86.7 USD
+0.79 (+0.92%)
86.69 USD
-0.01 (-0.01%)
Overall SBUX gets a fundamental rating of 5 out of 10. We evaluated SBUX against 132 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
SBUX has a Return On Assets of 5.80%. This is in the better half of the industry: SBUX outperforms 71.97% of its industry peers.
With a decent Return On Invested Capital value of 12.29%, SBUX is doing good in the industry, outperforming 78.03% 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 10.41%.
The 3 year average ROIC (16.70%) for SBUX is well above the current ROIC(12.29%). The reason for the recent decline needs to be investigated.
| 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 56.06% 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.
SBUX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 22.77%, SBUX is doing worse than 82.58% of the companies in the same industry.
SBUX's Gross Margin has been stable in the last couple of years.
| 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.
SBUX has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.54 indicates that SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.54, SBUX is doing good in the industry, outperforming 68.94% 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.
The Debt to FCF ratio of SBUX (6.58) is better than 71.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.57
WACC7.83%
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.
SBUX has a Current ratio of 0.72. This is in the lower half of the industry: SBUX underperforms 62.88% of its industry peers.
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: 71.21% 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
The earnings per share for SBUX have decreased strongly by -32.63% in the last year.
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.
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
SBUX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.22% yearly.
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y14.12%
EPS Next 2Y18.81%
EPS Next 3Y19.44%
EPS Next 5Y25.22%
Revenue Next Year4.39%
Revenue Next 2Y5.71%
Revenue Next 3Y5.84%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.88, which means the current valuation is very expensive for SBUX.
SBUX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SBUX to the average of the S&P500 Index (26.15), we can say SBUX is valued slightly more expensively.
The Price/Forward Earnings ratio is 34.07, which means the current valuation is very expensive for SBUX.
SBUX's Price/Forward Earnings ratio is in line with the industry average.
SBUX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.88 | ||
| Fwd PE | 34.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBUX is valued a bit more expensive than 71.21% of the companies in the same industry.
SBUX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.36 | ||
| EV/EBITDA | 20.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SBUX may justify a higher PE ratio.
SBUX's earnings are expected to grow with 19.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.75
PEG (5Y)2.78
EPS Next 2Y18.81%
EPS Next 3Y19.44%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 3.00%.
Compared to an average industry Dividend Yield of 6.38, SBUX pays a better dividend. On top of this SBUX pays more dividend than 82.58% of the companies listed in the same industry.
SBUX's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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.
The dividend of SBUX decreased 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.
The dividend of SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP149.29%
EPS Next 2Y18.81%
EPS Next 3Y19.44%
86.7
+0.79 (+0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change-2.85%
Ins Owners0.06%
Ins Owner Change0.6%
Market Cap98.55B
Revenue(TTM)37.18B
Net Income(TTM)1.86B
Analysts71.06
Price Target95.87 (10.58%)
Short Float %3.36%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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)-3.76%
PT rev (3m)-4.02%
EPS NQ rev (1m)-11.66%
EPS NQ rev (3m)-11.95%
EPS NY rev (1m)-5.36%
EPS NY rev (3m)-6.87%
Revenue NQ rev (1m)-2.05%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.88 | ||
| Fwd PE | 34.07 | ||
| P/S | 2.65 | ||
| P/FCF | 40.36 | ||
| P/OCF | 20.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.72 |
EPS(TTM)2.23
EY2.57%
EPS(NY)2.54
Fwd EY2.94%
FCF(TTM)2.15
FCFY2.48%
OCF(TTM)4.18
OCFY4.82%
SpS32.71
BVpS-7.12
TBVpS-10.23
PEG (NY)2.75
PEG (5Y)2.78
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 | 2.54 |
F-Score5
WACC7.83%
ROIC/WACC1.57
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 3Y19.44%
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 3Y5.84%
Revenue Next 5Y10.08%
EBIT growth 1Y-30.21%
EBIT growth 3Y-7.09%
EBIT growth 5Y17.82%
EBIT Next Year66.32%
EBIT Next 3Y25.93%
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%.