STARBUCKS CORP (SBUX)
US8552441094 - Common Stock
SBUX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while 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.
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 better Return On Assets (12.00%) than 88.81% of its industry peers.
With an excellent Return On Invested Capital value of 17.52%, SBUX belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBUX is significantly above the industry average of 10.50%.
| 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
SBUX's Profit Margin of 10.40% is fine compared to the rest of the industry. SBUX outperforms 73.88% of its industry peers.
In the last couple of years the Profit Margin of SBUX has declined.
With a decent Operating Margin value of 14.18%, SBUX is doing good in the industry, outperforming 64.93% of the companies in the same industry.
SBUX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 26.90%, SBUX is not doing good in the industry: 81.34% of the companies in the same industry are doing better.
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
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 less shares outstanding
The number of shares outstanding for SBUX has been reduced compared to 5 years ago.
SBUX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.84 indicates that SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, SBUX is in the better half of the industry, outperforming 74.63% 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.
With a decent Debt to FCF ratio value of 4.69, SBUX is doing good in the industry, outperforming 75.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 2.84 |
ROIC/WACC2.1
WACC8.35%
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.
The Current ratio of SBUX (0.75) is worse than 61.19% 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. SBUX is outperformed by 67.16% of its industry peers.
| 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%.
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)-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
Based on estimates for the next years, SBUX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.41% on average per year.
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-3.47%
EPS Next 2Y7.09%
EPS Next 3Y10.8%
EPS Next 5Y14.41%
Revenue Next Year2.39%
Revenue Next 2Y4.64%
Revenue Next 3Y5.98%
Revenue Next 5Y7.99%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.58, the valuation of SBUX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SBUX.
Compared to an average S&P500 Price/Earnings ratio of 27.73, SBUX is valued at the same level.
With a Price/Forward Earnings ratio of 27.53, SBUX can be considered very expensive at the moment.
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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 27.53 |
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 61.94% of the companies listed in the same industry.
SBUX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SBUX is cheaper than 62.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.06 | ||
| EV/EBITDA | 16.72 |
4.3 Compensation for Growth
The decent profitability rating of SBUX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.18
EPS Next 2Y7.09%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.75%.
Compared to an average industry Dividend Yield of 2.89, SBUX pays a better dividend. On top of this SBUX pays more dividend than 84.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SBUX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
On average, the dividend of SBUX grows each year by 9.97%, which is quite nice.
SBUX has been paying a dividend for at least 10 years, so it has 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
68.74% 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.
DP68.74%
EPS Next 2Y7.09%
EPS Next 3Y10.8%
STARBUCKS CORP
NASDAQ:SBUX (12/20/2024, 8:00:01 PM)
After market: 88.03 +0.06 (+0.07%)87.97
-0.79 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner Change4.29%
Ins Owners0.11%
Ins Owner Change2.01%
Market Cap99.74B
Analysts71.82
Price Target103.75 (17.94%)
Short Float %2.86%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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)3.19%
PT rev (3m)7.02%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-30.94%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-21.05%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-7.14%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 27.53 | ||
| P/S | 2.76 | ||
| P/FCF | 30.06 | ||
| P/OCF | 16.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.72 |
EPS(TTM)3.31
EY3.76%
EPS(NY)3.2
Fwd EY3.63%
FCF(TTM)2.93
FCFY3.33%
OCF(TTM)5.38
OCFY6.11%
SpS31.91
BVpS-6.57
TBVpS-9.58
PEG (NY)N/A
PEG (5Y)7.18
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 | 2.84 |
F-Score5
WACC8.35%
ROIC/WACC2.1
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-3.47%
EPS Next 2Y7.09%
EPS Next 3Y10.8%
EPS Next 5Y14.41%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%-3.2%
Revenue Next Year2.39%
Revenue Next 2Y4.64%
Revenue Next 3Y5.98%
Revenue Next 5Y7.99%
EBIT growth 1Y-7.15%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year17.55%
EBIT Next 3Y15.67%
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%