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Value: Cramer says, it’s the real thing

(Click for video linked to a searchable transcript of this Mad Money segment)

If you want to see value, Jim Cramer says take a look at the quarter that this company just delivered.

It's Coca-Cola.

"We're beginning to get our momentum back," Chief Executive Muhtar Kent said on CNBC after the company released earnings. For example, Coke said global unit case volume rose 2% during the January-March period, a result that beat Wall Street forecasts.

However, when looking at Coke as a value proposition, Cramer said it's critical to look at cash management.

And on this metric, Coke shines.

Getty Images

"It has been very aggressive at creating 'sustainable shareholder value,' Cramer said. "Coke pays a heady dividend of $1.22 a share, that's a nine percent increase over last year. And it's increased the dividend every year for more than half a century. What high growth stock can lay claim to that accomplishment? Try none."

In addition, Cramer noted that Coke is actively reinventing its brand to unlock value. "I'm talking about things like the cool new aluminum bottle that's eye-grabbing, supplied by Alcoa."

And Cramer thinks strategic acquisitions made by Coke could generate value, too.

"Their intriguing stake in Keurig comes to mind, which, according to the company, 'Opens up an exciting new packaging format for our brands.'"

Of course, the stock presents some concerns too. Cramer believes a growing number of people will likely stop drinking both diet and regular sodas, instead switching to non-carbonated alternatives.

Although Coke sells a wide range of non-carbonated beverages, the sea-change presents significant long-term headwinds.

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"Nonetheless, this quarter gives me confidence that Coke sees what has to be done, and that they will be economical and efficient as they make necessary changes," Cramer said.

"That's what value means. I think value always has a place in any diversified portfolio and if Coca Cola ever sells off here, I have to admit that as much as I don't like to drink it I would like to own it. "

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