By Mary-Lynn Cesar for Kapitall.
Former New York City Mayor
can rejoice (well, kinda): a new
finds most Americans are likely to skip soda and
sugar these days. According to the poll, 63% of Americans stated
they actively try to avoid soda while 52% said they actively try to
The results reveal an increase in this aspect of
health-consciousness, rising significantly from responses given
in a 2002 dietary choices survey. Back then, 41% and 43%
of Americans said they actively tried to avoid soda and sugar,
However, despite the fact that Americans are growing much
more likely to pass on sweets and sugary drinks, the public
has yet to fully embrace a healthy lifestyle. Fewer than half
of Americans make a concerted effort to reduce their salt intake,
and, as Gallup points out, although over 90% of Americans include
fruits and vegetables in their daily diets, there's no guarantee
they're doing so in a healthy way.
Nevertheless, since Americans appear to be slowly
ditching unhealthy habits, we decided to run some screens related
to corporate health. We began with a universe comprised of
stocks belonging to the beverages - soft drinks, farm products, and
food - major diversified industries. Then we screened for
stocks with a
return on assets (ROA) lower than the industry average on a
trailing twelve month (
ROA is a profitability metric that analyzes a company's ability
to use its assets-a company's debt and equity-to generate earnings,
and it is calculated by dividing net income by total assets. When a
company has a high ROA, it means the firm is able to use its
assets to make more money on less investment. Therefore, having an
ROA lower than the industry average means that a company earned
less profit on the resources it owns than an average company in its
Next, we looked for stocks with a
return on equity (ROE) lower than the industry average on a
. ROE shows how effective a company is at using investor money
to generate profit. It is calculated by dividing net income by
shareholder equity. A company with an ROE below the industry
average isn't as adept at using investors' money to make money.
After that, we screened for stocks with a
return on investment (ROI) lower than the industry average
on a TTM basis
. ROI is a metric that lets investors figure out the
profitability of an investment by dividing the benefit of said
investment (gain from investment - cost of investment) by the cost
of said investment. In the formula, gain from investment is the
money an investor earns from selling the investment.
If a company has an ROI lower than the industry average, it
indicates that the stock isn't as profitable an investment as many
of its peers.
Finally, we looked for stocks with
growth in revenue lower than the industry average on a TTM
. This means that the companies aren't as effective at selling
their inventory, which is a
soft drink manufacturers have encountered recently.
We were left with two US beverage stocks on our list. Do you
think Americans' changing dietary habits are behind their low
ROA, ROE, ROI, and revenue growth? Use this list as a starting
point for your own analysis, and let us know what you think in the
Click on the interactive chart to view data over
1. Coca-Cola Botting Co. Consolidated
): Engages in the production, marketing, and distribution of
nonalcoholic beverages, primarily products of The Coca-Cola
Company. Market cap at $657.06M, most recent closing price at
TTM Return on Assets at 1.93% vs. an industry average at 9.83%.
TTM Return on Equity at 14.47% vs. an industry average at 25.18%.
TTM Return on Investments at 3.12% vs. an industry average at
TTM Revenue Change at -1.58% vs. an industry average at
2. Cott Corporation
): Engages in the production and distribution of retailer brand
beverages in North America and internationally. Market cap at
$647.02M, most recent closing price at $6.81.
TTM Return on Assets at 0.88% vs. an industry average at 9.83%.
TTM Return on Equity at 2.19% vs. an industry average at 25.17%.
TTM Return on Investments at 1.1% vs. an industry average at
TTM Revenue Change at -7.55% vs. an industry average at
(List compiled by Mary-Lynn Cesar. Accounting data sourced
from Google Finance. Monthly return data sourced from Zacks
Investment Research. Revenue and ROE data sourced from Fidelity.
All other data sourced from finviz.)
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