STARBUCKS CORP (SBUX)
US8552441094 - Common Stock
Overall SBUX gets a fundamental rating of 6 out of 10. We evaluated SBUX against 135 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has only an average score on both its financial health and profitability. SBUX is not overvalued while it is showing excellent growth. This is an interesting combination. SBUX also has an excellent dividend rating. These ratings could make SBUX a good candidate for dividend and growth investing.
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.
In the past 5 years SBUX has always been profitable.
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 14.71%, SBUX belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
SBUX has a Return On Invested Capital of 22.00%. This is amongst the best in the industry. SBUX outperforms 92.54% 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 10.33%.
The last Return On Invested Capital (22.00%) for SBUX is above the 3 year average (18.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.71% | ||
| ROE | N/A | ||
| ROIC | 22% |
ROA(3y)13.04%
ROA(5y)12.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.26%
ROIC(5y)16.66%
1.3 Margins
SBUX's Profit Margin of 11.70% is fine compared to the rest of the industry. SBUX outperforms 77.61% of its industry peers.
SBUX's Profit Margin has declined in the last couple of years.
SBUX has a better Operating Margin (15.69%) than 67.16% of its industry peers.
In the last couple of years the Operating Margin of SBUX has remained more or less at the same level.
SBUX has a Gross Margin of 27.87%. This is amonst the worse of the industry: SBUX underperforms 80.60% of its industry peers.
SBUX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.69% | ||
| PM (TTM) | 11.7% | ||
| GM | 27.87% |
OM growth 3Y31.83%
OM growth 5Y-0.05%
PM growth 3Y42.7%
PM growth 5Y-8.9%
GM growth 3Y8.02%
GM growth 5Y-1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SBUX is creating value.
The number of shares outstanding for SBUX has been reduced compared to 1 year ago.
The number of shares outstanding for SBUX has been reduced compared to 5 years ago.
Compared to 1 year ago, SBUX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.00 indicates that SBUX is not in any danger for bankruptcy at the moment.
SBUX's Altman-Z score of 3.00 is amongst the best of the industry. SBUX outperforms 80.60% of its industry peers.
The Debt to FCF ratio of SBUX is 3.42, which is a good value as it means it would take SBUX, 3.42 years of fcf income to pay off all of its debts.
SBUX has a Debt to FCF ratio of 3.42. This is in the better half of the industry: SBUX outperforms 79.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 3 |
ROIC/WACC2.58
WACC8.51%
2.3 Liquidity
SBUX has a Current Ratio of 0.70. 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 0.70. This is in the lower half of the industry: SBUX underperforms 67.91% of its industry peers.
SBUX has a Quick Ratio of 0.70. 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 Quick ratio of SBUX (0.52) is worse than 73.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
SBUX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.75%, which is quite impressive.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
The Revenue has grown by 11.46% in the past year. This is quite good.
SBUX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.79% yearly.
EPS 1Y (TTM)23.75%
EPS 3Y45.19%
EPS 5Y8.6%
EPS growth Q2Q20%
Revenue 1Y (TTM)11.46%
Revenue growth 3Y15.22%
Revenue growth 5Y7.79%
Revenue growth Q2Q8.16%
3.2 Future
SBUX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.77% yearly.
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y16.46%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
EPS Next 5Y17.77%
Revenue Next Year8.16%
Revenue Next 2Y8.92%
Revenue Next 3Y9.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SBUX is valuated rather expensively with a Price/Earnings ratio of 23.73.
The rest of the industry has a similar Price/Earnings ratio as SBUX.
The average S&P500 Price/Earnings ratio is at 25.25. SBUX is around the same levels.
The Price/Forward Earnings ratio is 18.26, which indicates a rather expensive current valuation of SBUX.
Based on the Price/Forward Earnings ratio, SBUX is valued a bit cheaper than the industry average as 67.16% of the companies are valued more expensively.
SBUX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 18.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SBUX.
Based on the Price/Free Cash Flow ratio, SBUX is valued a bit cheaper than the industry average as 64.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.66 | ||
| EV/EBITDA | 15.37 |
4.3 Compensation for Growth
SBUX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SBUX may justify a higher PE ratio.
SBUX's earnings are expected to grow with 16.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)2.76
EPS Next 2Y16.37%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.62%, 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 2.62. SBUX pays more dividend than 84.33% of the companies in the same industry.
SBUX's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
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.
Dividend Growth(5Y)10.79%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
SBUX pays out 57.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
SBUX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.58%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
STARBUCKS CORP
NASDAQ:SBUX (4/25/2024, 9:16:03 AM)
87.8
-0.95 (-1.07%)
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 Cap99.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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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 | 23.73 | ||
| Fwd PE | 18.26 | ||
| 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)1.44
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.71% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.69% | ||
| PM (TTM) | 11.7% | ||
| GM | 27.87% | ||
| 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 Turnover1.26
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 | 0.7 | ||
| Quick Ratio | 0.52 | ||
| 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)
Growth
EPS 1Y (TTM)23.75%
EPS 3Y45.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.46%
Revenue growth 3Y15.22%
Revenue growth 5Y
Revenue growth 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