Remember what makes this stock a Motley Fool Inside Value selection, Fool: It's broken. Growth has flattened in recent years. Operating cash flow growth has declined. But that's the fizz. Wait for the soda to settle. A peek under the ice cubes reveals that new-wave CEO Neville Isdell's investments are beginning to pay off through increased returns on capital:
|Period||Return on capital||Year-over-year gain (percentage points)|
Source: Capital IQ, a division of Standard & Poor's
Still sugary sweet
Next, let's address marketing. Both Seth and Rick are wrong in claiming that Coke's
Coke doesn't need to teach the world to sing anymore, guys. It just needs to get a few billion thirsty people to keep buying its drinks. Do you really want to bet they'll stop?
Ask us for anall-access passto Inside Value and you'll be privy to chief advisor Philip Durell's best picks, which collectively are beating the market by more than two percentage points. You'll also receive instructive lessons on valuation and company analysis. Give Inside Value a try; it's free for 30 days.
Fool contributorTim Beyersenjoys a Coke most afternoons but didn't own the stock or shares in any of the other companies mentioned in this story at the time of publication. Get the skinny on all the stocks in his portfolio by checking Tim's Foolprofile. The Motley Fool'sdisclosure policyis like a cold Coke on a hot day.
More from The Motley Fool
Will Diet Coke's New Flavors Hit the Spot?
Coke introduces four new Diet Coke flavors, alongside a bright and modern packaging redesign. Is this a recipe for success?
10 Things You Didn't Know About Coca-Cola
These facts may surprise you.
These 3 Dividend Giants Are Safer Than You Think
Concerns about these stocks and their dividends are overblown.