CCH  Coca Cola Hellenic Bottling Co

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Beverages (Production/Distribution)

Market Cap.

8.499B

Vuru Grade

53.90/100

Current Price

$23.33
0.00 (0.00%)

Growth Price

$28.03
Undervalued by 20.13%

Stability Price

$12.35
Overvalued by 47.05%

Company Metrics

  • P/E 30.54
  • P/S 0.93
  • P/B 2.23
  • EPS 0.764
  • Cash ROIC 9.24%
  • Cash Ratio 0.20
  • Dividend 0.666 / 2.85%
  • Avg. Vol. 19,768.00
  • Shares 364.29M
  • Market Cap. 8.499B

Company Description

Coca-Cola Hellenic Bottling Company S.A. engages in the production, sale, and distribution of alcohol-free beverages primarily in Europe. It principally operates as a bottler of The Coca-Cola Company's products. The company offers sparkling, still, and water beverages, as well as combined still and water beverages, including juices, waters, sports and energy drinks, and other ready-to-drink bevera... more


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

News

Coca Cola HBC AG – ADR (NYSE:CCH) has been upgraded to Buy in a statement by ...
Breaking Finance News - Jan 19, 2017
Yesterday Coca Cola HBC AG - ADR (NYSE:CCH) traded 0.00% even at $22.67. The company's 50-day moving average is $4.00 and its 200-day moving average is $5.00.
Goldman Sachs Group Inc. upgraded Coca Cola HBC AG – ADR (NYSE:CCH) to Buy in ...
Breaking Finance News - Jan 19, 2017
Goldman Sachs Group Inc. has upgraded Coca Cola HBC AG - ADR (NYSE:CCH) to Buy in a statement released on 1/19/2017.
How Social Networks Are Helping Coca Cola Win The Soda War With Pepsi In ...
Seeking Alpha - Dec 31, 2011
CCH is traded in the US as an ADR listed on the NYSE, and is the second largest Coke bottler in the world by volume after Coca-Cola Enterprises; it is a riskier investment because it operates in distressed European economies such as Italy and Ireland, ...
COCA-COLA HBC ADR : The Queen Recognises Investment Success with Royal Visit ...
4-traders (press release) - Oct 22, 2010
Her Majesty The Queen, accompanied by His Royal Highness The Duke of Edinburgh, today visited the Coca-Cola Hellenic bottling plant in County Antrim, Northern Ireland, to tour the recently opened factory and to officially open the new Coca-Cola ...
The ZALANDO SE UNSP ADR EACH REPR 2 (ZLNDY) Cut to “Hold” at Zacks Investment ...
DailyQuint - Jan 13, 2017
Zacks Investment Research cut shares of ZALANDO SE UNSP ADR EACH REPR 2 (NASDAQ:ZLNDY) from a buy rating to a hold rating in a research report released on Thursday.
Coca-Cola Hellenic reaffirms CSR commitment during global economic downturn
CSRwire.com (press release) - Jun 24, 2009
Athens 24 June 2009 - Coca-Cola Hellenic Bottling Company (Coca-Cola Hellenic) announces the release of its sixth annual Corporate Social Responsibility (CSR) report noting progress in key focus areas across its 28 countries of operation in 2008 ...
TAL Education Group (ADR) 26% Potential Upside Now Implied by BofA/Merrill
DirectorsTalk Interviews - Jan 25, 2017
TAL Education Group (ADR) with TICKER NYSE:TAL had its stock rating noted as 'Initiated' with the recommendation being set at 'BUY' yesterday by analysts at BofA/Merrill.
VOXELJET AG-ADR - Receive News & Ratings Daily
BBNS - Jan 23, 2017
Zacks Investment Research upgraded shares of VOXELJET AG-ADR (NYSE:VJET) from a strong sell rating to a hold rating in a research note issued to investors on Wednesday.
JPMorgan Chase & Co. Increases Position in MOMO INC -ADR (MOMO)
The Cerbat Gem - Jan 24, 2017
MOMO INC -ADR logo JPMorgan Chase & Co. raised its stake in shares of MOMO INC -ADR (NASDAQ:MOMO) by 18,390.7% during the third quarter, according to its most recent Form 13F filing with the SEC.
Opinion: Buy Greek stocks if you want a big gamble that could pay off
MarketWatch - Apr 22, 2015
These are: National Bank of Greece US:NBG bottling company Coca-Cola HBC CCHGY, -0.29% bookmaker OPAP GOFPY, -0.04% Hellenic Telecommunication HLTOY, -1.96% Titan Cement TITCF, -0.79% fashion and jewelry company Folli Follie FLLIY, ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CCH 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 CCH'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.

$23.33 Current Price

$28.03 Growth Price (DCF)

Undervalued by 20.13%


Growth Rate Assumed by Market: 7.45%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.35 Stability Price (EPV)

Overvalued by 47.05%


Discount Rate: 15.0%

$29.95 Book Price

Undervalued by 28.39%


Poor Cash Return on Invested Capital over the past 5 years

CCH 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.

CCH has only created $9.24 of cash for every $100 invested.
Figures in EUR. Fiscal year ends in December
20112012201320142015
Free Cash Flow 474.90M 358.10M 404.70M 35.95M 407.80M
divided by
Invested Capital 4.82B 4.58B 4.46B 455.06M 3.54B
Cash ROIC 9.85% 7.83% 9.08% 7.90% 11.53%

Poor Return on Equity over the past 5 years

CCH has shown an inability to deliver strong results for shareholders. This could be due to poor management, CCH operating in a highly competitive industry, or having a weak business in general.

