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COKE Stock Risk & Deep Value Analysis

Coca-Cola Consolidated Inc

Consumer Defensive • Beverages - Non-Alcoholic

DVR Score

0.2

out of 10

Distressed

What You Need to Know About COKE Stock

We analyzed Coca-Cola Consolidated Inc using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran COKE through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.

Updated Apr 3, 2026Run Fresh Analysis →

COKE Risk Analysis & Red Flags

What Could Go Wrong

The primary risk for COKE is its reliance on the mature beverage market and its contractual relationship with The Coca-Cola Company. A sustained decline in demand for TCCC products or a significant change in the bottling agreement terms could severely impact revenue and profitability. InvestingPro's 'overvalued' assessment suggests current price already reflects positive aspects, limiting further upside without material growth drivers.

Risk Matrix

Overall

Moderate

Financial

Low

Market

Low

Competitive

Medium

Execution

Medium

Regulatory

Low

Red Flags

  • InvestingPro analysis indicates the stock is overvalued relative to fair value estimate.

  • Lack of explicit organic growth initiatives or market expansion beyond existing territories.

  • Dependence on a mature product portfolio and brand (The Coca-Cola Company).

Upcoming Risk Events

  • 📅

    Weaker-than-expected Q1 2026 earnings or guidance

  • 📅

    Significant shifts in consumer beverage preferences away from Coca-Cola products

  • 📅

    Increase in raw material costs (e.g., aluminum, sugar) impacting margins

When to Reconsider

  • 🚪

    Sustained quarter-over-quarter decline in reported revenues or net income.

  • 🚪

    Significant erosion of gross or operating margins without clear offsetting factors.

  • 🚪

    Any material negative changes in the bottling and distribution agreements with The Coca-Cola Company.

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What Does Coca-Cola Consolidated Inc (COKE) Do?

Market Cap

$12.37B

Sector

Consumer Defensive

Industry

Beverages - Non-Alcoholic

Employees

15,000

Coca-Cola Consolidated, Inc., together with its subsidiaries, manufactures, markets, and distributes nonalcoholic beverages primarily products of The Coca-Cola Company in the United States. It operates through Nonalcoholic Beverages and All Other segments. The company offers sparkling beverages; still beverages, including energy products; noncarbonated beverages, such as bottled water, ready to drink coffee and tea, enhanced water, juices, and sports drinks. It also sells its products to other Coca-Cola bottlers; and post-mix products that are dispensed through equipment, which mixes the fountain syrups with carbonated or still water enabling fountain retailers to sell finished products to consumers in cups or glasses. In addition, the company manufactures and distributes various other beverage brands comprising Dr Pepper and Monster Energy. It sells and distributes its products directly to customers, including grocery stores, mass merchandise stores, club stores, convenience stores and drug stores, restaurants, schools, amusement parks, and recreational facilities, as well as through vending machine outlets. The company was formerly known as Coca-Cola Bottling Co. Consolidated and changed its name to Coca-Cola Consolidated, Inc. in January 2019. Coca-Cola Consolidated, Inc. was founded in 1902 and is headquartered in Charlotte, North Carolina.

Visit Coca-Cola Consolidated Inc Website

Investment Thesis

Coca-Cola Consolidated offers a stable investment in a mature consumer staples sector, backed by reliable cash flows, a strong brand association through The Coca-Cola Company, and a disciplined approach to capital allocation evidenced by its recent $2.4 billion share repurchase. It provides steady, albeit incremental, returns rather than exponential growth.

Is COKE Stock Undervalued?

Coca-Cola Consolidated (COKE) remains a well-established bottler and distributor for The Coca-Cola Company, operating in a mature, stable industry. While recent financials like Q4 2025 EPS ($2.11) and Revenue ($1.90B) are reported, and the significant $2.4 billion repurchase of The Coca-Cola Company's equity stake enhances COKE's independence and capital structure, these actions do not fundamentally alter its core business model or growth trajectory towards 10x potential within 3-5 years. The company lacks disruptive technology, entry into massive untapped markets, or a revolutionary strategic pivot. Growth drivers are inherently incremental, linked to beverage consumption trends and operational efficiencies in established territories, rather than exponential market expansion or innovation, making it unsuitable for a high-risk, high-reward 10x growth profile.

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COKE Price Targets & Strategy

12-Month Target

$218.88

Bull Case

$229.00

Bear Case

$195.00

Valuation Basis

19x forward P/E applied to estimated FY2026 EPS of $11.52 (based on TTM EPS of $10.97 + 5% growth).

Entry Strategy

Consider accumulation on pullbacks towards the $195-$200 range, which aligns with potential minor support levels, otherwise, dollar-cost average into position given stable nature.

Exit Strategy

Take profit at $225-$230 (implied ~20x P/E on FY26 EPS); stop loss at $190 to protect against significant market downturns or unexpected negative news.

Portfolio Allocation

1-3% for conservative investors seeking stable, dividend-paying exposure; not recommended for aggressive growth portfolios.

Price Targets & Strategy

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Is COKE Financially Healthy?

Valuation

P/E Ratio

27.25

Profitability

Gross Margin

39.70%

Operating Margin

13.20%

Net Margin

7.90%

Balance Sheet

Current Ratio

1.26

Quick Ratio

0.97

Debt/Equity

0.88

Cash Flow

Operating Cash Flow

$931.90M

Other

Beta (Volatility)

0.60

Dividend Yield

0.50%

Does COKE Have a Competitive Moat?

