85.4 USD
+0.05 (+0.06%)
85.5 USD
+0.1 (+0.12%)
Overall SBUX gets a fundamental rating of 5 out of 10. We evaluated SBUX against 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of SBUX while its profitability can be described as average. While showing a medium growth rate, SBUX is valued expensive at the moment.
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.
Each year in the past 5 years SBUX has 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 5.80%. This is in the better half of the industry: SBUX outperforms 71.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.29%, SBUX is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SBUX is significantly above the industry average of 10.42%.
The last Return On Invested Capital (12.29%) for SBUX is well below the 3 year average (16.70%), which needs to be investigated, but indicates that SBUX 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
SBUX's Profit Margin of 4.99% is in line compared to the rest of the industry. SBUX outperforms 55.30% of its industry peers.
In the last couple of years the Profit Margin of SBUX has grown nicely.
The Operating Margin of SBUX (9.63%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SBUX has grown nicely.
SBUX has a worse Gross Margin (22.77%) than 83.33% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SBUX is creating value.
Compared to 1 year ago, SBUX has more shares outstanding
The number of shares outstanding for SBUX has been reduced compared to 5 years ago.
The debt/assets ratio for SBUX is higher compared to a year ago.
2.2 Solvency
SBUX has an Altman-Z score of 2.52. This is not the best score and indicates that SBUX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.52, SBUX is doing good in the industry, outperforming 67.42% of the companies in the same industry.
The Debt to FCF ratio of SBUX is 6.58, which is on the high side as it means it would take SBUX, 6.58 years of fcf income to pay off all of its debts.
SBUX's Debt to FCF ratio of 6.58 is fine compared to the rest of the industry. SBUX outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.52
WACC8.07%
2.3 Liquidity
SBUX has a Current Ratio of 0.72. 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 0.72, SBUX is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that SBUX may have some problems paying its short term obligations.
SBUX has a Quick ratio of 0.51. This is in the lower half of the industry: SBUX underperforms 71.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
SBUX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.63%.
SBUX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.96% yearly.
The Revenue has been growing slightly by 2.79% in the past year.
The Revenue has been growing by 9.60% on average over the past years. This is quite good.
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
Based on estimates for the next years, SBUX will show a very strong growth in Earnings Per Share. The EPS will grow by 25.22% on average per year.
Based on estimates for the next years, SBUX will show a quite strong growth in Revenue. The Revenue will grow by 10.08% on average per year.
EPS Next Y9.44%
EPS Next 2Y17.42%
EPS Next 3Y18.01%
EPS Next 5Y25.22%
Revenue Next Year3.38%
Revenue Next 2Y5.21%
Revenue Next 3Y5.33%
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
Based on the Price/Earnings ratio of 38.30, the valuation of SBUX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SBUX.
When comparing the Price/Earnings ratio of SBUX to the average of the S&P500 Index (26.55), we can say SBUX is valued slightly more expensively.
SBUX is valuated quite expensively with a Price/Forward Earnings ratio of 34.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBUX is on the same level as its industry peers.
SBUX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.3 | ||
| Fwd PE | 34.99 |
4.2 Price Multiples
71.21% of the companies in the same industry are cheaper than SBUX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBUX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.77 | ||
| EV/EBITDA | 20.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SBUX does not grow enough to justify the current Price/Earnings ratio.
SBUX has a very decent profitability rating, which may justify a higher PE ratio.
SBUX's earnings are expected to grow with 18.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.06
PEG (5Y)2.74
EPS Next 2Y17.42%
EPS Next 3Y18.01%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.48, SBUX pays a better dividend. On top of this SBUX pays more dividend than 84.85% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SBUX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
On average, the dividend of SBUX grows each year by 8.39%, which is quite nice.
SBUX has paid a dividend for at least 10 years, which is a reliable track record.
SBUX has decreased its dividend recently.
Dividend Growth(5Y)8.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
149.29% of the earnings are spent on dividend by SBUX. This is not a sustainable payout ratio.