CCH has only generated $7.39 of Earnings for every $100 of Shareholders' Equity.
Figures in EUR. Fiscal year ends in December
20112012201320142015
Net Income 268.90M 193.40M 221.20M 37.95M 280.70M
divided by
Stockholders' Equity 2.90B 3.01B 2.97B 994.16M 2.82B
Return on Equity 9.29% 6.43% 7.45% 3.82% 9.95%

Excellent Business Performance over the past 10 years

CCH has been able to maintain profitability in good times and bad. This could mean CCH 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.

CCH has created positive free cash flow for 9 or more of the past 10 years.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 133.22M 169.00M 286.80M 613.30M 611.70M 474.90M 358.10M 404.70M 35.95M 407.80M

Weak Balance Sheet

CCH's financial position is not ideal. The key is to check whether CCH 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 EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 288.95M 175.99M 750.00M 243.60M 330.30M 491.80M 452.70M 752.00M 570.39M 504.30M
Current Assets 1.62B 1.70B 2.38B 1.75B 1.93B 2.05B 1.97B 2.15B 669.28M 1.87B
Total Assets 7.29B 7.85B 7.52B 6.80B 7.23B 7.24B 7.25B 7.27B 1.18B 6.53B
Current Liabilities 1.40B 1.55B 2.27B 1.64B 2.04B 1.92B 2.22B 2.07B 156.30M 2.49B
Total Liabilities 4.13B 4.32B 4.68B 4.30B 4.25B 4.34B 4.24B 4.31B 187.58M 3.71B
Stockholder' Equity 3.16B 3.54B 2.84B 2.49B 2.99B 2.90B 3.01B 2.97B 994.16M 2.82B
Current Ratio 1.16 1.09 1.05 1.06 0.95 1.07 0.89 1.04 4.28 0.75
TL-to-TA 0.57 0.55 0.62 0.63 0.59 0.60 0.59 0.59 0.16 0.57

Consistent Reinvestment of Profits over the past 10 years

CCH has consistently retained profits. This may put CCH 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, CCH can greatly improve their long-term economic picture.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 1.19B 1.56B 993.00M 1.21B 1.74B 1.64B 1.90B 2.13B 235.57M 2.82B
Retained Earnings Growth - 31.24% -36.49% 22.00% 43.71% -5.76% 15.50% 12.14% -88.91% 1,095.60%

Highly Competitive Industry over the past 10 years

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

Only $4.69 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 314.47M 494.91M 227.60M 421.60M 434.90M 268.90M 193.40M 221.20M 37.95M 280.70M
divided by
Revenue 5.38B 6.18B 6.98B 6.54B 6.79B 6.85B 7.04B 6.87B 1.46B 6.35B
Net Profit Margin 5.85% 8.01% 3.26% 6.44% 6.40% 3.92% 2.75% 3.22% 2.60% 4.42%

Shrinking Pricing Power over the past 10 years

CCH has shrinking gross margins, suggesting that they are no longer able to set prices without consideration of the cost of goods sold. As gross margins shrink, CCH's flexibility to weather inflationary enviroments will diminish, which weakens their overall economic moat. Look at its future prospects to determine sustainability and whether the economic moat will continue to shrink or if it will rebound.

$36.05 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 2.09B 2.53B 2.81B 2.64B 2.74B 2.60B 2.52B 2.44B 202.80M 2.33B
divided by
Revenue 5.38B 6.18B 6.98B 6.54B 6.79B 6.85B 7.04B 6.87B 1.46B 6.35B
Gross Margin 38.90% 40.96% 40.27% 40.32% 40.39% 37.87% 35.81% 35.43% 13.87% 36.67%

High Capital Intensity over the past 10 years

CCH 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.

166.93% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 560.49M 571.02M 590.50M 383.90M 376.20M 370.80M 395.50M 380.20M 116.25M 331.50M
divided by
Net Income 314.47M 494.91M 227.60M 421.60M 434.90M 268.90M 193.40M 221.20M 37.95M 280.70M
Capital Expenditure Ratio 178.23% 115.38% 259.45% 91.06% 86.50% 137.90% 204.50% 171.88% 306.29% 118.10%

Inconsistent Dividend History over the past 10 years

CCH has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 76.87M 82.90M 102.80M 107.60M 109.00M 6.50M - 123.70M - 131.10M
divided by
Shares Outstanding 361.93M 363.90M 366.30M 365.60M 363.50M 363.80M 367.55M 365.20M 26.99M 365.20M
Dividend Paid Per Share 0.28 0.30 0.38 0.39 0.40 0.02 - 0.45 - 0.48
Price at Year End 24.90 41.78 13.88 22.76 26.19 16.70 22.64 28.82 23.33 4.42
Dividend Yield 1.14% 0.73% 2.71% 1.73% 1.53% 0.14% - 1.57% - 10.88%

History of Stock Buybacks over the past 10 years

CCH has some 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 EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 361.93M 363.90M 366.30M 365.60M 363.50M 363.80M 367.55M 365.20M 26.99M 365.20M
Stock Bought Back - -0.54% -0.65% 0.19% 0.58% -0.08% -1.02% 0.64% 1,253.07% -92.61%
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