STARBUCKS CORP (1SBUX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SBUX - US8552441094 - Common Stock
74.74 EUR
+4.84 (+6.92%)
We assign a fundamental rating of 5 out of 10 to 1SBUX. 1SBUX was compared to 56 industry peers in the Hotels, Restaurants & Leisure industry. 1SBUX scores excellent on profitability, but there are concerns on its financial health. 1SBUX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1SBUX had positive earnings in the past year.
In the past year 1SBUX had a positive cash flow from operations.
1SBUX had positive earnings in each of the past 5 years.
Each year in the past 5 years 1SBUX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.80%, 1SBUX is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.29%, 1SBUX belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1SBUX is significantly above the industry average of 11.27%.
The 3 year average ROIC (16.70%) for 1SBUX is well above the current ROIC(12.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | N/A | ||
| ROIC | 12.29% |
ROA(3y)10.6%
ROA(5y)11.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.7%
ROIC(5y)16.57%
1.3 Margins
The Profit Margin of 1SBUX (4.99%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 1SBUX has grown nicely.
Looking at the Operating Margin, with a value of 9.63%, 1SBUX is in line with its industry, outperforming 59.26% of the companies in the same industry.
In the last couple of years the Operating Margin of 1SBUX has grown nicely.
Looking at the Gross Margin, with a value of 22.77%, 1SBUX is doing worse than 68.52% of the companies in the same industry.
In the last couple of years the Gross Margin of 1SBUX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.63% | ||
| PM (TTM) | 4.99% | ||
| GM | 22.77% |
OM growth 3Y-11.39%
OM growth 5Y7.5%
PM growth 3Y-21.13%
PM growth 5Y4.81%
GM growth 3Y-4.33%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1SBUX is creating value.
1SBUX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1SBUX has been reduced compared to 5 years ago.
1SBUX has a worse debt/assets ratio than last year.
2.2 Solvency
1SBUX has an Altman-Z score of 2.45. This is not the best score and indicates that 1SBUX is in the grey zone with still only limited risk for bankruptcy at the moment.
1SBUX has a Altman-Z score of 2.45. This is in the better half of the industry: 1SBUX outperforms 70.37% of its industry peers.
1SBUX has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as 1SBUX would need 6.58 years to pay back of all of its debts.
1SBUX has a Debt to FCF ratio (6.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.57
WACC7.81%
2.3 Liquidity
1SBUX has a Current Ratio of 0.72. This is a bad value and indicates that 1SBUX is not financially healthy enough and could expect problems in meeting its short term obligations.
1SBUX has a Current ratio (0.72) which is in line with its industry peers.
A Quick Ratio of 0.51 indicates that 1SBUX may have some problems paying its short term obligations.
1SBUX's Quick ratio of 0.51 is on the low side compared to the rest of the industry. 1SBUX is outperformed by 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for 1SBUX have decreased strongly by -32.63% in the last year.
Measured over the past years, 1SBUX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.96% on average per year.
1SBUX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.79%.
The Revenue has been growing by 9.60% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.63%
EPS 3Y-9.01%
EPS 5Y13.96%
EPS Q2Q%-35%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.46%
3.2 Future
1SBUX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.22% yearly.
Based on estimates for the next years, 1SBUX will show a quite strong growth in Revenue. The Revenue will grow by 10.08% on average per year.
EPS Next Y14.12%
EPS Next 2Y18.81%
EPS Next 3Y19.44%
EPS Next 5Y25.22%
Revenue Next Year4.39%
Revenue Next 2Y5.71%
Revenue Next 3Y5.84%
Revenue Next 5Y10.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 39.13, 1SBUX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as 1SBUX.
When comparing the Price/Earnings ratio of 1SBUX to the average of the S&P500 Index (26.31), we can say 1SBUX is valued slightly more expensively.
A Price/Forward Earnings ratio of 34.21 indicates a quite expensive valuation of 1SBUX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SBUX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, 1SBUX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.13 | ||
| Fwd PE | 34.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1SBUX is valued a bit more expensive than the industry average as 62.96% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, 1SBUX is valued a bit more expensive than the industry average as 68.52% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.52 | ||
| EV/EBITDA | 19.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1SBUX may justify a higher PE ratio.
1SBUX's earnings are expected to grow with 19.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.77
PEG (5Y)2.8
EPS Next 2Y18.81%
EPS Next 3Y19.44%
5. Dividend
5.1 Amount
1SBUX has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
1SBUX's Dividend Yield is rather good when compared to the industry average which is at 2.83. 1SBUX pays more dividend than 81.48% of the companies in the same industry.
1SBUX's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of 1SBUX is nicely growing with an annual growth rate of 8.39%!
Dividend Growth(5Y)8.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
149.29% of the earnings are spent on dividend by 1SBUX. This is not a sustainable payout ratio.
