STARBUCKS CORP (SBUX) Stock Fundamental Analysis
NASDAQ:SBUX - Nasdaq - US8552441094 - Common Stock - Currency: USD
SBUX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has only an average score on both its financial health and profitability. 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.
In the past year SBUX had a positive cash flow from operations.
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
SBUX's Return On Assets of 9.89% is amongst the best of the industry. SBUX outperforms 85.07% of its industry peers.
SBUX's Return On Invested Capital of 15.79% is amongst the best of the industry. SBUX outperforms 83.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBUX is above the industry average of 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | N/A | ||
| ROIC | 15.79% |
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
With a decent Profit Margin value of 8.61%, SBUX is doing good in the industry, outperforming 69.40% of the companies in the same industry.
SBUX's Profit Margin has declined in the last couple of years.
SBUX's Operating Margin of 12.12% is fine compared to the rest of the industry. SBUX outperforms 61.19% of its industry peers.
SBUX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 25.03%, SBUX is doing worse than 81.34% 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 | 12.12% | ||
| PM (TTM) | 8.61% | ||
| GM | 25.03% |
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.
Compared to 1 year ago, SBUX has less shares outstanding
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
SBUX has an Altman-Z score of 2.75. 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.
SBUX's Altman-Z score of 2.75 is fine compared to the rest of the industry. SBUX outperforms 74.63% of its industry peers.
The Debt to FCF ratio of SBUX is 5.63, which is a neutral value as it means it would take SBUX, 5.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.63, SBUX is in the better half of the industry, outperforming 79.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.92
WACC8.23%
2.3 Liquidity
SBUX has a Current Ratio of 0.64. 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 Current ratio (0.64) than 64.93% of its industry peers.
SBUX has a Quick Ratio of 0.64. 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's Quick ratio of 0.45 is on the low side compared to the rest of the industry. SBUX is outperformed by 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for SBUX have decreased strongly by -22.25% in the last year.
Measured over the past 5 years, SBUX shows a small growth in Earnings Per Share. The EPS has been growing by 3.70% on average per year.
SBUX shows a decrease in Revenue. In the last year, the revenue decreased by -0.50%.
The Revenue has been growing slightly by 6.42% on average over the past years.
EPS 1Y (TTM)-22.25%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-39.71%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%2.32%
3.2 Future
The Earnings Per Share is expected to grow by 14.04% on average over the next years. This is quite good.
Based on estimates for the next years, SBUX will show a quite strong growth in Revenue. The Revenue will grow by 8.83% on average per year.
EPS Next Y-24.31%
EPS Next 2Y-4.54%
EPS Next 3Y2.93%
EPS Next 5Y14.04%
Revenue Next Year1.02%
Revenue Next 2Y3.56%
Revenue Next 3Y4.94%
Revenue Next 5Y8.83%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.90, the valuation of SBUX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SBUX.
The average S&P500 Price/Earnings ratio is at 26.35. SBUX is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.87, SBUX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as SBUX.
When comparing the Price/Forward Earnings ratio of SBUX to the average of the S&P500 Index (22.19), we can say SBUX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 30.87 |
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 68.66% 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 | 38.27 | ||
| EV/EBITDA | 19.41 |
4.3 Compensation for Growth
The decent profitability rating of SBUX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.89
EPS Next 2Y-4.54%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.64%.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 3.56. 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 85.54% 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.
DP85.54%
EPS Next 2Y-4.54%
EPS Next 3Y2.93%
93.12
+0.84 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.69%
Inst Owner Change6.35%
Ins Owners0.06%
Ins Owner Change0.3%
Market Cap105.82B
Analysts71.36
Price Target93.18 (0.06%)
Short Float %3.38%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend2.27
Dividend Growth(5Y)9.97%
DP85.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.05%
Min EPS beat(2)-17.35%
Max EPS beat(2)1.24%
EPS beat(4)1
Avg EPS beat(4)-10.54%
Min EPS beat(4)-23.71%
Max EPS beat(4)1.24%
EPS beat(8)3
Avg EPS beat(8)-6.69%
EPS beat(12)6
Avg EPS beat(12)-2.25%
EPS beat(16)7
Avg EPS beat(16)-0.95%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-0.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)-0.99%
Revenue beat(8)0
Avg Revenue beat(8)-3.48%
Revenue beat(12)1
Avg Revenue beat(12)-2.58%
Revenue beat(16)2
Avg Revenue beat(16)-2.19%
PT rev (1m)-0.19%
PT rev (3m)-13.41%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-26.61%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-16.99%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 30.87 | ||
| P/S | 2.91 | ||
| P/FCF | 38.27 | ||
| P/OCF | 19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.41 |
EPS(TTM)2.83
EY3.04%
EPS(NY)3.02
Fwd EY3.24%
FCF(TTM)2.43
FCFY2.61%
OCF(TTM)4.9
OCFY5.26%
SpS31.98
BVpS-6.71
TBVpS-9.78
PEG (NY)N/A
PEG (5Y)8.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.89% | ||
| ROE | N/A | ||
| ROCE | 20.77% | ||
| ROIC | 15.79% | ||
| ROICexc | 18.4% | ||
| ROICexgc | 22.78% | ||
| OM | 12.12% | ||
| PM (TTM) | 8.61% | ||
| GM | 25.03% | ||
| FCFM | 7.61% |
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.63 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 167.31% | ||
| Cap/Sales | 7.72% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 91.61% | ||
| Profit Quality | 88.37% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 2.75 |
F-Score4
WACC8.23%
ROIC/WACC1.92
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)-22.25%
EPS 3Y0.72%
EPS 5Y3.7%
EPS Q2Q%-39.71%
EPS Next Y-24.31%
EPS Next 2Y-4.54%
EPS Next 3Y2.93%
EPS Next 5Y14.04%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%2.32%
Revenue Next Year1.02%
Revenue Next 2Y3.56%
Revenue Next 3Y4.94%
Revenue Next 5Y8.83%
EBIT growth 1Y-21.25%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year0.44%
EBIT Next 3Y10.12%
EBIT Next 5Y15.31%
FCF growth 1Y0.41%
FCF growth 3Y-9.78%
FCF growth 5Y0.48%
OCF growth 1Y17.87%
OCF growth 3Y0.59%
OCF growth 5Y3.85%