STARBUCKS CORP (SBUX) Stock Fundamental Analysis
USA - NASDAQ:SBUX - US8552441094 - Common Stock
80.96 USD
+0.09 (+0.11%)
81.2506 USD
+0.29 (+0.36%)
Taking everything into account, SBUX scores 5 out of 10 in our fundamental rating. SBUX was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. While SBUX is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
SBUX had a positive operating cash flow in the past year.
SBUX had positive earnings in each of the past 5 years.
SBUX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SBUX (5.80%) is better than 71.97% of its industry peers.
The Return On Invested Capital of SBUX (12.29%) is better than 78.79% 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 10.77%.
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 has a Profit Margin (4.99%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SBUX has grown nicely.
Looking at the Operating Margin, with a value of 9.63%, SBUX is in line with its industry, outperforming 53.03% of the companies in the same industry.
SBUX's Operating Margin has improved in the last couple of years.
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
SBUX has less shares outstanding than it did 5 years ago.
SBUX has a worse debt/assets ratio than last year.
2.2 Solvency
SBUX has an Altman-Z score of 2.44. 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.
Looking at the Altman-Z score, with a value of 2.44, SBUX is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
SBUX has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as SBUX would need 6.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.58, SBUX is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.56
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.72 indicates that SBUX may have some problems paying 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.
With a Quick ratio value of 0.51, SBUX is not doing good in the industry: 71.97% of the companies in the same industry are doing better.
| 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%.
Measured over the past years, SBUX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.96% on average per year.
Looking at the last year, SBUX shows a small growth in Revenue. The Revenue has grown by 2.79% in the last year.
Measured over the past years, SBUX shows a quite strong growth in Revenue. The Revenue has been growing by 9.60% on average per year.
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
SBUX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.22% yearly.
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 Y14.12%
EPS Next 2Y18.81%
EPS Next 3Y19.38%
EPS Next 5Y25.22%
Revenue Next Year4.39%
Revenue Next 2Y5.71%
Revenue Next 3Y5.85%
Revenue Next 5Y10.08%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.30 indicates a quite expensive valuation of SBUX.
SBUX's Price/Earnings is on the same level as the industry average.
SBUX is valuated rather expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 31.81, SBUX can be considered very expensive at the moment.
SBUX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SBUX to the average of the S&P500 Index (22.53), we can say SBUX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 31.81 |
4.2 Price Multiples
SBUX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SBUX is more expensive than 70.45% of the companies in the same industry.
SBUX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.69 | ||
| EV/EBITDA | 19.48 |
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.
The decent profitability rating of SBUX may justify a higher PE ratio.
A more expensive valuation may be justified as SBUX's earnings are expected to grow with 19.38% in the coming years.
PEG (NY)2.57
PEG (5Y)2.6
EPS Next 2Y18.81%
EPS Next 3Y19.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, SBUX has a reasonable but not impressive dividend return.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 4.12. SBUX pays more dividend than 84.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SBUX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of SBUX is nicely growing with an annual growth rate of 8.39%!
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)8.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SBUX pays out 149.29% of its income as dividend. 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 2Y18.81%
EPS Next 3Y19.38%
80.96
+0.09 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change-1.26%
Ins Owners0.06%
Ins Owner Change-0.23%
Market Cap92.03B
Revenue(TTM)37.18B
Net Income(TTM)1.86B
Analysts71.06
Price Target97.41 (20.32%)
Short Float %3.49%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)-2.47%
PT rev (3m)2.61%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-1.89%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-10.64%
Revenue NQ rev (1m)-1.71%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 31.81 | ||
| P/S | 2.47 | ||
| P/FCF | 37.69 | ||
| P/OCF | 19.38 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.48 |
EPS(TTM)2.23
EY2.75%
EPS(NY)2.54
Fwd EY3.14%
FCF(TTM)2.15
FCFY2.65%
OCF(TTM)4.18
OCFY5.16%
SpS32.71
BVpS-7.12
TBVpS-10.23
PEG (NY)2.57
PEG (5Y)2.6
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 | 2.44 |
F-Score5
WACC7.88%
ROIC/WACC1.56
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 Y14.12%
EPS Next 2Y18.81%
EPS Next 3Y19.38%
EPS Next 5Y25.22%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.46%
Revenue Next Year4.39%
Revenue Next 2Y5.71%
Revenue Next 3Y5.85%
Revenue Next 5Y10.08%
EBIT growth 1Y-30.21%
EBIT growth 3Y-7.09%
EBIT growth 5Y17.82%
EBIT Next Year66.32%
EBIT Next 3Y26.85%
EBIT Next 5Y26.73%
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 14.12% in the next year.
Can you provide the dividend sustainability for SBUX stock?
The dividend rating of STARBUCKS CORP (SBUX) is 5 / 10 and the dividend payout ratio is 149.29%.