The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) faces major threats, study reveals

pepsiBeverage companies like The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) may have enjoyed a considerable lucrative time enjoying their profits but a latest report disclose some disturbing facts for the industry.

Market research group Mintel conducted a survey that revealed that sales of regular soft drinks reduced by 1.9 percent to 27 billion US dollars. Now water is on the fastest growing segments of beverage industry.

The annual bottled water consumption surged 56 percent from 2001 to 2011 to 26 gallons per person. On contrary the annual soda consumption reduced 16 percent to 44 gallons per person. This is the reason companies like Coca Cola and PepsiCo own brands like Dasani and Aquafina.

Obesity is another threat to beverages industry. Nearly 26 percent of American adults were declared obese in 2011. Moreover, extensive sugar consumption is one of the most direct causes of Type 2 diabetes. In order to remain competitive companies like Coca Cola and PepsiCo need to understand consumer tastes and preferences that is a major threat to industry too.

Coming to the stock performance; PepsiCo, Inc. (NYSE:PEP) in last trading session end up at $79.99 by rising 0.04%, with the average volume of 5.07 million shares.

The stock price saw week’s volatility of 1.18% and month’s volatility is 1.15%, while the stock price of the company is moving up from its 20 days moving average with 2.06% and isolated positively from 50 days moving average with 5.33%.

Looking at Analytic Ratios; the price to sales ratio of PEP in past twelve months was calculated as 1.91 and price to cash ratio as 18.87. Company return on equity ratio is recorded as 28.62% and its return on assets is 8.42%.

Coming to the stock performance; The Coca-Cola Company (NYSE:KO) in last trading session end up at $ 41.08 by falling -0.24%, with the average volume of 14.02 million shares.

The stock price saw week’s volatility of 1.47% and month’s volatility is 1.25%, while the stock price of the company is moving up from its 20 days moving average with 2.29% and isolated positively from 50 days moving average with 5.79%.

Looking at Analytic Ratios; the price to sales ratio of KO in past twelve months was calculated as 3.81 and price to cash ratio as 11.06. Company return on equity ratio is recorded as 28.00% and its return on assets is 10.94%.

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