STARBUCKS CORP (1SBUX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SBUX - US8552441094 - Common Stock
79.51 EUR
+8.47 (+11.92%)
Overall 1SBUX gets a fundamental rating of 4 out of 10. We evaluated 1SBUX against 60 industry peers in the Hotels, Restaurants & Leisure industry. While 1SBUX is still in line with the averages on profitability rating, there are concerns on its financial health. 1SBUX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1SBUX had positive earnings in the past year.
- 1SBUX had a positive operating cash flow in the past year.
- 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
- 1SBUX's Return On Assets of 5.80% is fine compared to the rest of the industry. 1SBUX outperforms 67.21% of its industry peers.
- With a decent Return On Invested Capital value of 12.29%, 1SBUX is doing good in the industry, outperforming 72.13% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1SBUX is above the industry average of 11.82%.
- The last Return On Invested Capital (12.29%) for 1SBUX is well below the 3 year average (16.70%), which needs to be investigated, but indicates that 1SBUX had better years and this may not be a problem.
| 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
- 1SBUX has a Profit Margin (4.99%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1SBUX has grown nicely.
- 1SBUX's Operating Margin of 9.63% is in line compared to the rest of the industry. 1SBUX outperforms 49.18% of its industry peers.
- In the last couple of years the Operating Margin of 1SBUX has grown nicely.
- 1SBUX has a Gross Margin of 22.77%. This is in the lower half of the industry: 1SBUX underperforms 68.85% of its industry peers.
- 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.
- The debt/assets ratio for 1SBUX is higher compared to a year ago.
2.2 Solvency
- 1SBUX has an Altman-Z score of 2.57. 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 better Altman-Z score (2.57) than 70.49% 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 | 2.57 |
ROIC/WACC1.55
WACC7.94%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that 1SBUX may have some problems paying its short term obligations.
- 1SBUX has a Current ratio of 0.72. This is in the lower half of the industry: 1SBUX underperforms 60.66% of its industry peers.
- 1SBUX has a Quick 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 Quick ratio of 0.51. This is in the lower half of the industry: 1SBUX underperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- 1SBUX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.63%.
- 1SBUX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.96% yearly.
- Looking at the last year, 1SBUX shows a small growth in Revenue. The Revenue has grown by 2.79% in the last year.
- Measured over the past years, 1SBUX shows a quite strong growth in Revenue. The Revenue has been growing by 9.60% on average per year.
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
- Based on estimates for the next years, 1SBUX will show a very strong growth in Earnings Per Share. The EPS will grow by 25.22% on average per year.
- 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 Y8.7%
EPS Next 2Y17.15%
EPS Next 3Y17.92%
EPS Next 5Y25.22%
Revenue Next Year3.37%
Revenue Next 2Y5.18%
Revenue Next 3Y5.32%
Revenue Next 5Y10.08%
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
- A Price/Earnings ratio of 41.41 indicates a quite expensive valuation of 1SBUX.
- The rest of the industry has a similar Price/Earnings ratio as 1SBUX.
- 1SBUX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 38.10 indicates a quite expensive valuation of 1SBUX.
- Based on the Price/Forward Earnings ratio, 1SBUX is valued a bit more expensive than 62.30% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1SBUX to the average of the S&P500 Index (24.26), we can say 1SBUX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.41 | ||
| Fwd PE | 38.1 |
4.2 Price Multiples
- 60.66% of the companies in the same industry are cheaper than 1SBUX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, 1SBUX is valued a bit more expensive than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.01 | ||
| EV/EBITDA | 21.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1SBUX does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of 1SBUX may justify a higher PE ratio.
- 1SBUX's earnings are expected to grow with 17.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.76
PEG (5Y)2.97
EPS Next 2Y17.15%
EPS Next 3Y17.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.66%, 1SBUX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.29, 1SBUX pays a better dividend. On top of this 1SBUX pays more dividend than 80.33% of the companies listed in the same industry.
- 1SBUX's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- On average, the dividend of 1SBUX grows each year by 8.39%, which is quite nice.
Dividend Growth(5Y)8.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1SBUX pays out 149.29% of its income as dividend. 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 2Y17.15%
EPS Next 3Y17.92%
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.
What is the valuation status of STARBUCKS CORP (1SBUX.MI) stock?
ChartMill assigns a valuation rating of 1 / 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 6 / 10.
What is the financial health of STARBUCKS CORP (1SBUX.MI) stock?
The financial health rating of STARBUCKS CORP (1SBUX.MI) is 2 / 10.
Can you provide the dividend sustainability for 1SBUX stock?
The dividend rating of STARBUCKS CORP (1SBUX.MI) is 6 / 10 and the dividend payout ratio is 149.29%.