STARBUCKS CORP (SBUX) Fundamental Analysis & Valuation
NASDAQ:SBUX • US8552441094
Current stock price
90.37 USD
-0.06 (-0.07%)
At close:
91 USD
+0.63 (+0.7%)
Pre-Market:
This SBUX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SBUX Profitability Analysis
1.1 Basic Checks
- SBUX had positive earnings in the past year.
- 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 better Return On Assets (4.25%) than 61.90% of its industry peers.
- With a decent Return On Invested Capital value of 12.73%, SBUX is doing good in the industry, outperforming 79.37% of the companies in the same industry.
- SBUX had an Average Return On Invested Capital over the past 3 years of 16.82%. This is significantly above the industry average of 10.66%.
- The last Return On Invested Capital (12.73%) for SBUX is well below the 3 year average (16.82%), which needs to be investigated, but indicates that SBUX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | N/A | ||
| ROIC | 12.73% |
ROA(3y)10.6%
ROA(5y)11.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.82%
ROIC(5y)16.64%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.63%, SBUX is in line with its industry, outperforming 51.59% of the companies in the same industry.
- In the last couple of years the Profit Margin of SBUX has grown nicely.
- SBUX has a Operating Margin of 9.35%. This is comparable to the rest of the industry: SBUX outperforms 51.59% of its industry peers.
- SBUX's Operating Margin has improved in the last couple of years.
- The Gross Margin of SBUX (22.17%) is worse than 84.92% 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 | 9.35% | ||
| PM (TTM) | 3.63% | ||
| GM | 22.17% |
OM growth 3Y-10.56%
OM growth 5Y8.11%
PM growth 3Y-21.13%
PM growth 5Y4.81%
GM growth 3Y-3.94%
GM growth 5Y1.15%
2. SBUX Health Analysis
2.1 Basic Checks
- SBUX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for SBUX has been increased compared to 1 year ago.
- Compared to 5 years ago, SBUX has less shares outstanding
- Compared to 1 year ago, SBUX has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.69 indicates that SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SBUX's Altman-Z score of 2.69 is fine compared to the rest of the industry. SBUX outperforms 71.43% of its industry peers.
- The Debt to FCF ratio of SBUX is 8.08, which is on the high side as it means it would take SBUX, 8.08 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of SBUX (8.08) is better than 65.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.56
WACC8.16%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that SBUX should not have too much problems paying its short term obligations.
- SBUX's Current ratio of 1.05 is in line compared to the rest of the industry. SBUX outperforms 55.56% of its industry peers.
- SBUX has a Quick Ratio of 1.05. This is a bad value and indicates that SBUX is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.86, SBUX is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.86 |
3. SBUX Growth Analysis
3.1 Past
- The earnings per share for SBUX have decreased strongly by -32.26% 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.
- SBUX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.30%.
- 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)-32.26%
EPS 3Y-9.01%
EPS 5Y13.96%
EPS Q2Q%-18.84%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.5%
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 17.47% on average per year.
- The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y5.06%
EPS Next 2Y16.31%
EPS Next 3Y18.35%
EPS Next 5Y17.47%
Revenue Next Year3.73%
Revenue Next 2Y4.48%
Revenue Next 3Y4.63%
Revenue Next 5Y5.86%
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 decreasing: in the next years the growth will be less than in the last years.
4. SBUX Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 43.03, SBUX can be considered very expensive at the moment.
- SBUX's Price/Earnings is on the same level as the industry average.
- SBUX is valuated expensively when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 29.95, SBUX can be considered very expensive at the moment.
- SBUX's Price/Forward Earnings is on the same level as the industry average.
- SBUX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.03 | ||
| Fwd PE | 29.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SBUX is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as SBUX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.75 | ||
| EV/EBITDA | 21.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SBUX has a very decent profitability rating, which may justify a higher PE ratio.
- SBUX's earnings are expected to grow with 18.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.5
PEG (5Y)3.08
EPS Next 2Y16.31%
EPS Next 3Y18.35%
5. SBUX Dividend Analysis
5.1 Amount
- SBUX has a Yearly Dividend Yield of 2.86%.
- Compared to an average industry Dividend Yield of 1.14, SBUX pays a better dividend. On top of this SBUX pays more dividend than 84.13% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, SBUX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 in the last 3 years.
Dividend Growth(5Y)8.39%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 203.40% of the earnings are spent on dividend by SBUX. This is not a sustainable payout ratio.
