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. While 1SBUX is still in line with the averages on profitability rating, there are concerns on its financial health. 1SBUX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1SBUX was profitable.
- 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 has a better Return On Assets (5.80%) than 66.13% of its industry peers.
- 1SBUX has a Return On Invested Capital of 12.29%. This is in the better half of the industry: 1SBUX outperforms 72.58% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 4.99%, 1SBUX is in line with its industry, outperforming 48.39% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1SBUX has grown nicely.
- 1SBUX has a Operating Margin (9.63%) which is in line with its industry peers.
- 1SBUX's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 22.77%, 1SBUX is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
- 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.
- The number of shares outstanding for 1SBUX has been increased compared to 1 year ago.
- Compared to 5 years ago, 1SBUX has less shares outstanding
- 1SBUX has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.68 indicates that 1SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1SBUX has a Altman-Z score of 2.68. This is in the better half of the industry: 1SBUX outperforms 69.35% 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'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 | 2.68 |
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.
- The Current ratio of 1SBUX (0.72) is worse than 62.90% 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 67.74% of its industry peers.
| 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.
- 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
- The Earnings Per Share is expected to grow by 25.22% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
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
- 1SBUX is valuated quite expensively with a Price/Earnings ratio of 42.52.
- Compared to the rest of the industry, the Price/Earnings ratio of 1SBUX is on the same level as its industry peers.
- 1SBUX is valuated rather expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 39.13, the valuation of 1SBUX can be described as expensive.
- 1SBUX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1SBUX is more expensive than 61.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. 1SBUX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.52 | ||
| Fwd PE | 39.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1SBUX is valued a bit more expensive than 64.52% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1SBUX is valued a bit more expensive than 69.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.17 | ||
| EV/EBITDA | 22.46 |
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.
- 1SBUX's earnings are expected to grow with 17.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.89
PEG (5Y)3.04
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 1.36, 1SBUX pays a better dividend. On top of this 1SBUX pays more dividend than 80.65% of the companies listed in the same industry.
- 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
- 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%.