$Coca-Cola Europacific (CCEP.US)$The British company, which ...

In the past 5 years, revenue has increased for 4 years except 2020. In particular, in the past 2 years, it has grown by more than 20%, with an average growth rate of 9.4%, an average growth rate of 12% in operating profit, and an average growth rate of 17.2% in net profit. Interest expenses account for 6% of operating profit in 2022, and the interest burden is reasonable. Gross margin declined from 38.7% to 35.9% in the past 5 years, and the return on net assets surged to 20.8% in 2022.

In the first half of 2023, revenue increased 8.4%, operating profit increased 21%, and net profit increased 28%.

The balance ratio increased from 64% to 74.6% over the past 5 years, and goodwill increased sharply from $10.931 billion to $17.262 billion in 2021, indicating that major acquisitions have taken place, which explains the super-rapid growth since 2021.

Cash is growing rapidly, and the ratio and growth rate of accounts receivable and inventory is quite reasonable. Goodwill and other intangible assets are 2.2 times net assets, and long-term loans of 8.81 billion yuan are 1.1 times the net assets of 7.76 billion, and the leverage ratio is very high. The share capital has not changed in the last 5 years.

Currently, the current ratio is 0.85, and the quick ratio is 0.57. Cash flow is tight.

Even though huge investments were made in 2021, the cumulative net cash flow from operating over the past 5 years still exceeded net investment, generating a small shareholder surplus.

Currently, the price-earnings ratio is 19.6 and the price-earnings ratio is TTM 17.4. If net profit increases by 28% for the whole year, the price-earnings ratio will drop to 15.3, the dividend ratio will drop to 2.8%, and dividends will grow more steadily. Considering that the risk of recent acquisitions has not been released (maybe there is no risk), you can choose carefully (⭐️)