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Moat Rating

🛡️ Narrow

Moat Trend

Stable

Moat Sources

3 Identified

Brand PowerEfficient ScaleCost Advantages

The moat is durable due to the long-standing, often exclusive, contractual relationships with The Coca-Cola Company for bottling and distribution, which are difficult for new entrants to replicate. The established distribution network further solidifies its position.

Moat Erosion Risks

  • Long-term decline in overall demand for carbonated soft drinks (CSDs).
  • Potential changes in the contractual terms with The Coca-Cola Company upon renewal.
  • Increased competition in the broader non-alcoholic beverage market from diversified players.

COKE Competitive Moat Analysis

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COKE Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral (Stock at all-time high suggests positive retail sentiment, but no specific data for sentiment drivers).

Institutional Sentiment

Neutral (No analyst consensus or upgrade/downgrade data provided).

Insider Activity (Form 4)

On November 7, 2025, Coca-Cola Consolidated repurchased all outstanding shares held by The Coca-Cola Company subsidiary for $2.4 billion. J. Frank Harrison III beneficially controls approximately 78% of total voting power through Class B shares.

Options Flow

Normal options activity (No specific unusual options activity or put/call ratio data available).

Earnings Intelligence

Next Earnings

2026-04-28

Surprise Probability

Medium

Historical Earnings Pattern

Unknown (No historical earnings reaction patterns provided in the research).

Key Metrics to Watch

Q1 2026 Revenue and EPS performanceManagement commentary on consumer demand trends and pricing powerUpdates on operational efficiencies and capital allocation

Competitive Position

Top Competitor

KDP (Keurig Dr Pepper) / PEP (PepsiCo)

Market Share Trend

Stable (Maintains strong market share within its exclusive bottling territories).

Valuation vs Peers

Trading at a premium based on InvestingPro's 'overvalued' assessment, likely due to consistent performance in a stable sector.

Competitive Advantages

  • Exclusive bottling and distribution rights from The Coca-Cola Company in its territories.
  • Extensive and efficient distribution network optimized for beverage delivery.
  • Strong brand association and customer loyalty tied to Coca-Cola products.

Market Intelligence

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What Could Drive COKE Stock Higher?

Near-Term (0-6 months)

  • Q1 2026 Earnings Report on 2026-04-28
  • Annual Shareholders Meeting on 2026-05-12

Medium-Term (6-18 months)

  • Continued operational efficiency improvements within existing distribution networks
  • Steady, incremental growth in beverage consumption within core markets

Long-Term (18+ months)

  • Increased focus on non-carbonated ready-to-drink (NARTD) beverages via TCCC portfolio
  • Potential for further capital returns to shareholders beyond dividends

Catalysts & Growth Drivers

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What's the Bull Case for COKE?

  • Consistent low single-digit revenue growth and stable EPS.

  • Maintenance or modest increase in dividend payouts.

  • No material adverse changes in the agreements with The Coca-Cola Company.

Bull Case Analysis

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Competing with COKE

See how Coca-Cola Consolidated Inc compares to related companies

CompanyMarket CapDVR ScoreP/ERevenueProfit MarginRev Growth

Coca-Cola Consolidated Inc

COKE

$12.4B0.227.3$7.2B7.9%0.0%

Costco Wholesale Corp

COST

0.7Compare →

Coca-Cola Co

KO

$324.9T0.43.1$47.9B27.3%1.9%Compare →

PepsiCo Inc

PEP

0.1Compare →

Procter & Gamble Co

PG

0.2Compare →

Walmart Inc

WMT

$1.0T0.747.4$713.2B3.1%4.7%Compare →

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FAQ

What is the DVR Score for Coca-Cola Consolidated Inc (COKE)?

As of April 3, 2026, Coca-Cola Consolidated Inc has a DVR Score of 0.2 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of Coca-Cola Consolidated Inc?

Coca-Cola Consolidated Inc's market capitalization is approximately $12.4B. The company operates in the Consumer Defensive sector within the Beverages - Non-Alcoholic industry.

What ticker symbol does Coca-Cola Consolidated Inc use?

COKE is the ticker symbol for Coca-Cola Consolidated Inc. The company trades on the NMS.

What is the risk level for COKE stock?

Our analysis rates Coca-Cola Consolidated Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of COKE?

Coca-Cola Consolidated Inc currently has a price-to-earnings (P/E) ratio of 27.3. This is in line with broader market averages.

Does Coca-Cola Consolidated Inc pay a dividend?

Yes, Coca-Cola Consolidated Inc pays a dividend with a current yield of approximately 0.50%.

Is Coca-Cola Consolidated Inc's revenue growing?

Coca-Cola Consolidated Inc has reported revenue growth of 0.0%. Revenue has been declining, which warrants closer examination.

Is COKE stock profitable?

Coca-Cola Consolidated Inc has a profit margin of 7.9%. The company is profitable but margins are modest.

How often is the COKE DVR analysis updated?

Our AI-powered analysis of Coca-Cola Consolidated Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 3, 2026.

Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for COKE (Coca-Cola Consolidated Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.

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