Will Coca-Cola Amatil Ltd outperform in 2015?

For the first time in over eight months, shares of Coca-Cola Amatil Ltd (ASX:CCL) will burst through $10 per share tomorrow if the company reports well.

Owen Raszkiewicz

Owen Raszkiewicz is a Motley Fool Contributor. Owen has been a Contributor since 2013, having also spent time as a Fool writer/analyst. He also worked as an Investment Analyst at Zenith Investment Partners, Australia's top research house specialising in managed funds. Owen has appeared on Channel 10's The Project and was invited on the BBC. He holds a Masters of Applied Finance, Masters of Financial Planning, Bachelor of Technology, Advanced Diploma of Financial Services and Diploma of Mortgage Broking Management. In addition, Owen has passed Level 1 of the Chartered Financial Analyst (CFA) Program. He has taken the Banking + Finance Oath (BFO). When he is not writing, Owen is Managing Director of Rask Finance, an Australian financial education company. You can email him: [email protected].

Published February 12, 2015 1:12 pm AEDT

Hovering at just $9.97 per share at 3.30pm this afternoon, shares of Coca-Cola Amatil Ltd (ASX: CCL) were up a firm 1.6% in afternoon trade today, ahead of the company's full-year results announcement tomorrow.

Click to enlarge. Source: Google Finance.

Having not been above the psychological – but otherwise unimportant – figure of $10 per share since April 2014, CCA shares are, in my opinion, a good buy for value investors.

Provided management can deliver on its promises of cost cutting and achieve decent results in Indonesia then the company could return to sustainable earnings per share growth.

If CCA can achieve earnings before interest and taxes (EBIT) of anywhere greater than $316 million (as it said it would in a market update in December 2014) in the second half of financial year 2014 (or over $632 million for the full year), the stock probably won't last long under $10 per share.

This isn't me instructing you to trade the stock (I believe share trading is an express service to the poor house), but to read through tomorrow's results and consider it for its long-term dividend and capital gains potential.

According to my discounted cash flow analysis, at today's prices, investors have a great margin of safety under even the most conservative estimates of growth.

With a 4.1% partially franked dividend to boot, watch this space for tomorrow's results.

An even better dividend idea than Coca-Cola Amatil…

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