1SBUX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP149.29%
EPS Next 2Y18.81%
EPS Next 3Y19.44%
BIT:1SBUX (11/26/2025, 7:00:00 PM)
74.74
+4.84 (+6.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap84.96B
Revenue(TTM)37.18B
Net Income(TTM)1.86B
Analysts71.06
Price Target83.12 (11.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend2.1
Dividend Growth(5Y)8.39%
DP149.29%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.63%
Min EPS beat(2)-9.45%
Max EPS beat(2)-7.8%
EPS beat(4)1
Avg EPS beat(4)-8.34%
Min EPS beat(4)-17.35%
Max EPS beat(4)1.24%
EPS beat(8)1
Avg EPS beat(8)-10.08%
EPS beat(12)4
Avg EPS beat(12)-5.3%
EPS beat(16)6
Avg EPS beat(16)-3.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.34%
Revenue beat(8)1
Avg Revenue beat(8)-2.95%
Revenue beat(12)2
Avg Revenue beat(12)-2.4%
Revenue beat(16)2
Avg Revenue beat(16)-2.07%
PT rev (1m)-1.9%
PT rev (3m)1.89%
EPS NQ rev (1m)-11.57%
EPS NQ rev (3m)-12.02%
EPS NY rev (1m)-6.65%
EPS NY rev (3m)-15.43%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.13 | ||
| Fwd PE | 34.21 | ||
| P/S | 2.66 | ||
| P/FCF | 40.52 | ||
| P/OCF | 20.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.62 |
EPS(TTM)1.91
EY2.56%
EPS(NY)2.18
Fwd EY2.92%
FCF(TTM)1.84
FCFY2.47%
OCF(TTM)3.59
OCFY4.8%
SpS28.08
BVpS-6.12
TBVpS-8.79
PEG (NY)2.77
PEG (5Y)2.8
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | N/A | ||
| ROCE | 16.42% | ||
| ROIC | 12.29% | ||
| ROICexc | 14.62% | ||
| ROICexgc | 18.11% | ||
| OM | 9.63% | ||
| PM (TTM) | 4.99% | ||
| GM | 22.77% | ||
| FCFM | 6.57% |
ROA(3y)10.6%
ROA(5y)11.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.7%
ROIC(5y)16.57%
ROICexc(3y)20.24%
ROICexc(5y)20.6%
ROICexgc(3y)25.14%
ROICexgc(5y)26.08%
ROCE(3y)22.32%
ROCE(5y)22.18%
ROICexgc growth 3Y-12.47%
ROICexgc growth 5Y15.97%
ROICexc growth 3Y-11.56%
ROICexc growth 5Y17.16%
OM growth 3Y-11.39%
OM growth 5Y7.5%
PM growth 3Y-21.13%
PM growth 5Y4.81%
GM growth 3Y-4.33%
GM growth 5Y0.91%
F-Score5
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 130.14% | ||
| Cap/Sales | 6.2% | ||
| Interest Coverage | 6.09 | ||
| Cash Conversion | 88.7% | ||
| Profit Quality | 131.54% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.45 |
F-Score5
WACC7.81%
ROIC/WACC1.57
Cap/Depr(3y)155.16%
Cap/Depr(5y)136.46%
Cap/Sales(3y)6.79%
Cap/Sales(5y)6.23%
Profit Quality(3y)102.96%
Profit Quality(5y)98.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.63%
EPS 3Y-9.01%
EPS 5Y13.96%
EPS Q2Q%-35%
EPS Next Y14.12%
EPS Next 2Y18.81%
EPS Next 3Y19.44%
EPS Next 5Y25.22%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.46%
Revenue Next Year4.39%
Revenue Next 2Y5.71%
Revenue Next 3Y5.84%
Revenue Next 5Y10.08%
EBIT growth 1Y-30.21%
EBIT growth 3Y-7.09%
EBIT growth 5Y17.82%
EBIT Next Year66.32%
EBIT Next 3Y25.93%
EBIT Next 5Y26.73%
FCF growth 1Y-26.4%
FCF growth 3Y-1.51%
FCF growth 5Y84.51%
OCF growth 1Y-22.12%
OCF growth 3Y2.59%
OCF growth 5Y24.33%
STARBUCKS CORP / 1SBUX.MI FAQ
Can you provide the ChartMill fundamental rating for STARBUCKS CORP?
ChartMill assigns a fundamental rating of 4 / 10 to 1SBUX.MI.
Can you provide the valuation status for STARBUCKS CORP?
ChartMill assigns a valuation rating of 2 / 10 to STARBUCKS CORP (1SBUX.MI). This can be considered as Overvalued.
Can you provide the profitability details for STARBUCKS CORP?
STARBUCKS CORP (1SBUX.MI) has a profitability rating of 7 / 10.
What is the expected EPS growth for STARBUCKS CORP (1SBUX.MI) stock?
The Earnings per Share (EPS) of STARBUCKS CORP (1SBUX.MI) is expected to grow by 14.12% in the next year.
Can you provide the dividend sustainability for 1SBUX stock?
The dividend rating of STARBUCKS CORP (1SBUX.MI) is 4 / 10 and the dividend payout ratio is 149.29%.