STARBUCKS CORP (SBUX) Stock Fundamental Analysis
NASDAQ:SBUX - Nasdaq - US8552441094 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SBUX. SBUX was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has an average financial health and profitability rating. SBUX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBUX was profitable.
In the past year SBUX had a positive cash flow from operations.
In the past 5 years SBUX has always been profitable.
SBUX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SBUX's Return On Assets of 11.03% is amongst the best of the industry. SBUX outperforms 87.79% of its industry peers.
The Return On Invested Capital of SBUX (16.38%) is better than 84.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBUX is significantly above the industry average of 10.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.03% | ||
| ROE | N/A | ||
| ROIC | 16.38% |
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
SBUX has a better Profit Margin (9.73%) than 74.81% of its industry peers.
In the last couple of years the Profit Margin of SBUX has declined.
SBUX has a better Operating Margin (13.21%) than 61.83% of its industry peers.
In the last couple of years the Operating Margin of SBUX has remained more or less at the same level.
SBUX has a worse Gross Margin (26.11%) than 80.92% of its industry peers.
In the last couple of years the Gross Margin of SBUX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.21% | ||
| PM (TTM) | 9.73% | ||
| GM | 26.12% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SBUX is creating value.
SBUX has less shares outstanding than it did 1 year ago.
SBUX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SBUX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that SBUX is not in any danger for bankruptcy at the moment.
The Altman-Z score of SBUX (3.18) is better than 75.57% of its industry peers.
SBUX has a debt to FCF ratio of 5.35. This is a neutral value as SBUX would need 5.35 years to pay back of all of its debts.
SBUX has a better Debt to FCF ratio (5.35) than 74.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.79
WACC9.15%
2.3 Liquidity
SBUX has a Current Ratio of 0.75. This is a bad value and indicates that SBUX is not financially healthy enough and could expect problems in meeting its short term obligations.
SBUX has a Current ratio of 0.75. This is in the lower half of the industry: SBUX underperforms 61.07% of its industry peers.
SBUX has a Quick Ratio of 0.75. This is a bad value and indicates that SBUX is not financially healthy enough and could expect problems in meeting its short term obligations.
SBUX has a Quick ratio of 0.57. This is in the lower half of the industry: SBUX underperforms 67.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for SBUX have decreased strongly by -16.22% in the last year.
SBUX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.70% yearly.
SBUX shows a decrease in Revenue. In the last year, the revenue decreased by -1.47%.
Measured over the past years, SBUX shows a small growth in Revenue. The Revenue has been growing by 6.42% on average per year.
EPS 1Y (TTM)-16.22%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-23.33%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%-0.29%
3.2 Future
SBUX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.35% yearly.
The Revenue is expected to grow by 8.01% on average over the next years. This is quite good.
EPS Next Y-8.82%
EPS Next 2Y6.55%
EPS Next 3Y10.17%
EPS Next 5Y14.35%
Revenue Next Year2.88%
Revenue Next 2Y4.86%
Revenue Next 3Y5.9%
Revenue Next 5Y8.01%
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
SBUX is valuated quite expensively with a Price/Earnings ratio of 36.05.
SBUX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SBUX is valued a bit more expensive.
A Price/Forward Earnings ratio of 29.74 indicates a quite expensive valuation of SBUX.
SBUX's Price/Forward Earnings ratio is in line with the industry average.
SBUX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.05 | ||
| Fwd PE | 29.74 |
4.2 Price Multiples
SBUX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SBUX is more expensive than 68.70% of the companies in the same industry.
SBUX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.63 | ||
| EV/EBITDA | 21.83 |
4.3 Compensation for Growth
The decent profitability rating of SBUX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.74
EPS Next 2Y6.55%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.06, SBUX pays a better dividend. On top of this SBUX pays more dividend than 82.44% of the companies listed in the same industry.
SBUX's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of SBUX grows each year by 9.97%, which is quite nice.
SBUX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SBUX decreased recently.
Dividend Growth(5Y)9.97%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SBUX pays out 74.74% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.74%
EPS Next 2Y6.55%
EPS Next 3Y10.17%
111.75
-1.59 (-1.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner Change0.64%
Ins Owners0.11%
Ins Owner Change2.02%
Market Cap126.94B
Analysts70.91
Price Target104.9 (-6.13%)
Short Float %2.52%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend2.27
Dividend Growth(5Y)9.97%
DP74.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.23%
Min EPS beat(2)-23.71%
Max EPS beat(2)1.24%
EPS beat(4)1
Avg EPS beat(4)-10.23%
Min EPS beat(4)-23.71%
Max EPS beat(4)1.24%
EPS beat(8)4
Avg EPS beat(8)-3.05%
EPS beat(12)6
Avg EPS beat(12)-1.01%
EPS beat(16)8
Avg EPS beat(16)1.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-0.99%
Revenue beat(4)0
Avg Revenue beat(4)-4.33%
Min Revenue beat(4)-8.04%
Max Revenue beat(4)-0.99%
Revenue beat(8)1
Avg Revenue beat(8)-2.94%
Revenue beat(12)1
Avg Revenue beat(12)-2.48%
Revenue beat(16)2
Avg Revenue beat(16)-2.29%
PT rev (1m)0.76%
PT rev (3m)4.33%
EPS NQ rev (1m)-12.51%
EPS NQ rev (3m)-32.42%
EPS NY rev (1m)-5.11%
EPS NY rev (3m)-5.29%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)-4.63%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.05 | ||
| Fwd PE | 29.74 | ||
| P/S | 3.51 | ||
| P/FCF | 43.63 | ||
| P/OCF | 21.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.83 |
EPS(TTM)3.1
EY2.77%
EPS(NY)3.76
Fwd EY3.36%
FCF(TTM)2.56
FCFY2.29%
OCF(TTM)5.09
OCFY4.56%
SpS31.82
BVpS-6.58
TBVpS-9.62
PEG (NY)N/A
PEG (5Y)9.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.03% | ||
| ROE | N/A | ||
| ROCE | 21.55% | ||
| ROIC | 16.38% | ||
| ROICexc | 19.94% | ||
| ROICexgc | 24.62% | ||
| OM | 13.21% | ||
| PM (TTM) | 9.73% | ||
| GM | 26.12% | ||
| FCFM | 8.05% |
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-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 175.25% | ||
| Cap/Sales | 7.95% | ||
| Interest Coverage | 8.7 | ||
| Cash Conversion | 90.14% | ||
| Profit Quality | 82.71% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 3.18 |
F-Score5
WACC9.15%
ROIC/WACC1.79
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)-16.22%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-23.33%
EPS Next Y-8.82%
EPS Next 2Y6.55%
EPS Next 3Y10.17%
EPS Next 5Y14.35%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%-0.29%
Revenue Next Year2.88%
Revenue Next 2Y4.86%
Revenue Next 3Y5.9%
Revenue Next 5Y8.01%
EBIT growth 1Y-16.99%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year13.25%
EBIT Next 3Y14.8%
EBIT Next 5Y15.51%
FCF growth 1Y33.55%
FCF growth 3Y-9.78%
FCF growth 5Y0.48%
OCF growth 1Y40.39%
OCF growth 3Y0.59%
OCF growth 5Y3.85%