $10.1 billion, with organic revenues growing 15% in the first quarter itself. This growth was driven by 12% growth in price/mix and 2% growth in concentrate sales. Contributing to the other 3 quarters, the net revenues grew by 11% to $43.0 billion. Meanwhile, organic revenues (Non-GAAP) grew by 16%.
The operating margin was 20.5% for the first quarter but later on escalated to 25.4% for the full year, compared to 17.7% in the prior year. Operating margin was impacted by the BODYARMOR acquisition, higher operating costs, and an increase in marketing investments, as the annual report states.
What did the equity holders make
In the last quarter, the earnings per share for investors decreased by 16% to $0.47, but the comparable earnings per share remained the same at $0.45. For the full year, the earnings per share went down by 3% to $2.19, but comparable earnings per share increased by 7% to $2.48. The company gained value share in total nonalcoholic ready-to-drink beverages, including share gains in both at-home and away-from-home channels.
The company made a Free Cash flow to the firm (FCFF) of $9.53B, which was a 15.3% decline compared to 2021.Strong business performance was offset by the deliberate buildup of inventory and cycling working capital benefits.
Technical Analysis and Prediction of the KO Stock Price
The current KO stock price is trading at $52.82, just near the support level of $52.31. The current trend is negative, while the immediate resistance is at $56. The 50-day EMA price is $57.5 and the 150-day EMA stock price is at $59.6 indicating a sudden drop.
The KO stock price prediction will be bearish if the trend continues. However, as the RSI has come above the oversold line of 30, the bulls will likely make a higher low above the level of $56 which may reverse the trend.
Conclusion
Coca-Cola (NASDAQ: KO) is managing its finances pretty well while keeping the optimum amount of cash for dividends. The KO stock price has given a lower return in 5 years as compared to the market. The current trend is negative and the prediction will be bullish only if the stock makes it up to a certain level.
Technical Levels
Resistance Levels: $56, and $59
Support Levels: $52, and $48
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/13/ko-stock-price-analysis-recent-fundamental-and-technical-outlook/