STARBUCKS CORP (1SBUX.MI) Stock Fundamental Analysis
BIT:1SBUX - Euronext Milan - US8552441094 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1SBUX. 1SBUX was compared to 55 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of 1SBUX get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, 1SBUX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1SBUX was profitable.
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
With an excellent Return On Assets value of 9.89%, 1SBUX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
1SBUX has a better Return On Invested Capital (15.79%) than 85.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1SBUX is significantly above the industry average of 11.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | N/A | ||
| ROIC | 15.79% |
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
1SBUX has a better Profit Margin (8.61%) than 68.33% of its industry peers.
In the last couple of years the Profit Margin of 1SBUX has declined.
1SBUX's Operating Margin of 12.12% is fine compared to the rest of the industry. 1SBUX outperforms 63.33% of its industry peers.
1SBUX's Operating Margin has been stable in the last couple of years.
1SBUX has a Gross Margin of 25.03%. This is in the lower half of the industry: 1SBUX underperforms 63.33% 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 | 12.12% | ||
| PM (TTM) | 8.61% | ||
| GM | 25.03% |
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.
1SBUX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1SBUX has been reduced compared to a year ago.
2.2 Solvency
1SBUX has an Altman-Z score of 2.59. 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.
With a decent Altman-Z score value of 2.59, 1SBUX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of 1SBUX is 5.63, which is a neutral value as it means it would take 1SBUX, 5.63 years of fcf income to pay off all of its debts.
1SBUX has a better Debt to FCF ratio (5.63) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.86
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.64 indicates that 1SBUX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, 1SBUX is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that 1SBUX may have some problems paying its short term obligations.
The Quick ratio of 1SBUX (0.45) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
1SBUX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.25%.
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.
Looking at the last year, 1SBUX shows a decrease in Revenue. The Revenue has decreased by -0.50% in the last year.
1SBUX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.42% yearly.
EPS 1Y (TTM)-22.25%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-39.71%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%2.32%
3.2 Future
The Earnings Per Share is expected to grow by 14.35% on average over the next years. This is quite good.
Based on estimates for the next years, 1SBUX will show a small growth in Revenue. The Revenue will grow by 7.83% on average per year.
EPS Next Y-24.96%
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
EPS Next 5Y14.35%
Revenue Next Year1.01%
Revenue Next 2Y3.55%
Revenue Next 3Y4.92%
Revenue Next 5Y7.83%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1SBUX is valuated quite expensively with a Price/Earnings ratio of 29.55.
The rest of the industry has a similar Price/Earnings ratio as 1SBUX.
Compared to an average S&P500 Price/Earnings ratio of 27.45, 1SBUX is valued at the same level.
With a Price/Forward Earnings ratio of 27.80, 1SBUX can be considered very expensive at the moment.
1SBUX's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, 1SBUX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 27.8 |
4.2 Price Multiples
1SBUX's Enterprise Value to EBITDA ratio is in line with the industry average.
1SBUX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1SBUX is more expensive than 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.43 | ||
| EV/EBITDA | 17.67 |
4.3 Compensation for Growth
The decent profitability rating of 1SBUX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.98
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
5. Dividend
5.1 Amount
1SBUX has a Yearly Dividend Yield of 2.90%. 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 3.22. 1SBUX pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1SBUX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of 1SBUX is nicely growing with an annual growth rate of 9.97%!
Dividend Growth(5Y)9.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1SBUX pays out 85.54% 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.
DP85.54%
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
BIT:1SBUX (5/22/2025, 7:00:00 PM)
73.88
-3.23 (-4.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.28%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap83.96B
Analysts71.11
Price Target83.61 (13.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend2
Dividend Growth(5Y)9.97%
DP85.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.05%
Min EPS beat(2)-17.35%
Max EPS beat(2)1.24%
EPS beat(4)1
Avg EPS beat(4)-10.54%
Min EPS beat(4)-23.71%
Max EPS beat(4)1.24%
EPS beat(8)3
Avg EPS beat(8)-6.69%
EPS beat(12)6
Avg EPS beat(12)-2.25%
EPS beat(16)7
Avg EPS beat(16)-0.95%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-0.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)-0.99%
Revenue beat(8)0
Avg Revenue beat(8)-3.48%
Revenue beat(12)1
Avg Revenue beat(12)-2.58%
Revenue beat(16)2
Avg Revenue beat(16)-2.19%
PT rev (1m)-16.76%
PT rev (3m)-15.9%
EPS NQ rev (1m)-25.48%
EPS NQ rev (3m)-26.49%
EPS NY rev (1m)-16.55%
EPS NY rev (3m)-17.71%
Revenue NQ rev (1m)-3.01%
Revenue NQ rev (3m)-3.18%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 27.8 | ||
| P/S | 2.62 | ||
| P/FCF | 34.43 | ||
| P/OCF | 17.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.67 |
EPS(TTM)2.5
EY3.38%
EPS(NY)2.66
Fwd EY3.6%
FCF(TTM)2.15
FCFY2.9%
OCF(TTM)4.32
OCFY5.85%
SpS28.21
BVpS-5.92
TBVpS-8.63
PEG (NY)N/A
PEG (5Y)7.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | N/A | ||
| ROCE | 20.77% | ||
| ROIC | 15.79% | ||
| ROICexc | 18.4% | ||
| ROICexgc | 22.78% | ||
| OM | 12.12% | ||
| PM (TTM) | 8.61% | ||
| GM | 25.03% | ||
| FCFM | 7.61% |
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-Score4
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.63 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 167.31% | ||
| Cap/Sales | 7.72% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 91.61% | ||
| Profit Quality | 88.37% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 2.59 |
F-Score4
WACC8.49%
ROIC/WACC1.86
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)-22.25%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-39.71%
EPS Next Y-24.96%
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
EPS Next 5Y14.35%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%2.32%
Revenue Next Year1.01%
Revenue Next 2Y3.55%
Revenue Next 3Y4.92%
Revenue Next 5Y7.83%
EBIT growth 1Y-21.25%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year0.44%
EBIT Next 3Y10.12%
EBIT Next 5Y15.52%
FCF growth 1Y0.41%
FCF growth 3Y-9.78%
FCF growth 5Y0.48%
OCF growth 1Y17.87%
OCF growth 3Y0.59%
OCF growth 5Y3.85%