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Balancing Dividends and Fundamentals: The Case of NASDAQ:SBUX.

By Mill Chart

Last update: Jan 30, 2024

Our stock screening tool has identified STARBUCKS CORP (NASDAQ:SBUX) as a strong dividend contender with robust fundamentals. NASDAQ:SBUX exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

A Closer Look at Dividend for NASDAQ:SBUX

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NASDAQ:SBUX scores a 7 out of 10:

  • SBUX's Dividend Yield is rather good when compared to the industry average which is at 3.49. SBUX pays more dividend than 85.19% of the companies in the same industry.
  • On average, the dividend of SBUX grows each year by 10.79%, which is quite nice.
  • SBUX has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SBUX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
  • The dividend of SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for NASDAQ:SBUX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:SBUX was assigned a score of 5 for health:

  • An Altman-Z score of 3.12 indicates that SBUX is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.12, SBUX belongs to the best of the industry, outperforming 80.74% of the companies in the same industry.
  • The Debt to FCF ratio of SBUX (4.19) is better than 81.48% of its industry peers.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:SBUX, the assigned 6 is noteworthy for profitability:

  • The Return On Assets of SBUX (14.01%) is better than 90.37% of its industry peers.
  • SBUX has a Return On Invested Capital of 21.12%. This is amongst the best in the industry. SBUX outperforms 93.33% 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 10.24%.
  • The last Return On Invested Capital (21.12%) for SBUX is above the 3 year average (18.26%), which is a sign of increasing profitability.
  • With a decent Profit Margin value of 11.46%, SBUX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 15.36%, SBUX is in the better half of the industry, outperforming 67.41% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of SBUX

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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STARBUCKS CORP

NASDAQ:SBUX (5/21/2024, 7:00:02 PM)

After market: 77.63 -0.09 (-0.12%)

77.72

+0.18 (+0.23%)

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