STARBUCKS CORP (SBUX) Stock Fundamental Analysis
NASDAQ:SBUX - Nasdaq - US8552441094 - Common Stock - Currency: USD
Overall SBUX gets a fundamental rating of 4 out of 10. We evaluated SBUX against 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBUX was profitable.
SBUX had a positive operating cash flow in the past year.
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
SBUX has a Return On Assets of 9.89%. This is amongst the best in the industry. SBUX outperforms 85.19% of its industry peers.
SBUX's Return On Invested Capital of 15.79% is amongst the best of the industry. SBUX outperforms 82.96% 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 14.12%.
| 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
Looking at the Profit Margin, with a value of 8.61%, SBUX is in the better half of the industry, outperforming 69.63% of the companies in the same industry.
In the last couple of years the Profit Margin of SBUX has declined.
SBUX's Operating Margin of 12.12% is fine compared to the rest of the industry. SBUX outperforms 60.74% of its industry peers.
SBUX's Operating Margin has been stable in the last couple of years.
SBUX's Gross Margin of 25.03% 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 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
SBUX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SBUX has less shares outstanding
SBUX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SBUX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.60 indicates that SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SBUX (2.60) is better than 71.85% of its industry peers.
SBUX has a debt to FCF ratio of 5.63. This is a neutral value as SBUX would need 5.63 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.63, SBUX is doing good in the industry, outperforming 77.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.83
WACC8.65%
2.3 Liquidity
A Current Ratio of 0.64 indicates that SBUX may have some problems paying its short term obligations.
SBUX's Current ratio of 0.64 is on the low side compared to the rest of the industry. SBUX is outperformed by 62.96% of its industry peers.
A Quick Ratio of 0.45 indicates that SBUX may have some problems paying its short term obligations.
The Quick ratio of SBUX (0.45) is worse than 72.59% 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.
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 decrease in Revenue. In the last year, the revenue decreased by -0.50%.
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)-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
SBUX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.35% yearly.
Based on estimates for the next years, SBUX will show a small growth in Revenue. The Revenue will grow by 7.83% on average per year.
EPS Next Y-24.96%
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
EPS Next 5Y14.35%
Revenue Next Year1.01%
Revenue Next 2Y3.55%
Revenue Next 3Y4.92%
Revenue Next 5Y7.83%
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
Based on the Price/Earnings ratio of 30.24, the valuation of SBUX can be described as expensive.
SBUX's Price/Earnings ratio is in line with the industry average.
SBUX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
SBUX is valuated quite expensively with a Price/Forward Earnings ratio of 28.40.
The rest of the industry has a similar Price/Forward Earnings ratio as SBUX.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, SBUX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 28.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SBUX indicates a slightly more expensive valuation: SBUX is more expensive than 61.48% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SBUX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.18 | ||
| EV/EBITDA | 17.82 |
4.3 Compensation for Growth
SBUX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.17
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.80%.
In the last 3 months the price of SBUX has falen by -23.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 3.55. SBUX pays more dividend than 84.44% of the companies in the same industry.
SBUX's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
On average, the dividend of SBUX grows each year by 9.97%, which is quite nice.
SBUX has paid a dividend for at least 10 years, which is 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
85.54% 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.
DP85.54%
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
85.59
+0.98 (+1.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.28%
Inst Owner Change6.48%
Ins Owners0.06%
Ins Owner Change0.93%
Market Cap97.26B
Analysts71.11
Price Target93.35 (9.07%)
Short Float %2.94%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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)-14.6%
PT rev (3m)-11.01%
EPS NQ rev (1m)-25.48%
EPS NQ rev (3m)-26.49%
EPS NY rev (1m)-16.55%
EPS NY rev (3m)-17.71%
Revenue NQ rev (1m)-3.01%
Revenue NQ rev (3m)-3.18%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 28.4 | ||
| P/S | 2.68 | ||
| P/FCF | 35.18 | ||
| P/OCF | 17.46 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.82 |
EPS(TTM)2.83
EY3.31%
EPS(NY)3.01
Fwd EY3.52%
FCF(TTM)2.43
FCFY2.84%
OCF(TTM)4.9
OCFY5.73%
SpS31.98
BVpS-6.71
TBVpS-9.78
PEG (NY)N/A
PEG (5Y)8.17
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 | 2.6 |
F-Score4
WACC8.65%
ROIC/WACC1.83
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-24.96%
EPS Next 2Y-4.59%
EPS Next 3Y3.84%
EPS Next 5Y14.35%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%2.32%
Revenue Next Year1.01%
Revenue Next 2Y3.55%
Revenue Next 3Y4.92%
Revenue Next 5Y7.83%
EBIT growth 1Y-21.25%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year12.79%
EBIT Next 3Y14.73%
EBIT Next 5Y15.52%
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%