Fundamentals · KO
DuPont (ROE Decomposition) for KO
AI-generated plain-English read of dupont (roe decomposition) for KO. Updated daily.
Margin-driven ROE, deteriorating
highROE is slipping (11.6%) and profitability (33.2%) is the culprit — the margin leg is weakening. Watch for pricing pressure or cost creep compressing margins further.
What will probably happen
- ROE has been falling — without a reversal in the weakest leg, the next period will likely show further pressure.
What to do
- If you HOLD this stock
- ROE is declining — reassess whether the original investment thesis still holds. If the weakest leg doesn't reverse in the next one or two quarters, that's a signal to trim.
- If you are EVALUATING this stock
- ROE is declining — wait for one quarter of stabilization before entering. Deteriorating DuPont trends often have a lag; buying into a falling knife adds more risk than the valuation discount typically compensates for.
- If you trade OPTIONS
- No sharp DuPont signal either way. Premium is fairly priced for a fundamentals-stable story — wait for a clearer inflection in one of the legs before positioning directionally.
66 periods with all three DuPont legs populated — trend reads are reliable.
Technical details
Technical analysis
- ROE
- 11.6% — deteriorating
- Sector context
- not provided
- Periods analysed
- 66
- Primary ROE driver
- Margin Driven
- Profitability (net margin)
- 33.2% — stable, healthy
- Asset efficiency (turnover)
- 0.12× — deteriorating, mixed
- Leverage (equity multiplier)
- 2.82× — deteriorating, healthy
Key levels
| Level | Value |
|---|---|
| latest em | 2.817 |
| latest roe | 0.116 |
| latest margin | 0.332 |
| latest turnover | 0.124 |
| em high threshold | 4 |
| em critical threshold | 5 |