Coca-Cola Europacific Partners (CCEP) Analysis

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] Coca-Cola Europacific Partners PLC (CCEP) 3-Minute Overview ### 🎯 Layer 1: 30-Second Key Takeaways > **💡 One-Sentence Summary** > > Simply put, CCEP is the giant bottling and distribution partner behind Coca-Cola products across Europe and Asia-Pacific—a steady consumer staples business that makes money from scale, brand power, and everyday drink demand. > **📍 Basic Profile** > > Market Cap **$42.4 billion** · Beverages · NASDAQ NMS - GLOBAL MARKET · Price **$94.57** > **⚡ 3 Things You Should Know** > > 1. 💰 Reliable cash machine: This is not a flashy growth story, but it is a very solid operator with **24.48% ROE**, **9.44% net margin**, and positive cash generation—basically, it turns a mature soda business into dependable shareholder returns. > > 2. 📈 Growth is better than you might expect for a defensive stock: Revenue has compounded at about **13% over 3 years** and **9% over 5 years**, which suggests this is more than just a sleepy dividend name; the business has been expanding through pricing, execution, and geographic breadth. > > 3. ⚠️ Balance sheet is fine, but not ultra-conservative: Liquidity is a bit tight with a **0.80 current ratio** and debt-to-equity of **1.36**, so while interest coverage is healthy, this is still a business that relies on stable cash flow rather than a fortress cash position. > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Medium✋ | Net margin 9.44%, solid but not elite for a branded beverage operator | > | Growth Rate | Steady📈 | Revenue growth 12.96% (3Y basis) | > | Financial Health | Moderate💛 | Debt-to-equity 136.49%, but interest coverage 13.91x | > | Valuation | Fair | PE 18.52x | --- ### 📋 Layer 2: 2-Minute Deep Dive #### 📊 How Does This Company Make Money? **Business Model in One Sentence:** CCEP bottles, distributes, and sells Coca-Cola and related beverages to retailers, restaurants, and other channels, making money through high-volume beverage sales across a broad geographic network. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Bottling & distribution of Coca-Cola beverages | [Data unavailable] | ↑ | Core business benefits from scale, route density, and strong global brands | | Other beverage portfolio / regional mix | [Data unavailable] | → | Geographic diversification helps smooth demand, but segment split was not provided | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | 36.29% | Average | Decent pricing power, though this is still a physical distribution business rather than an ultra-high-margin brand owner | | Net Margin | 9.44% | Average | Healthy enough for a staples distributor-bottler, showing disciplined operations | | ROE | 24.48% | Excellent>20% | Strong shareholder return, though leverage likely helps lift this figure | --- #### 📈 How's the Growth? **Growth Assessment:** **Steady Growth** | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | 12.96% (3Y CAGR) | [Data unavailable] | Stable | | Profit Growth | 8.96% (3Y EPS growth) | [Data unavailable] | Stable | **Growth Quality:** > What's interesting is that growth looks reasonably balanced rather than purely financial engineering. Revenue growth outpaced EPS growth over 3 years, which may mean cost pressures or reinvestment are absorbing some upside, but it also suggests the top line is genuinely moving. For a beverage bottler, that usually points to a mix of pricing, volume resilience, and geographic execution rather than hype-driven growth. --- #### 💰 Financial Health Check **One Sentence:** Think of it like a household with a stable paycheck and manageable mortgage—not swimming in cash, but financially comfortable as long as income stays steady. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | 136.49% (debt-to-equity) | <60% safe | ⚠️High | | Current Ratio | 0.80 | >1.5 healthy | ⚠️Tight | | Cash Flow | $5.86/share | >0 | ✅Positive | **Worth noting:** CCEP's leverage looks high on paper, but **13.91x interest coverage** says debt is currently serviceable. In other words, this is not a distress story—but if consumer demand weakens sharply or input costs spike, the balance sheet gives it less flexibility than a cash-rich consumer giant. --- #### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: $84.66 - 52-Week High: $110.90 - Current: $94.57, **In the middle** | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | | ●(37.8% position) | | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE 18.52x | [Data unavailable] | [Data unavailable] | | vs Peers | PE 18.52x | [Data unavailable] | [Data unavailable] | **What the Current Valuation is Betting On:** > Basically, the market is treating CCEP like a quality defensive compounder—not a bargain-bin stock, but not a hype name either. At around **18.5x earnings**, investors seem to be betting that steady beverage demand, disciplined pricing, and continued cash returns can keep earnings growing in the high-single-digit range without major surprises. --- #### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-04-28 | Q1 2026 sales/trading call released | Neutral to Positive — suggests the market is focused on current operating momentum and execution | | 2026-04-30 | Updated ESG plan, added Philippines and new 2030 sustainability targets | Neutral — strategically helpful for long-term positioning, though unlikely to move near-term earnings much | | 2026-04-29 | UBS raised target price to $109 and kept Buy | Positive — shows analysts still see upside despite a defensive stock profile | | 2026-04-29 | Barclays raised target price to $108 and kept Overweight | Positive — reinforces confidence in earnings durability and valuation support | --- ### 📊 Layer 3: Want More? 3-Minute Complete Analysis #### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | 36.29% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | 9.44% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | ROE | 24.48% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | 12.96% (3Y CAGR) | [Data unavailable] | [Data unavailable] | ↑ | | Profit Growth | 8.96% (3Y EPS growth) | [Data unavailable] | [Data unavailable] | ↑ | | EPS Growth | 8.96% (3Y CAGR) | [Data unavailable] | [Data unavailable] | ↑ | --- #### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | 2018-12-31 | $0.55 | $0.54 | -1.01% Miss 😟 | | 2018-09-30 | $0.77 | $0.76 | -0.74% Miss 😟 | | 2018-06-30 | $0.67 | $0.67 | +0.50% Beat 😀 | | 2018-03-31 | $0.33 | $0.33 | +0.82% Beat 😀 | **Earnings Trend Interpretation:** The available earnings surprise data is quite old and not enough to judge current execution. What it does show is a pattern of very small beats and misses rather than big shocks, which fits the profile of a stable consumer staples business. --- #### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 15 firms | 68.2% | | Hold | 5 firms | 22.7% | | Sell | 2 firms | 9.1% | **Target Price:** $108 ~ $109 (visible recent targets) **vs Current Price:** roughly **14% to 15% upside** **Insider Activity:** Net **buying** of approximately **182,088 shares** in past 3 months > What you might care about is that insider buying usually signals confidence, especially when it happens across multiple executives. That said, the data does not include dollar values or transaction codes, so treat it as a positive signal, not definitive proof. --- #### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Balance Sheet Flexibility:** Debt-to-equity is elevated and liquidity ratios are below ideal → If operating conditions worsen, CCEP has less room than a cash-heavy rival. 2. **Consumer Demand / Pricing Risk:** Beverage growth often relies on pricing staying ahead of cost pressure → If consumers trade down or volumes soften, margin expansion could stall. 3. **Execution Across Regions:** CCEP operates across multiple markets, including Europe and Asia-Pacific → If currency, regulation, or local demand shifts go the wrong way, reported growth can get choppy. --- ### 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** CCEP is a large-scale Coca-Cola bottling and distribution company with a defensive consumer staples profile and broad international reach. > > **Key strength:** Its biggest advantage is dependable cash generation from a globally recognized beverage system, backed by solid returns on equity and steadier-than-expected growth. > > **Key risk:** The main thing to watch is that leverage and liquidity are only moderate, so the story works best if operating stability continues. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? Want to calculate if it's worth the bet? → Try【Musk Mode】for analysis