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. 1SBUX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- 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
- Looking at the Return On Assets, with a value of 5.80%, 1SBUX is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
- 1SBUX's Return On Invested Capital of 12.29% is fine compared to the rest of the industry. 1SBUX outperforms 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
- With a Profit Margin value of 4.99%, 1SBUX perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1SBUX has grown nicely.
- Looking at the Operating Margin, with a value of 9.63%, 1SBUX is in line with its industry, outperforming 49.18% of the companies in the same industry.
- 1SBUX's Operating Margin has improved in the last couple of years.
- 1SBUX has a worse Gross Margin (22.77%) 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
- 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
- 1SBUX has less shares outstanding than it did 5 years ago.
- 1SBUX has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.57 indicates that 1SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.57, 1SBUX is doing good in the industry, outperforming 70.49% of the companies in the same industry.
- 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 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.
- Looking at the Current ratio, with a value of 0.72, 1SBUX is doing worse than 60.66% of the companies in the same industry.
- 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.
- The Quick ratio of 1SBUX (0.51) is worse than 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%.
- 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
- 1SBUX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.22% yearly.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 41.41 indicates a quite expensive valuation of 1SBUX.
- 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 expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 38.10, the valuation of 1SBUX can be described as expensive.
- Based on the Price/Forward Earnings ratio, 1SBUX is valued a bit more expensive than the industry average as 62.30% of the companies are valued more cheaply.
- 1SBUX is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.41 | ||
| Fwd PE | 38.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1SBUX is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
- 67.21% of the companies in the same industry are cheaper than 1SBUX, based on the Price/Free Cash Flow ratio.
| 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.
- 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)4.76
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
- 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.
- The dividend of 1SBUX is growing, but earnings are growing more, so the dividend growth is 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%.