STARBUCKS CORP (SBUX)
US8552441094 - Common Stock
SBUX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 136 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
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.
Each year in the past 5 years SBUX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SBUX (14.16%) is better than 89.63% of its industry peers.
With an excellent Return On Invested Capital value of 19.67%, SBUX belongs to the best of the industry, outperforming 91.85% of the companies in the same industry.
SBUX had an Average Return On Invested Capital over the past 3 years of 18.26%. This is significantly above the industry average of 10.04%.
The 3 year average ROIC (18.26%) for SBUX is below the current ROIC(19.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.16% | ||
| ROE | N/A | ||
| ROIC | 19.67% |
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
The Profit Margin of SBUX (11.38%) is better than 75.56% of its industry peers.
In the last couple of years the Profit Margin of SBUX has declined.
Looking at the Operating Margin, with a value of 15.31%, SBUX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SBUX's Operating Margin has been stable in the last couple of years.
SBUX's Gross Margin of 27.74% is on the low side compared to the rest of the industry. SBUX is outperformed by 80.74% of its industry peers.
SBUX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.31% | ||
| PM (TTM) | 11.38% | ||
| GM | 27.74% |
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
SBUX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SBUX has less 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 has been reduced compared to a year ago.
2.2 Solvency
SBUX has an Altman-Z score of 2.77. 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 has a better Altman-Z score (2.77) than 77.78% of its industry peers.
The Debt to FCF ratio of SBUX is 3.95, which is a good value as it means it would take SBUX, 3.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.95, SBUX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.95 | ||
| Altman-Z | 2.77 |
ROIC/WACC2.47
WACC7.97%
2.3 Liquidity
SBUX has a Current Ratio of 0.86. 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 (0.86) which is in line with its industry peers.
A Quick Ratio of 0.63 indicates that SBUX may have some problems paying its short term obligations.
SBUX's Quick ratio of 0.63 is on the low side compared to the rest of the industry. SBUX is outperformed by 67.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
SBUX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.92%, which is quite good.
Measured over the past years, SBUX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.60% on average per year.
Looking at the last year, SBUX shows a small growth in Revenue. The Revenue has grown by 7.45% in the last year.
The Revenue has been growing slightly by 7.79% on average over the past years.
EPS 1Y (TTM)15.92%
EPS 3Y45.19%
EPS 5Y8.6%
EPS Q2Q%-8.11%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y15.22%
Revenue growth 5Y7.79%
Sales Q2Q%-1.8%
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 11.80% on average per year.
Based on estimates for the next years, SBUX will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
EPS Next Y3.32%
EPS Next 2Y8.25%
EPS Next 3Y10%
EPS Next 5Y11.8%
Revenue Next Year2.54%
Revenue Next 2Y5.15%
Revenue Next 3Y6.18%
Revenue Next 5Y7.34%
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
Based on the Price/Earnings ratio of 20.14, the valuation of SBUX can be described as rather expensive.
SBUX's Price/Earnings ratio is a bit cheaper when compared to the industry. SBUX is cheaper than 63.70% of the companies in the same industry.
SBUX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
The Price/Forward Earnings ratio is 17.63, which indicates a rather expensive current valuation of SBUX.
SBUX's Price/Forward Earnings is on the same level as the industry average.
SBUX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 17.63 |
4.2 Price Multiples
SBUX's Enterprise Value to EBITDA ratio is in line with the industry average.
SBUX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SBUX is cheaper than 65.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 13.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SBUX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SBUX may justify a higher PE ratio.
PEG (NY)6.06
PEG (5Y)2.34
EPS Next 2Y8.25%
EPS Next 3Y10%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 3.07%.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 3.10. SBUX pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, SBUX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of SBUX is nicely growing with an annual growth rate of 10.79%!
SBUX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SBUX pays out 60.33% of its income as dividend. This is not a sustainable payout ratio.
SBUX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.33%
EPS Next 2Y8.25%
EPS Next 3Y10%
STARBUCKS CORP
NASDAQ:SBUX (7/25/2024, 7:11:26 PM)
Premarket: 73.7265 +0.41 (+0.55%)73.32
-1.36 (-1.82%)
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 Cap83.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
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 | 20.14 | ||
| Fwd PE | 17.63 | ||
| 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)6.06
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.16% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.31% | ||
| PM (TTM) | 11.38% | ||
| GM | 27.74% | ||
| 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 Turnover1.24
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 | 0.86 | ||
| Quick Ratio | 0.63 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)15.92%
EPS 3Y45.19%
EPS 5Y
EPS Q2Q%
EPS Next Y3.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.45%
Revenue growth 3Y15.22%
Revenue growth 5Y
Sales 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