CCE  Coca-cola Enterprises Inc.

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Beverages (Production/Distribution)

Market Cap.

16.81B

Vuru Grade

49.28/100

Current Price

$34.95
-0.65 (-1.83%)

Growth Price

$18.54
Overvalued by 46.94%

Stability Price

$23.07
Overvalued by 33.99%

Company Metrics

  • P/E 25.77
  • P/S 1.29
  • P/B 2.48
  • EPS 1.36
  • Cash ROIC 9.42%
  • Cash Ratio 0.08
  • Dividend 1.07 / 3.42%
  • Avg. Vol. 1.81M
  • Shares 235.00M
  • Market Cap. 16.81B

Company Description

Coca-Cola Enterprises Inc. produces, distributes, and markets non-alcoholic beverages in Europe. It provides a range of beverage categories, including energy drinks, still and sparkling waters, juices, sports drinks, fruit drinks, coffee-based beverages, and teas. The company primarily offers its products under Coca-Cola, Diet Coke/Coke light, Fanta, Coca-Cola Zero, Capri Sun, Schweppes, Sprite, C... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) Upgraded To Strong Buy
Stock Market Daily (blog) - Jan 26, 2017
Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) have been upgraded from Buy to a Strong Buy rating by S&P Capital IQ analysts Jia Man Neoh and Agnese.
Coca-Cola European Partners Plc (CCE)
Yahoo Finance - Jun 22, 2005
Categories: Yahoo Finance Get free summary analysis Our analysis is based on comparing Coca-Cola European Partners Plc with the following peers - Coca-Cola Company, PepsiCo, Inc., Dr Pepper Snapple Group, Inc., Fomento Economico Mexicano SAB ...
Microsoft Corporation (NASDAQ:MSFT) & Coca-Cola European Partners plc Ordinary ...
Money News - Jan 20, 2017
On Thursday, Shares of Microsoft Corporation (NASDAQ:MSFT) lost -0.32% to $62.30. The share price is trading in a range of $69.19 - 62.98.
Coca-Cola European Partners: Notification of Major Interest in Shares
Business Wire (press release) - Dec 28, 2016
The Coca-Cola Company has consolidated its interests in 87,950,640 ordinary shares (corresponding to 18.21% of the voting rights in Coca-Cola European Partners PLC), which were previously held by three of its wholly-owned subsidiaries (European ...
Trend Analysis Report -Coca-Cola European Partners plc Ordinary Shares (NYSE ...
Daily News Journal (press release) - Feb 21, 2017
Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) traded 1,090,156 shares on last trading session with closing price of $35.40.
Coca-Cola European Partners Has Limited Near-Term Upside
Benzinga - Oct 10, 2016
Goldman Sachs' Judy Hong believes that while the long-term story for Coca-Cola European Partners plc Ordinary Shares (NYSE: CCE) remains intact, there is limited near-term upside to the synergies from the CCE/CCEAG/CCIP merger, while FX continues ...
Marriott International Inc (NASDAQ:MAR) & Coca-Cola European Partners plc ...
Money News - Jan 23, 2017
On Friday, Shares of Marriott International Inc (NASDAQ:MAR) lost -0.18% to $84.38. The share price is trading in a range of $84.16 - 85.76.
Is Coca-Cola European Partners plc Ordinary Shares (CCE) A Good Stock To Buy?
Insider Monkey (blog) - Nov 25, 2016
In this article we are going to look at how this recent market trend affected the sentiment of hedge funds towards Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE), and what that likely means for the prospects of the company and its stock.
Coca-Cola Enterprises, Inc. Announces Approval of Prospectus Prepared by Coca ...
Business Wire (press release) - May 25, 2016
... Inc. (NYSE: CCE)(Euronext Paris: CCE) announced today the UK Listing Authority has approved a prospectus prepared by Coca-Cola European Partners plc in connection with the application for the admission of its entire €0.01 ordinary share capital to ...
Coca-Cola European Partners Plc Admission to Listing and Trading
Business Wire (press release) - Jun 2, 2016
Investors should not purchase or subscribe for any shares referred to in this announcement except on the basis of information in the prospectus published by Coca-Cola European Partners plc (the Company) on 25 May 2016 (the Prospectus). ... the Company ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CCE to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CCE's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$34.95 Current Price

$18.54 Growth Price (DCF)

Overvalued by 46.94%


Growth Rate Assumed by Market: 14.83%


Future Free Cash Flow Growth Rate: -4.1%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$23.07 Stability Price (EPV)

Overvalued by 33.99%


Discount Rate: 15.0%

$-51.46 Book Price

Overvalued by 247.24%


Poor Cash Return on Invested Capital over the past 5 years

CCE has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CCE has only created $9.42 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 486.00M 569.00M 520.00M 650.00M 620.00M
divided by
Invested Capital 6.56B 6.21B 6.99B 5.71B 5.28B
Cash ROIC 7.41% 9.16% 7.44% 11.38% 11.73%

