STARBUCKS CORP (1SBUX.MI) Stock Fundamental Analysis
BIT:1SBUX - Borsa Italiana Milan - US8552441094 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1SBUX. 1SBUX was compared to 53 industry peers in the Hotels, Restaurants & Leisure industry. 1SBUX has an average financial health and profitability rating. 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.
1SBUX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1SBUX (12.00%) is better than 84.44% of its industry peers.
1SBUX has a Return On Invested Capital of 17.52%. This is amongst the best in the industry. 1SBUX outperforms 84.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1SBUX is significantly above the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | N/A | ||
| ROIC | 17.52% |
ROA(3y)12.58%
ROA(5y)10.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.75%
ROIC(5y)15.39%
1.3 Margins
With a Profit Margin value of 10.40%, 1SBUX perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1SBUX has declined.
The Operating Margin of 1SBUX (14.18%) is better than 68.89% of its industry peers.
1SBUX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 26.90%, 1SBUX is doing worse than 77.78% of the companies in the same industry.
1SBUX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.18% | ||
| PM (TTM) | 10.4% | ||
| GM | 26.9% |
OM growth 3Y-4.29%
OM growth 5Y-0.81%
PM growth 3Y-10.39%
PM growth 5Y-5.2%
GM growth 3Y-2.5%
GM growth 5Y-0.97%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1SBUX has less shares outstanding
1SBUX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.18 indicates that 1SBUX is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1SBUX (3.18) is better than 75.56% of its industry peers.
1SBUX has a debt to FCF ratio of 4.69. This is a neutral value as 1SBUX would need 4.69 years to pay back of all of its debts.
1SBUX's Debt to FCF ratio of 4.69 is fine compared to the rest of the industry. 1SBUX outperforms 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 3.18 |
ROIC/WACC2.07
WACC8.46%
2.3 Liquidity
A Current Ratio of 0.75 indicates that 1SBUX may have some problems paying its short term obligations.
1SBUX has a worse Current ratio (0.75) than 66.67% of its industry peers.
A Quick Ratio of 0.56 indicates that 1SBUX may have some problems paying its short term obligations.
1SBUX's Quick ratio of 0.56 is on the low side compared to the rest of the industry. 1SBUX is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for 1SBUX have decreased by -6.76% in the last year.
Measured over the past 5 years, 1SBUX shows a small growth in Earnings Per Share. The EPS has been growing by 3.70% on average per year.
The Revenue has been growing slightly by 0.56% in the past year.
Measured over the past years, 1SBUX shows a small growth in Revenue. The Revenue has been growing by 6.42% on average per year.
EPS 1Y (TTM)-6.76%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-24.53%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%-3.2%
3.2 Future
The Earnings Per Share is expected to grow by 14.41% on average over the next years. This is quite good.
1SBUX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.99% yearly.
EPS Next Y-3.9%
EPS Next 2Y7.07%
EPS Next 3Y10.7%
EPS Next 5Y14.41%
Revenue Next Year2.14%
Revenue Next 2Y4.49%
Revenue Next 3Y6.08%
Revenue Next 5Y7.99%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.66, which means the current valuation is very expensive for 1SBUX.
Based on the Price/Earnings ratio, 1SBUX is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1SBUX is valued at the same level.
The Price/Forward Earnings ratio is 33.95, which means the current valuation is very expensive for 1SBUX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SBUX indicates a slightly more expensive valuation: 1SBUX is more expensive than 66.67% of the companies listed in the same industry.
1SBUX is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 33.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1SBUX is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1SBUX indicates a slightly more expensive valuation: 1SBUX is more expensive than 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.9 | ||
| EV/EBITDA | 19.96 |
4.3 Compensation for Growth
1SBUX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.82
EPS Next 2Y7.07%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
1SBUX has a Yearly Dividend Yield of 2.58%.
1SBUX's Dividend Yield is rather good when compared to the industry average which is at 2.78. 1SBUX pays more dividend than 86.67% of the companies in the same industry.
