STARBUCKS CORP (1SBUX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SBUX - US8552441094 - Common Stock
79.51 EUR
+8.47 (+11.92%)
Taking everything into account, 1SBUX scores 4 out of 10 in our fundamental rating. 1SBUX was compared to 60 industry peers in the Hotels, Restaurants & Leisure industry. 1SBUX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- 1SBUX had a positive operating cash flow in the past year.
- In the past 5 years 1SBUX has always been profitable.
- Each year in the past 5 years 1SBUX had a positive operating cash flow.
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.
- 1SBUX has a better Return On Invested Capital (12.29%) than 72.13% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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 of 4.99%. This is comparable to the rest of the industry: 1SBUX outperforms 49.18% of its industry peers.
- 1SBUX's Profit Margin has improved in the last couple of years.
- 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.
- 1SBUX's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1SBUX (22.77%) is worse than 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
- 1SBUX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, 1SBUX has more shares outstanding
- Compared to 5 years ago, 1SBUX has less shares outstanding
- Compared to 1 year ago, 1SBUX has a worse debt to assets ratio.
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 Altman-Z score of 2.57. This is in the better half of the industry: 1SBUX outperforms 70.49% 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.
- With a Debt to FCF ratio value of 6.58, 1SBUX perfoms like the industry average, outperforming 52.46% of the companies in the same 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.
- 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: 67.21% 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
- 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.
- 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
- 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
- With a Price/Earnings ratio of 41.41, 1SBUX can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of 1SBUX is on the same level as its industry peers.
- 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.
- 62.30% 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 24.26. 1SBUX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.41 | ||
| Fwd PE | 38.1 |
4.2 Price Multiples
- 1SBUX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1SBUX is more expensive than 60.66% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1SBUX is valued a bit more expensive than the industry average as 67.21% of the companies are valued more cheaply.
| 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
- 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 1.29, 1SBUX pays a better dividend. On top of this 1SBUX pays more dividend than 80.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- 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%.