STARBUCKS CORP (SBUX) Stock Fundamental Analysis
NASDAQ:SBUX - Nasdaq - US8552441094 - Common Stock
We assign a fundamental rating of 4 out of 10 to SBUX. SBUX was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of SBUX get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years SBUX always reported a positive cash flow from operatings.
1.2 Ratios
SBUX has a Return On Assets of 12.00%. This is amongst the best in the industry. SBUX outperforms 88.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.52%, SBUX belongs to the top of the industry, outperforming 87.79% of the companies in the same industry.
SBUX had an Average Return On Invested Capital over the past 3 years of 18.75%. This is significantly above the industry average of 10.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | N/A | ||
| ROIC | 17.52% |
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
Looking at the Profit Margin, with a value of 10.40%, SBUX is in the better half of the industry, outperforming 73.28% of the companies in the same industry.
In the last couple of years the Profit Margin of SBUX has declined.
SBUX has a Operating Margin of 14.18%. This is in the better half of the industry: SBUX outperforms 64.12% of its industry peers.
SBUX's Operating Margin has been stable in the last couple of years.
SBUX has a worse Gross Margin (26.90%) than 80.92% of its industry peers.
SBUX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.18% | ||
| PM (TTM) | 10.4% | ||
| GM | 26.9% |
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
SBUX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SBUX has been reduced compared to 1 year ago.
The number of shares outstanding for SBUX has been reduced compared to 5 years ago.
The debt/assets ratio for SBUX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.00 indicates that SBUX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.00, SBUX is doing good in the industry, outperforming 75.57% of the companies in the same industry.
The Debt to FCF ratio of SBUX is 4.69, which is a neutral value as it means it would take SBUX, 4.69 years of fcf income to pay off all of its debts.
SBUX's Debt to FCF ratio of 4.69 is fine compared to the rest of the industry. SBUX outperforms 75.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 3 |
ROIC/WACC2.07
WACC8.46%
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.
With a Current ratio value of 0.75, SBUX is not doing good in the industry: 61.07% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that SBUX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, SBUX is doing worse than 66.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for SBUX have decreased by -6.76% 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 small growth in Revenue. In the last year, the Revenue has grown by 0.56%.
SBUX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.42% yearly.
EPS 1Y (TTM)-6.76%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-24.53%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%-3.2%
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 14.41% yearly.
Based on estimates for the next years, SBUX will show a small growth in Revenue. The Revenue will grow by 7.99% on average per year.
EPS Next Y-3.9%
EPS Next 2Y7.07%
EPS Next 3Y10.7%
EPS Next 5Y14.41%
Revenue Next Year2.14%
Revenue Next 2Y4.49%
Revenue Next 3Y6.08%
Revenue Next 5Y7.99%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.60, SBUX can be considered very expensive at the moment.
SBUX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. SBUX is around the same levels.
The Price/Forward Earnings ratio is 30.80, which means the current valuation is very expensive for SBUX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBUX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, SBUX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.6 | ||
| Fwd PE | 30.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SBUX indicates a slightly more expensive valuation: SBUX is more expensive than 64.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SBUX is valued a bit cheaper than the industry average as 60.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.48 | ||
| EV/EBITDA | 18.27 |
4.3 Compensation for Growth
The decent profitability rating of SBUX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8
EPS Next 2Y7.07%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 2.98. SBUX pays more dividend than 83.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SBUX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of SBUX is nicely growing with an annual growth rate of 9.97%!
SBUX has been paying a dividend for at least 10 years, so it has a reliable track record.
SBUX has decreased its dividend recently.
Dividend Growth(5Y)9.97%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SBUX pays out 68.74% 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.
DP68.74%
EPS Next 2Y7.07%
EPS Next 3Y10.7%
STARBUCKS CORP
NASDAQ:SBUX (1/21/2025, 8:25:40 PM)
After market: 97.61 -0.37 (-0.38%)97.98
+2.85 (+3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner Change-0.22%
Ins Owners0.11%
Ins Owner Change2.01%
Market Cap111.09B
Analysts71.36
Price Target104.11 (6.26%)
Short Float %2.53%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend2.27
Dividend Growth(5Y)9.97%
DP68.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.03%
Min EPS beat(2)-23.71%
Max EPS beat(2)-2.36%
EPS beat(4)0
Avg EPS beat(4)-11.82%
Min EPS beat(4)-23.71%
Max EPS beat(4)-2.36%
EPS beat(8)3
Avg EPS beat(8)-3.78%
EPS beat(12)5
Avg EPS beat(12)-2.06%
EPS beat(16)8
Avg EPS beat(16)1.49%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-3.32%
Revenue beat(4)0
Avg Revenue beat(4)-4.99%
Min Revenue beat(4)-8.04%
Max Revenue beat(4)-3.32%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-2.46%
Revenue beat(16)2
Avg Revenue beat(16)-2.51%
PT rev (1m)0.35%
PT rev (3m)6.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.14%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.6 | ||
| Fwd PE | 30.8 | ||
| P/S | 3.07 | ||
| P/FCF | 33.48 | ||
| P/OCF | 18.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.27 |
EPS(TTM)3.31
EY3.38%
EPS(NY)3.18
Fwd EY3.25%
FCF(TTM)2.93
FCFY2.99%
OCF(TTM)5.38
OCFY5.49%
SpS31.91
BVpS-6.57
TBVpS-9.58
PEG (NY)N/A
PEG (5Y)8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | N/A | ||
| ROCE | 23.04% | ||
| ROIC | 17.52% | ||
| ROICexc | 20.83% | ||
| ROICexgc | 25.48% | ||
| OM | 14.18% | ||
| PM (TTM) | 10.4% | ||
| GM | 26.9% | ||
| FCFM | 9.17% |
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 174.42% | ||
| Cap/Sales | 7.68% | ||
| Interest Coverage | 8.99 | ||
| Cash Conversion | 90.67% | ||
| Profit Quality | 88.23% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3 |
F-Score5
WACC8.46%
ROIC/WACC2.07
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)-6.76%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-24.53%
EPS Next Y-3.9%
EPS Next 2Y7.07%
EPS Next 3Y10.7%
EPS Next 5Y14.41%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%-3.2%
Revenue Next Year2.14%
Revenue Next 2Y4.49%
Revenue Next 3Y6.08%
Revenue Next 5Y7.99%
EBIT growth 1Y-7.15%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year17.45%
EBIT Next 3Y15.23%
EBIT Next 5Y16.07%
FCF growth 1Y-9.71%
FCF growth 3Y-9.78%
FCF growth 5Y0.48%
OCF growth 1Y1.45%
OCF growth 3Y0.59%
OCF growth 5Y3.85%