Excellent Return on Equity over the past 5 years

Over the past 5 years, CCE has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

CCE has generated $37.77 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 749.00M 677.00M 667.00M 663.00M 596.00M
divided by
Stockholders' Equity 2.90B 2.69B 2.28B 1.43B 957.00M
Return on Equity 25.84% 25.14% 29.25% 46.33% 62.28%

Excellent Business Performance over the past 10 years

CCE has been able to maintain profitability in good times and bad. This could mean CCE has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CCE has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 708.00M 717.00M 637.00M 864.00M 534.00M 486.00M 569.00M 520.00M 650.00M 620.00M

Weak Balance Sheet

CCE's financial position is not ideal. The key is to check whether CCE is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 184.00M 170.00M 722.00M 1.04B 321.00M 684.00M 721.00M 343.00M 223.00M 170.00M
Current Assets 3.69B 4.09B 4.58B 5.17B 2.23B 2.69B 2.76B 2.57B 2.46B 2.05B
Total Assets 23.23B 24.05B 15.59B 16.42B 8.60B 9.09B 9.51B 9.53B 8.54B 7.61B
Current Liabilities 3.82B 5.34B 5.07B 4.59B 1.94B 1.85B 2.58B 2.20B 2.61B 2.16B
Total Liabilities 18.70B 18.36B 15.62B 15.56B 5.45B 6.20B 6.82B 7.25B 7.11B 6.65B
Stockholder' Equity 4.53B 5.69B -31.00M 859.00M 3.14B 2.90B 2.69B 2.28B 1.43B 957.00M
Current Ratio 0.97 0.77 0.90 1.13 1.15 1.45 1.07 1.17 0.94 0.95
TL-to-TA 0.81 0.76 1.00 0.95 0.63 0.68 0.72 0.76 0.83 0.87

Consistent Reinvestment of Profits over the past 10 years

CCE has consistently retained profits. This may put CCE in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CCE can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 940.00M 1.53B -3.03B -2.45B 57.00M 638.00M 1.13B 1.58B 1.99B 2.33B
Retained Earnings Growth - 62.45% -298.36% 19.15% 102.33% 1,019.30% 76.49% 40.05% 26.25% 16.98%

Highly Competitive Industry over the past 10 years

It's likely that CCE is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely CCE invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.22 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -1.14B 711.00M -4.39B 731.00M 624.00M 749.00M 677.00M 667.00M 663.00M 596.00M
divided by
Revenue 19.80B 20.94B 21.81B 21.65B 6.71B 8.28B 8.06B 8.21B 8.26B 7.01B
Net Profit Margin -5.77% 3.40% -20.15% 3.38% 9.29% 9.04% 8.40% 8.12% 8.02% 8.50%

Varying Pricing Power over the past 10 years

CCE has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$43.33 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 7.82B 7.98B 8.04B 8.31B 2.48B 8.28B 2.90B 2.86B 2.97B 2.57B
divided by
Revenue 19.80B 20.94B 21.81B 21.65B 6.71B 8.28B 8.06B 8.21B 8.26B 7.01B
Gross Margin 39.48% 38.12% 36.89% 38.40% 36.94% 100.00% 35.97% 34.85% 35.98% 36.66%

High Capital Intensity over the past 10 years

CCE spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

70.10% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 882.00M 938.00M 981.00M 916.00M 291.00M 376.00M 378.00M 313.00M 332.00M 321.00M
divided by
Net Income -1.14B 711.00M -4.39B 731.00M 624.00M 749.00M 677.00M 667.00M 663.00M 596.00M
Capital Expenditure Ratio -77.17% 131.93% -22.33% 125.31% 46.63% 50.20% 55.83% 46.93% 50.08% 53.86%

Very Strong Dividend History over the past 10 years

CCE has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests CCE is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 114.00M 116.00M 138.00M 147.00M 40.00M 162.00M 187.00M 213.00M 246.00M 257.00M
divided by
Shares Outstanding 475.00M 488.00M 485.00M 493.00M 340.00M 327.00M 301.00M 273.00M 252.00M 235.00M
Dividend Paid Per Share 0.24 0.24 0.28 0.30 0.12 0.50 0.62 0.78 0.98 1.09
Price at Year End 12.90 16.80 7.79 14.20 24.58 25.78 31.29 44.03 44.85 49.62
Dividend Yield 1.86% 1.41% 3.65% 2.10% 0.48% 1.92% 1.99% 1.77% 2.18% 2.20%

Strong History of Stock Buybacks over the past 10 years

CCE has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 475.00M 488.00M 485.00M 493.00M 340.00M 327.00M 301.00M 273.00M 252.00M 235.00M
Stock Bought Back - -2.66% 0.62% -1.62% 45.00% 3.98% 8.64% 10.26% 8.33% 7.23%
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