- The dividend of SBUX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP203.4%
EPS Next 2Y16.31%
EPS Next 3Y18.35%
SBUX Fundamentals: All Metrics, Ratios and Statistics
90.37
-0.06 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-20 2026-04-20/amc
Inst Owners84.68%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change0.95%
Market Cap102.96B
Revenue(TTM)37.70B
Net Income(TTM)1.37B
Analysts69.58
Price Target102.37 (13.28%)
Short Float %4.14%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend2.44
Dividend Growth(5Y)8.39%
DP203.4%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-13 2026-02-13 (0.62)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.89%
Min EPS beat(2)-9.45%
Max EPS beat(2)-6.33%
EPS beat(4)0
Avg EPS beat(4)-10.23%
Min EPS beat(4)-17.35%
Max EPS beat(4)-6.33%
EPS beat(8)1
Avg EPS beat(8)-10.23%
EPS beat(12)4
Avg EPS beat(12)-5.44%
EPS beat(16)6
Avg EPS beat(16)-3.32%
Revenue beat(2)2
Avg Revenue beat(2)0.52%
Min Revenue beat(2)0.34%
Max Revenue beat(2)0.71%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.71%
Revenue beat(8)2
Avg Revenue beat(8)-2.41%
Revenue beat(12)3
Avg Revenue beat(12)-2.12%
Revenue beat(16)3
Avg Revenue beat(16)-1.98%
PT rev (1m)0.13%
PT rev (3m)6.78%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.03 | ||
| Fwd PE | 29.95 | ||
| P/S | 2.73 | ||
| P/FCF | 51.75 | ||
| P/OCF | 26.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.76 |
EPS(TTM)2.1
EY2.32%
EPS(NY)3.02
Fwd EY3.34%
FCF(TTM)1.75
FCFY1.93%
OCF(TTM)3.45
OCFY3.81%
SpS33.09
BVpS-7.36
TBVpS-8.66
PEG (NY)8.5
PEG (5Y)3.08
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | N/A | ||
| ROCE | 17% | ||
| ROIC | 12.73% | ||
| ROICexc | 15.4% | ||
| ROICexgc | 16.85% | ||
| OM | 9.35% | ||
| PM (TTM) | 3.63% | ||
| GM | 22.17% | ||
| FCFM | 5.28% |
ROA(3y)10.6%
ROA(5y)11.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.82%
ROIC(5y)16.64%
ROICexc(3y)20.37%
ROICexc(5y)20.69%
ROICexgc(3y)25.31%
ROICexgc(5y)26.18%
ROCE(3y)22.47%
ROCE(5y)22.27%
ROICexgc growth 3Y-11.64%
ROICexgc growth 5Y16.63%
ROICexc growth 3Y-10.72%
ROICexc growth 5Y17.82%
OM growth 3Y-10.56%
OM growth 5Y8.11%
PM growth 3Y-21.13%
PM growth 5Y4.81%
GM growth 3Y-3.94%
GM growth 5Y1.15%
F-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.08 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 109.32% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 5.58 | ||
| Cash Conversion | 74.11% | ||
| Profit Quality | 145.34% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.69 |
F-Score5
WACC8.16%
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)-32.26%
EPS 3Y-9.01%
EPS 5Y13.96%
EPS Q2Q%-18.84%
EPS Next Y5.06%
EPS Next 2Y16.31%
EPS Next 3Y18.35%
EPS Next 5Y17.47%
Revenue 1Y (TTM)4.3%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.5%
Revenue Next Year3.73%
Revenue Next 2Y4.48%
Revenue Next 3Y4.63%
Revenue Next 5Y5.86%
EBIT growth 1Y-26.18%
EBIT growth 3Y-6.21%
EBIT growth 5Y18.48%
EBIT Next Year49.66%
EBIT Next 3Y27.18%
EBIT Next 5Y26.87%
FCF growth 1Y-54.64%
FCF growth 3Y-1.51%
FCF growth 5Y84.51%
OCF growth 1Y-42.26%
OCF growth 3Y2.59%
OCF growth 5Y24.33%
STARBUCKS CORP / SBUX Fundamental Analysis FAQ
What is the fundamental rating for SBUX stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBUX.
What is the valuation status for SBUX stock?
ChartMill assigns a valuation rating of 2 / 10 to STARBUCKS CORP (SBUX). This can be considered as Overvalued.
Can you provide the profitability details for STARBUCKS CORP?
STARBUCKS CORP (SBUX) has a profitability rating of 6 / 10.
What is the valuation of STARBUCKS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STARBUCKS CORP (SBUX) is 43.03 and the Price/Book (PB) ratio is -12.27.
Can you provide the financial health for SBUX stock?
The financial health rating of STARBUCKS CORP (SBUX) is 4 / 10.