STARBUCKS CORP (SBUX) Stock Fundamental Analysis
USA - NASDAQ:SBUX - US8552441094 - Common Stock
81.085 USD
-1.03 (-1.25%)
Taking everything into account, SBUX scores 4 out of 10 in our fundamental rating. SBUX was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of SBUX get a neutral evaluation. Nothing too spectacular is happening here. SBUX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SBUX had positive earnings in the past year.
SBUX had a positive operating cash flow in the past year.
Each year in the past 5 years SBUX has been profitable.
In the past 5 years SBUX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.82%, SBUX is doing good in the industry, outperforming 79.26% of the companies in the same industry.
SBUX has a Return On Invested Capital of 13.04%. This is amongst the best in the industry. SBUX outperforms 81.48% of its industry peers.
SBUX had an Average Return On Invested Capital over the past 3 years of 18.75%. This is above the industry average of 15.70%.
The last Return On Invested Capital (13.04%) for SBUX is well below the 3 year average (18.75%), which needs to be investigated, but indicates that SBUX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | N/A | ||
| ROIC | 13.04% |
ROA(3y)12.58%
ROA(5y)10.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.75%
ROIC(5y)15.39%
1.3 Margins
The Profit Margin of SBUX (7.18%) is better than 63.70% of its industry peers.
SBUX's Profit Margin has declined in the last couple of years.
The Operating Margin of SBUX (10.52%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SBUX has remained more or less at the same level.
SBUX has a worse Gross Margin (23.74%) than 81.48% 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 | 10.52% | ||
| PM (TTM) | 7.18% | ||
| GM | 23.74% |
OM growth 3Y-4.29%
OM growth 5Y-0.81%
PM growth 3Y-10.39%
PM growth 5Y-5.2%
GM growth 3Y-2.5%
GM growth 5Y-0.97%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SBUX has less shares outstanding
The debt/assets ratio for SBUX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.41 indicates that SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBUX's Altman-Z score of 2.41 is fine compared to the rest of the industry. SBUX outperforms 65.19% of its industry peers.
SBUX has a debt to FCF ratio of 7.69. This is a slightly negative value and a sign of low solvency as SBUX would need 7.69 years to pay back of all of its debts.
SBUX's Debt to FCF ratio of 7.69 is fine compared to the rest of the industry. SBUX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.65
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.76 indicates that SBUX may have some problems paying its short term obligations.
With a Current ratio value of 0.76, SBUX is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
SBUX has a Quick Ratio of 0.76. 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 worse Quick ratio (0.55) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
SBUX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.69%.
SBUX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.70% yearly.
SBUX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.59%.
Measured over the past years, SBUX shows a small growth in Revenue. The Revenue has been growing by 6.42% on average per year.
EPS 1Y (TTM)-29.69%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-34.41%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%3.75%
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 9.25% yearly.
Based on estimates for the next years, SBUX will show a small growth in Revenue. The Revenue will grow by 6.90% on average per year.
EPS Next Y-32.23%
EPS Next 2Y-9.25%
EPS Next 3Y0.95%
EPS Next 5Y9.25%
Revenue Next Year1.43%
Revenue Next 2Y3.51%
Revenue Next 3Y4.85%
Revenue Next 5Y6.9%
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
With a Price/Earnings ratio of 32.30, SBUX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SBUX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SBUX to the average of the S&P500 Index (27.90), we can say SBUX is valued inline with the index average.
A Price/Forward Earnings ratio of 29.74 indicates a quite expensive valuation of SBUX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBUX is on the same level as its industry peers.
SBUX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 29.74 |
4.2 Price Multiples
65.19% of the companies in the same industry are cheaper than SBUX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBUX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.9 | ||
| EV/EBITDA | 18.98 |
4.3 Compensation for Growth
The decent profitability rating of SBUX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.73
EPS Next 2Y-9.25%
EPS Next 3Y0.95%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.99, SBUX pays a better dividend. On top of this SBUX pays more dividend than 82.96% of the companies listed in the same industry.
