Investment Thesis
Coca-Cola Consolidated faces critical structural insolvency with negative stockholders' equity of -$643.5M, indicating liabilities exceed assets by over $600M. Despite positive revenue growth (+4.8% YoY) and operating cash flow, the company's declining net profitability (-9.9% YoY), high debt burden ($2.6B), and weakening quick ratio (0.91x) indicate deteriorating financial health and elevated default risk.
Strengths
- Positive operating cash flow of $205.3M demonstrates operational liquidity generation
- Revenue growth of 4.8% YoY shows market demand and top-line resilience
- Reasonable gross margin of 39.4% indicates pricing power in core beverage bottling business
Risks
- Negative stockholders' equity of -$643.5M indicates technical insolvency and liabilities exceeding assets
- Net income declining 9.9% YoY despite revenue growth signals deteriorating profitability and margin compression
- Quick ratio of 0.91x below 1.0 suggests potential liquidity stress and inability to meet short-term obligations without inventory liquidation
Key Metrics to Watch
- Stockholders' equity trajectory - critical to monitor for continued deterioration or recovery
- Interest coverage ratio - not currently calculable but essential given $2.6B debt load
- Operating cash flow sustainability - primary lifeline given negative equity position
Financial Metrics
Revenue
1.8B
Net Income
111.6M
EPS (Diluted)
$1.21
Free Cash Flow
142.2M
Total Assets
4.4B
Cash
232.9M
Profitability Ratios
Gross Margin
39.4%
Operating Margin
12.9%
Net Margin
6.0%
ROE
N/A
ROA
2.5%
FCF Margin
7.7%
Balance Sheet & Liquidity
Current Ratio
1.23x
Quick Ratio
0.91x
Debt/Equity
N/A
Debt/Assets
114.6%
Interest Coverage
N/A
Long-term Debt
2.6B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-07T07:01:32.258145 |
Data as of: 2026-04-03 |
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