Coca-Cola Leads Market Despite Celsius' Revenue Drop

Coca-Cola continues to dominate the beverage market with $11.9B in Q3 revenue. Conversely, Celsius faces challenges with a 31% revenue decline. Investors should consider Coca-Cola's strong brand and dividend history versus Celsius' uncertain outlook.

Date: 16-01-2025

AI Rating: 6

Earnings Per Share (EPS): The report does not provide specific EPS figures for either Coca-Cola or Celsius, but it mentions strong earnings growth for Celsius with a projection of 15% annual growth rate in EPS from 2023 to 2026. This indicates a potential for increased profitability for Celsius, although it is currently navigating through challenges, and such uncertain conditions can affect investor confidence.

Revenue Growth: Coca-Cola reported a substantial revenue of $11.9 billion for Q3 2024, showcasing its continuous leadership in the beverage industry. In contrast, Celsius' revenue increased significantly in past years but faced a sharp 31% year-over-year decline in Q3 2024. This stark contrast suggests a solid performance for Coca-Cola while raising concerns regarding Celsius' operational efficiency moving forward.

Net Income and Profit Margins: The analysis highlights Coca-Cola's ability to maintain substantial profits, with operating margins exceeding 20%. However, there is no specific net income mentioned. Celsius, while previously experiencing explosive growth, may be struggling with profit margins due to declining sales and restructuring challenges.

Free Cash Flow (FCF): Coca-Cola’s free cash flow generation is mentioned as an estimated $9.2 billion for 2024, indicating a healthy financial position that supports its dividend policy. No specific FCF figures were provided for Celsius, but challenges in sales may hinder its ability to generate robust free cash flow in the near term.

Return on Equity (ROE): The report does not discuss ROE for either company, omitting this essential metric for assessing efficiency in generating returns from shareholders' equity.

Overall Assessment: Coca-Cola appears to be a stable investment option, backed by a powerful brand and a history of strong financial performance, while Celsius presents a riskier scenario that may either recover or decline further based on its current market challenges.

Stocks: KO CELH