STARBUCKS CORP (SBUX)
US8552441094 - Common Stock
SBUX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has only an average score on both its financial health and profitability. SBUX has a correct valuation and a medium growth rate. Finally SBUX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SBUX was profitable.
SBUX had a positive operating cash flow in the past year.
SBUX had positive earnings in each of the past 5 years.
In the past 5 years SBUX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SBUX (14.16%) is better than 90.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.67%, SBUX belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
SBUX had an Average Return On Invested Capital over the past 3 years of 18.26%. This is significantly above the industry average of 9.90%.
The 3 year average ROIC (18.26%) for SBUX is below the current ROIC(19.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.16% | ||
| ROE | N/A | ||
| ROIC | 19.67% |
ROA(3y)13.04%
ROA(5y)12.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.26%
ROIC(5y)16.66%
1.3 Margins
SBUX has a better Profit Margin (11.38%) than 73.88% of its industry peers.
In the last couple of years the Profit Margin of SBUX has declined.
The Operating Margin of SBUX (15.31%) is better than 65.67% of its industry peers.
In the last couple of years the Operating Margin of SBUX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 27.74%, SBUX is doing worse than 81.34% of the companies in the same industry.
In the last couple of years the Gross Margin of SBUX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.31% | ||
| PM (TTM) | 11.38% | ||
| GM | 27.74% |
OM growth 3Y31.83%
OM growth 5Y-0.05%
PM growth 3Y42.7%
PM growth 5Y-8.9%
GM growth 3Y8.02%
GM growth 5Y-1.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SBUX is creating value.
Compared to 1 year ago, SBUX has less shares outstanding
Compared to 5 years ago, SBUX has less shares outstanding
SBUX has a better debt/assets ratio than last year.
2.2 Solvency
SBUX has an Altman-Z score of 2.85. This is not the best score and indicates that SBUX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.85, SBUX is in the better half of the industry, outperforming 79.10% of the companies in the same industry.
SBUX has a debt to FCF ratio of 3.95. This is a good value and a sign of high solvency as SBUX would need 3.95 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.95, SBUX is doing good in the industry, outperforming 78.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.95 | ||
| Altman-Z | 2.85 |
ROIC/WACC2.41
WACC8.17%
2.3 Liquidity
A Current Ratio of 0.86 indicates that SBUX may have some problems paying its short term obligations.
SBUX has a Current ratio (0.86) which is in line with its industry peers.
A Quick Ratio of 0.63 indicates that SBUX may have some problems paying its short term obligations.
The Quick ratio of SBUX (0.63) is worse than 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
SBUX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.92%, which is quite good.
SBUX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.60% yearly.
The Revenue has been growing slightly by 7.45% in the past year.
The Revenue has been growing slightly by 7.79% on average over the past years.
EPS 1Y (TTM)15.92%
EPS 3Y45.19%
EPS 5Y8.6%
EPS growth Q2Q-8.11%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y15.22%
Revenue growth 5Y7.79%
Revenue growth Q2Q-1.8%
3.2 Future
Based on estimates for the next years, SBUX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.64% on average per year.
SBUX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y16.46%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
EPS Next 5Y12.64%
Revenue Next Year8.16%
Revenue Next 2Y8.92%
Revenue Next 3Y9.02%
Revenue Next 5Y7.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.39, the valuation of SBUX can be described as rather expensive.
SBUX's Price/Earnings ratio is a bit cheaper when compared to the industry. SBUX is cheaper than 63.43% of the companies in the same industry.
SBUX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.19, the valuation of SBUX can be described as correct.
64.18% of the companies in the same industry are more expensive than SBUX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SBUX to the average of the S&P500 Index (20.15), we can say SBUX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
SBUX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBUX indicates a somewhat cheap valuation: SBUX is cheaper than 64.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| EV/EBITDA | 14.08 |
4.3 Compensation for Growth
SBUX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SBUX may justify a higher PE ratio.
SBUX's earnings are expected to grow with 16.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)2.49
EPS Next 2Y16.37%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 2.75. SBUX pays more dividend than 87.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, SBUX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of SBUX is nicely growing with an annual growth rate of 10.79%!
SBUX has paid a dividend for at least 10 years, which is a reliable track record.
SBUX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.79%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
60.33% of the earnings are spent on dividend by SBUX. This is not a sustainable payout ratio.
The dividend of SBUX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP60.33%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
STARBUCKS CORP
NASDAQ:SBUX (5/17/2024, 7:25:15 PM)
After market: 78 +0.15 (+0.19%)77.85
+2.57 (+3.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap88.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 16.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.3
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.16% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.31% | ||
| PM (TTM) | 11.38% | ||
| GM | 27.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.92%
EPS 3Y45.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.45%
Revenue growth 3Y15.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y