STARBUCKS CORP (1SBUX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SBUX - US8552441094 - Common Stock
79.51 EUR
+1.01 (+1.29%)
We assign a fundamental rating of 4 out of 10 to 1SBUX. 1SBUX was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of 1SBUX while its profitability can be described as average. 1SBUX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1SBUX was profitable.
- 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
- 1SBUX has a Return On Assets of 5.80%. This is in the better half of the industry: 1SBUX outperforms 66.13% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.29%, 1SBUX is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1SBUX is above the industry average of 12.01%.
- 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's Profit Margin of 4.99% is in line compared to the rest of the industry. 1SBUX outperforms 48.39% of its industry peers.
- 1SBUX's Profit Margin has improved in the last couple of years.
- 1SBUX has a Operating Margin (9.63%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of 1SBUX has grown nicely.
- 1SBUX has a worse Gross Margin (22.77%) than 64.52% 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.
- Compared to 1 year ago, 1SBUX has more shares outstanding
- 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
- An Altman-Z score of 2.65 indicates that 1SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1SBUX has a better Altman-Z score (2.65) than 69.35% of its industry peers.
- The Debt to FCF ratio of 1SBUX is 6.58, which is on the high side as it means it would take 1SBUX, 6.58 years of fcf income to pay off all of its debts.
- 1SBUX's Debt to FCF ratio of 6.58 is in line compared to the rest of the industry. 1SBUX outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.54
WACC7.97%
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 62.90% of its industry peers.
- A Quick Ratio of 0.51 indicates that 1SBUX may have some problems paying its short term obligations.
- With a Quick ratio value of 0.51, 1SBUX is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| 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.
- The Revenue has been growing slightly by 2.79% in the past year.
- 1SBUX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.60% yearly.
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 41.85 indicates a quite expensive valuation of 1SBUX.
- 1SBUX's Price/Earnings is on the same level as the industry average.
- 1SBUX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 38.51, the valuation of 1SBUX can be described as expensive.
- 61.29% of the companies in the same industry are cheaper than 1SBUX, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1SBUX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.85 | ||
| Fwd PE | 38.51 |
4.2 Price Multiples
- 62.90% of the companies in the same industry are cheaper than 1SBUX, based on the Enterprise Value to EBITDA ratio.
- 1SBUX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1SBUX is more expensive than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.47 | ||
| EV/EBITDA | 22.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1SBUX has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1SBUX's earnings are expected to grow with 17.92% in the coming years.
PEG (NY)4.81
PEG (5Y)3
EPS Next 2Y17.15%
EPS Next 3Y17.92%
5. Dividend
5.1 Amount
- 1SBUX has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.36, 1SBUX pays a better dividend. On top of this 1SBUX pays more dividend than 80.65% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 1SBUX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 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%.