investorscraft@gmail.com

Intrinsic Value of Coca-Cola Europacific Partners PLC (CCEP)

Previous Close$95.49
Intrinsic Value
Upside potential
Previous Close
$95.49

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2024 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

Coca-Cola Europacific Partners PLC (CCEP) operates as a leading bottler and distributor within the global non-alcoholic ready-to-drink beverage industry, primarily serving Europe and the Asia-Pacific region. The company’s revenue model hinges on manufacturing, distributing, and marketing Coca-Cola brands, alongside other proprietary and licensed beverages, through an extensive supply chain network. CCEP’s product portfolio spans carbonated soft drinks, juices, waters, and energy drinks, catering to diverse consumer preferences and reinforcing its role as a critical partner in The Coca-Cola Company’s franchise system. Within the competitive beverage sector, CCEP distinguishes itself through operational scale, geographic diversification, and a focus on sustainability initiatives, including packaging innovation and reduced carbon footprint. Its market position is further strengthened by long-term contracts with Coca-Cola, ensuring stable demand and pricing power. The company’s strategic acquisitions, such as the merger with Coca-Cola Amatil, have expanded its footprint in high-growth markets, solidifying its position as a key player in the global beverage value chain.

Revenue Profitability And Efficiency

CCEP reported revenue of $20.4 billion for the period, with net income of $1.4 billion, reflecting a net margin of approximately 6.9%. The company’s diluted EPS stood at $3.08, demonstrating steady profitability. Operating cash flow was robust at $3.1 billion, though capital expenditures of $791 million indicate ongoing investments in production capacity and efficiency improvements. These metrics underscore CCEP’s ability to convert revenue into cash while maintaining operational discipline.

Earnings Power And Capital Efficiency

The company’s earnings power is supported by its asset-light model and strong brand partnerships, enabling high returns on invested capital. CCEP’s focus on cost optimization and supply chain efficiency contributes to stable margins, even amid inflationary pressures. Its capital allocation strategy prioritizes growth investments, shareholder returns, and debt management, balancing short-term performance with long-term value creation.

Balance Sheet And Financial Health

CCEP’s balance sheet shows $1.6 billion in cash and equivalents against total debt of $11.3 billion, indicating a leveraged but manageable position. The company’s debt levels are typical for capital-intensive bottlers, and its strong cash flow generation provides ample coverage for interest obligations. Liquidity remains sufficient to support operations and strategic initiatives, though refinancing risks in a rising rate environment warrant monitoring.

Growth Trends And Dividend Policy

CCEP has demonstrated consistent growth through geographic expansion and portfolio diversification, with a focus on premium and healthier beverage options. The company’s dividend policy is shareholder-friendly, with a dividend per share of $1.98, reflecting a commitment to returning capital. Future growth may hinge on market penetration in emerging regions and innovation in low- or no-sugar product lines, aligning with shifting consumer preferences.

Valuation And Market Expectations

The market values CEP as a stable, cash-generative business with moderate growth prospects. Its valuation multiples reflect investor confidence in its resilient revenue streams and strategic alignment with Coca-Cola’s global system. However, expectations are tempered by macroeconomic headwinds and competitive pressures in the beverage industry, which could impact margin expansion and top-line growth.

Strategic Advantages And Outlook

CCEP’s strategic advantages include its entrenched position in Coca-Cola’s ecosystem, scale efficiencies, and diversified geographic footprint. The outlook remains positive, driven by demand for branded beverages and sustainability-driven operational improvements. Risks include commodity price volatility and regulatory changes, but the company’s adaptive supply chain and innovation pipeline position it well for long-term resilience.

Sources

Company filings, investor presentations

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049

INCOME STATEMENT

Revenue growth rate, %NaN
Revenue, $NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $mNaN
Operating income, $mNaN
EBITDA, $mNaN
Interest expense (income), $mNaN
Earnings before tax, $mNaN
Tax expense, $mNaN
Net income, $mNaN

BALANCE SHEET

Cash and short-term investments, $mNaN
Total assets, $mNaN
Adjusted assets (=assets-cash), $mNaN
Average production assets, $mNaN
Working capital, $mNaN
Total debt, $mNaN
Total liabilities, $mNaN
Total equity, $mNaN
Debt-to-equity ratioNaN
Adjusted equity ratioNaN

CASH FLOW

Net income, $mNaN
Depreciation, amort., depletion, $mNaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $mNaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $mNaN
Free cash flow, $mNaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $mNaN
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
HomeMenuAccount