1SBUX's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
On average, the dividend of 1SBUX grows each year by 9.97%, which is quite nice.
Dividend Growth(5Y)9.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1SBUX pays out 68.74% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.74%
EPS Next 2Y7.07%
EPS Next 3Y10.7%
STARBUCKS CORP
BIT:1SBUX (2/3/2025, 7:00:00 PM)
104.5
-0.08 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap118.48B
Analysts71.36
Price Target100.8 (-3.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend2.27
Dividend Growth(5Y)9.97%
DP68.74%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.03%
Min EPS beat(2)-23.71%
Max EPS beat(2)-2.36%
EPS beat(4)0
Avg EPS beat(4)-11.82%
Min EPS beat(4)-23.71%
Max EPS beat(4)-2.36%
EPS beat(8)3
Avg EPS beat(8)-3.78%
EPS beat(12)5
Avg EPS beat(12)-2.06%
EPS beat(16)8
Avg EPS beat(16)1.49%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-3.32%
Revenue beat(4)0
Avg Revenue beat(4)-4.99%
Min Revenue beat(4)-8.04%
Max Revenue beat(4)-3.32%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-2.46%
Revenue beat(16)2
Avg Revenue beat(16)-2.51%
PT rev (1m)1.6%
PT rev (3m)15.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.14%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 33.95 | ||
| P/S | 3.38 | ||
| P/FCF | 36.9 | ||
| P/OCF | 20.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.96 |
EPS(TTM)3.2
EY3.06%
EPS(NY)3.08
Fwd EY2.95%
FCF(TTM)2.83
FCFY2.71%
OCF(TTM)5.2
OCFY4.98%
SpS30.87
BVpS-6.36
TBVpS-9.27
PEG (NY)N/A
PEG (5Y)8.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | N/A | ||
| ROCE | 23.04% | ||
| ROIC | 17.52% | ||
| ROICexc | 20.83% | ||
| ROICexgc | 25.48% | ||
| OM | 14.18% | ||
| PM (TTM) | 10.4% | ||
| GM | 26.9% | ||
| FCFM | 9.17% |
ROA(3y)12.58%
ROA(5y)10.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.75%
ROIC(5y)15.39%
ROICexc(3y)22.75%
ROICexc(5y)19.3%
ROICexgc(3y)28.54%
ROICexgc(5y)24.55%
ROCE(3y)24.75%
ROCE(5y)20.33%
ROICexcg growth 3Y-3.53%
ROICexcg growth 5Y-12.42%
ROICexc growth 3Y-1.05%
ROICexc growth 5Y-6.35%
OM growth 3Y-4.29%
OM growth 5Y-0.81%
PM growth 3Y-10.39%
PM growth 5Y-5.2%
GM growth 3Y-2.5%
GM growth 5Y-0.97%
F-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 174.42% | ||
| Cap/Sales | 7.68% | ||
| Interest Coverage | 8.99 | ||
| Cash Conversion | 90.67% | ||
| Profit Quality | 88.23% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3.18 |
F-Score5
WACC8.46%
ROIC/WACC2.07
Cap/Depr(3y)151.91%
Cap/Depr(5y)130.17%
Cap/Sales(3y)6.62%
Cap/Sales(5y)6.25%
Profit Quality(3y)85.07%
Profit Quality(5y)75.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.76%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-24.53%
EPS Next Y-3.9%
EPS Next 2Y7.07%
EPS Next 3Y10.7%
EPS Next 5Y14.41%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%-3.2%
Revenue Next Year2.14%
Revenue Next 2Y4.49%
Revenue Next 3Y6.08%
Revenue Next 5Y7.99%
EBIT growth 1Y-7.15%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year17.45%
EBIT Next 3Y15.23%
EBIT Next 5Y16.07%
FCF growth 1Y-9.71%
FCF growth 3Y-9.78%
FCF growth 5Y0.48%
OCF growth 1Y1.45%
OCF growth 3Y0.59%
OCF growth 5Y3.85%