STARBUCKS CORP (SBUX)
US8552441094 - Common Stock
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 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.
SBUX had positive earnings in each of the past 5 years.
In the past 5 years SBUX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.00%, SBUX belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
SBUX has a better Return On Invested Capital (17.44%) than 88.81% 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 10.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | N/A | ||
| ROIC | 17.44% |
ROA(3y)12.58%
ROA(5y)10.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.72%
ROIC(5y)15.38%
1.3 Margins
Looking at the Profit Margin, with a value of 10.40%, SBUX is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
In the last couple of years the Profit Margin of SBUX has declined.
The Operating Margin of SBUX (14.12%) is better than 64.93% of its industry peers.
In the last couple of years the Operating Margin of SBUX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 26.84%, SBUX is doing worse than 79.85% of the companies in the same industry.
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 | 14.12% | ||
| PM (TTM) | 10.4% | ||
| GM | 26.84% |
OM growth 3Y-4.44%
OM growth 5Y-0.9%
PM growth 3Y-10.39%
PM growth 5Y-5.2%
GM growth 3Y-2.58%
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SBUX is creating value.
Compared to 1 year ago, SBUX has less shares outstanding
SBUX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SBUX has been reduced compared to a year ago.
2.2 Solvency
SBUX has an Altman-Z score of 3.00. This indicates that SBUX is financially healthy and has little risk of bankruptcy at the moment.
SBUX has a better Altman-Z score (3.00) than 78.36% of its industry peers.
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 has a Debt to FCF ratio of 4.69. This is in the better half of the industry: SBUX outperforms 78.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 3 |
ROIC/WACC2.1
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.75 indicates that SBUX may have some problems paying its short term obligations.
SBUX has a Current ratio of 0.75. This is in the lower half of the industry: SBUX underperforms 61.94% of its industry peers.
A Quick Ratio of 0.56 indicates that SBUX may have some problems paying its short term obligations.
SBUX has a Quick ratio of 0.56. This is in the lower half of the industry: SBUX underperforms 68.66% 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.
Looking at the last year, SBUX shows a small growth in Revenue. The Revenue has grown by 0.56% in the last year.
The Revenue has been growing slightly by 6.42% on average over the past years.
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 17.51% on average per year.
SBUX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
EPS Next Y-3.72%
EPS Next 2Y7.11%
EPS Next 3Y10.8%
EPS Next 5Y17.51%
Revenue Next Year2.24%
Revenue Next 2Y4.55%
Revenue Next 3Y6.19%
Revenue Next 5Y8.55%
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
SBUX is valuated quite expensively with a Price/Earnings ratio of 30.33.
SBUX's Price/Earnings ratio is in line with the industry average.
SBUX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.65.
SBUX is valuated quite expensively with a Price/Forward Earnings ratio of 31.51.
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 23.50, SBUX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.33 | ||
| Fwd PE | 31.51 |
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 65.67% of the companies listed in the same industry.
SBUX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.3 | ||
| EV/EBITDA | 18.41 |
4.3 Compensation for Growth
SBUX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.2
EPS Next 2Y7.11%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.46%, SBUX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.82, 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 2.22, SBUX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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.
Dividend Growth(5Y)9.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
68.73% 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.
DP68.73%
EPS Next 2Y7.11%
EPS Next 3Y10.8%
STARBUCKS CORP
NASDAQ:SBUX (11/18/2024, 8:00:01 PM)
After market: 100.36 -0.04 (-0.04%)100.4
+1.98 (+2.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap113.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.33 | ||
| Fwd PE | 31.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)8.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.12% | ||
| PM (TTM) | 10.4% | ||
| GM | 26.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.76%
EPS 3Y0.72%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.56%
Revenue growth 3Y7.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y