SBUX's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of SBUX is nicely growing with an annual growth rate of 9.97%!
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)9.97%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SBUX pays out 103.48% of its income as dividend. This is not a sustainable payout ratio.
SBUX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP103.48%
EPS Next 2Y-9.25%
EPS Next 3Y0.95%
NASDAQ:SBUX (10/7/2025, 3:16:10 PM)
81.085
-1.03 (-1.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner Change-0.23%
Market Cap92.17B
Analysts70.87
Price Target99.62 (22.86%)
Short Float %3.95%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend2.27
Dividend Growth(5Y)9.97%
DP103.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.57%
Min EPS beat(2)-17.35%
Max EPS beat(2)-7.8%
EPS beat(4)1
Avg EPS beat(4)-11.9%
Min EPS beat(4)-23.71%
Max EPS beat(4)1.24%
EPS beat(8)2
Avg EPS beat(8)-8.03%
EPS beat(12)5
Avg EPS beat(12)-3.68%
EPS beat(16)6
Avg EPS beat(16)-3.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-3.12%
Revenue beat(12)1
Avg Revenue beat(12)-2.49%
Revenue beat(16)1
Avg Revenue beat(16)-2.27%
PT rev (1m)-0.26%
PT rev (3m)6.92%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-15.98%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-10.46%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 29.74 | ||
| P/S | 2.51 | ||
| P/FCF | 40.9 | ||
| P/OCF | 18.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.98 |
EPS(TTM)2.51
EY3.1%
EPS(NY)2.73
Fwd EY3.36%
FCF(TTM)1.98
FCFY2.45%
OCF(TTM)4.31
OCFY5.32%
SpS32.28
BVpS-6.76
TBVpS-9.89
PEG (NY)N/A
PEG (5Y)8.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | N/A | ||
| ROCE | 17.15% | ||
| ROIC | 13.04% | ||
| ROICexc | 16.3% | ||
| ROICexgc | 20.31% | ||
| OM | 10.52% | ||
| PM (TTM) | 7.18% | ||
| GM | 23.74% | ||
| FCFM | 6.14% |
ROA(3y)12.58%
ROA(5y)10.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.75%
ROIC(5y)15.39%
ROICexc(3y)22.75%
ROICexc(5y)19.3%
ROICexgc(3y)28.54%
ROICexgc(5y)24.55%
ROCE(3y)24.75%
ROCE(5y)20.33%
ROICexcg growth 3Y-3.53%
ROICexcg growth 5Y-12.42%
ROICexc growth 3Y-1.05%
ROICexc growth 5Y-6.35%
OM growth 3Y-4.29%
OM growth 5Y-0.81%
PM growth 3Y-10.39%
PM growth 5Y-5.2%
GM growth 3Y-2.5%
GM growth 5Y-0.97%
F-Score4
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 154.21% | ||
| Cap/Sales | 7.22% | ||
| Interest Coverage | 6.55 | ||
| Cash Conversion | 87.9% | ||
| Profit Quality | 85.61% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.41 |
F-Score4
WACC7.92%
ROIC/WACC1.65
Cap/Depr(3y)151.91%
Cap/Depr(5y)130.17%
Cap/Sales(3y)6.62%
Cap/Sales(5y)6.25%
Profit Quality(3y)85.07%
Profit Quality(5y)75.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-29.69%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-34.41%
EPS Next Y-32.23%
EPS Next 2Y-9.25%
EPS Next 3Y0.95%
EPS Next 5Y9.25%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%3.75%
Revenue Next Year1.43%
Revenue Next 2Y3.51%
Revenue Next 3Y4.85%
Revenue Next 5Y6.9%
EBIT growth 1Y-30.01%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year-4.4%
EBIT Next 3Y8.51%
EBIT Next 5Y9.21%
FCF growth 1Y-24.46%
FCF growth 3Y-9.78%
FCF growth 5Y0.48%
OCF growth 1Y-5.08%
OCF growth 3Y0.59%
OCF growth 5Y3.85%