SBUX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP149.29%
EPS Next 2Y17.42%
EPS Next 3Y18.01%
85.4
+0.05 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.78%
Inst Owner Change-2.81%
Ins Owners0.07%
Ins Owner Change0.6%
Market Cap97.11B
Revenue(TTM)37.18B
Net Income(TTM)1.86B
Analysts71.3
Price Target95.94 (12.34%)
Short Float %3.95%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend2.44
Dividend Growth(5Y)8.39%
DP149.29%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.63%
Min EPS beat(2)-9.45%
Max EPS beat(2)-7.8%
EPS beat(4)1
Avg EPS beat(4)-8.34%
Min EPS beat(4)-17.35%
Max EPS beat(4)1.24%
EPS beat(8)1
Avg EPS beat(8)-10.08%
EPS beat(12)4
Avg EPS beat(12)-5.3%
EPS beat(16)6
Avg EPS beat(16)-3.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.34%
Revenue beat(8)1
Avg Revenue beat(8)-2.95%
Revenue beat(12)2
Avg Revenue beat(12)-2.4%
Revenue beat(16)2
Avg Revenue beat(16)-2.07%
PT rev (1m)-1.52%
PT rev (3m)-3.95%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-13.07%
EPS NY rev (1m)-4.1%
EPS NY rev (3m)-10.69%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.7%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.3 | ||
| Fwd PE | 34.99 | ||
| P/S | 2.61 | ||
| P/FCF | 39.77 | ||
| P/OCF | 20.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.45 |
EPS(TTM)2.23
EY2.61%
EPS(NY)2.44
Fwd EY2.86%
FCF(TTM)2.15
FCFY2.51%
OCF(TTM)4.18
OCFY4.89%
SpS32.7
BVpS-7.12
TBVpS-10.23
PEG (NY)4.06
PEG (5Y)2.74
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | N/A | ||
| ROCE | 16.42% | ||
| ROIC | 12.29% | ||
| ROICexc | 14.62% | ||
| ROICexgc | 18.11% | ||
| OM | 9.63% | ||
| PM (TTM) | 4.99% | ||
| GM | 22.77% | ||
| FCFM | 6.57% |
ROA(3y)10.6%
ROA(5y)11.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.7%
ROIC(5y)16.57%
ROICexc(3y)20.24%
ROICexc(5y)20.6%
ROICexgc(3y)25.14%
ROICexgc(5y)26.08%
ROCE(3y)22.32%
ROCE(5y)22.18%
ROICexgc growth 3Y-12.47%
ROICexgc growth 5Y15.97%
ROICexc growth 3Y-11.56%
ROICexc growth 5Y17.16%
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%
F-Score5
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 130.14% | ||
| Cap/Sales | 6.2% | ||
| Interest Coverage | 6.09 | ||
| Cash Conversion | 88.7% | ||
| Profit Quality | 131.54% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.52 |
F-Score5
WACC8.07%
ROIC/WACC1.52
Cap/Depr(3y)155.16%
Cap/Depr(5y)136.46%
Cap/Sales(3y)6.79%
Cap/Sales(5y)6.23%
Profit Quality(3y)102.96%
Profit Quality(5y)98.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.63%
EPS 3Y-9.01%
EPS 5Y13.96%
EPS Q2Q%-35%
EPS Next Y9.44%
EPS Next 2Y17.42%
EPS Next 3Y18.01%
EPS Next 5Y25.22%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.46%
Revenue Next Year3.38%
Revenue Next 2Y5.21%
Revenue Next 3Y5.33%
Revenue Next 5Y10.08%
EBIT growth 1Y-30.21%
EBIT growth 3Y-7.09%
EBIT growth 5Y17.82%
EBIT Next Year55.43%
EBIT Next 3Y26.49%
EBIT Next 5Y26.87%
FCF growth 1Y-26.4%
FCF growth 3Y-1.51%
FCF growth 5Y84.51%
OCF growth 1Y-22.12%
OCF growth 3Y2.59%
OCF growth 5Y24.33%
STARBUCKS CORP / SBUX FAQ
What is the fundamental rating for SBUX stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBUX.
Can you provide the valuation status for STARBUCKS CORP?
ChartMill assigns a valuation rating of 2 / 10 to STARBUCKS CORP (SBUX). This can be considered as Overvalued.
How profitable is STARBUCKS CORP (SBUX) stock?
STARBUCKS CORP (SBUX) has a profitability rating of 6 / 10.
What is the earnings growth outlook for STARBUCKS CORP?
The Earnings per Share (EPS) of STARBUCKS CORP (SBUX) is expected to grow by 9.44% in the next year.
Can you provide the dividend sustainability for SBUX stock?
The dividend rating of STARBUCKS CORP (SBUX) is 6 / 10 and the dividend payout ratio is 149.29%.