95.83 USD
-0.6 (-0.62%)
96.51 USD
+0.68 (+0.71%)
Overall SBUX gets a fundamental rating of 5 out of 10. We evaluated SBUX against 133 industry peers in the Hotels, Restaurants & Leisure industry. While SBUX is still in line with the averages on profitability rating, there are concerns on its financial health. SBUX is quite expensive at the moment. 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.
- Each year in the past 5 years SBUX had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.80%, SBUX is in the better half of the industry, outperforming 72.18% of the companies in the same industry.
- SBUX has a Return On Invested Capital of 12.29%. This is in the better half of the industry: SBUX outperforms 78.20% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SBUX is significantly above the industry average of 10.34%.
- The 3 year average ROIC (16.70%) for SBUX is well above the current ROIC(12.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | N/A | ||
| ROIC | 12.29% |
ROA(3y)10.6%
ROA(5y)11.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.7%
ROIC(5y)16.57%
1.3 Margins
- SBUX has a Profit Margin (4.99%) which is comparable to the rest of the industry.
- SBUX's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 9.63%, SBUX is in line with its industry, outperforming 54.89% of the companies in the same industry.
- In the last couple of years the Operating Margin of SBUX has grown nicely.
- SBUX has a Gross Margin of 22.77%. This is amonst the worse of the industry: SBUX underperforms 81.95% 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 | 9.63% | ||
| PM (TTM) | 4.99% | ||
| GM | 22.77% |
OM growth 3Y-11.39%
OM growth 5Y7.5%
PM growth 3Y-21.13%
PM growth 5Y4.81%
GM growth 3Y-4.33%
GM growth 5Y0.91%
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 more shares outstanding
- 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
- SBUX has an Altman-Z score of 2.70. 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.
- The Altman-Z score of SBUX (2.70) is better than 70.68% of its industry peers.
- SBUX has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as SBUX would need 6.58 years to pay back of all of its debts.
- SBUX has a Debt to FCF ratio of 6.58. This is in the better half of the industry: SBUX outperforms 72.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.51
WACC8.12%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that SBUX may have some problems paying its short term obligations.
- SBUX has a worse Current ratio (0.72) than 62.41% of its industry peers.
- A Quick Ratio of 0.51 indicates that SBUX may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.51, SBUX is doing worse than 70.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- SBUX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.63%.
- 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.
- The Revenue has been growing slightly by 2.79% in the past year.
- The Revenue has been growing by 9.60% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.63%
EPS 3Y-9.01%
EPS 5Y13.96%
EPS Q2Q%-35%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.46%
3.2 Future
- Based on estimates for the next years, SBUX will show a very strong growth in Earnings Per Share. The EPS will grow by 25.22% on average per year.
- SBUX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.08% yearly.
EPS Next Y8.7%
EPS Next 2Y17.15%
EPS Next 3Y17.92%
EPS Next 5Y25.22%
Revenue Next Year3.37%
Revenue Next 2Y5.18%
Revenue Next 3Y5.32%
Revenue Next 5Y10.08%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- SBUX is valuated quite expensively with a Price/Earnings ratio of 42.97.
- SBUX's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of SBUX to the average of the S&P500 Index (27.32), we can say SBUX is valued expensively.
- SBUX is valuated quite expensively with a Price/Forward Earnings ratio of 39.53.
- SBUX's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. SBUX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.97 | ||
| Fwd PE | 39.53 |
4.2 Price Multiples
- 72.18% 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 | 44.62 | ||
| EV/EBITDA | 22.8 |
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.
- SBUX has a very decent profitability rating, which may justify a higher PE ratio.
- SBUX's earnings are expected to grow with 17.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.94
PEG (5Y)3.08
EPS Next 2Y17.15%
EPS Next 3Y17.92%
5. Dividend
5.1 Amount
- SBUX has a Yearly Dividend Yield of 2.66%.
- Compared to an average industry Dividend Yield of 1.19, SBUX pays a better dividend. On top of this SBUX pays more dividend than 84.21% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, SBUX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- On average, the dividend of SBUX grows each year by 8.39%, 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)8.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- SBUX pays out 149.29% of its income as dividend. This is not a sustainable payout ratio.
- SBUX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP149.29%
EPS Next 2Y17.15%
EPS Next 3Y17.92%
STARBUCKS CORP / SBUX FAQ
What is the fundamental rating for SBUX stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBUX.
What is the valuation status of STARBUCKS CORP (SBUX) stock?
ChartMill assigns a valuation rating of 2 / 10 to STARBUCKS CORP (SBUX). This can be considered as Overvalued.
How profitable is STARBUCKS CORP (SBUX) stock?
STARBUCKS CORP (SBUX) has a profitability rating of 6 / 10.
What are the PE and PB ratios of STARBUCKS CORP (SBUX) stock?
The Price/Earnings (PE) ratio for STARBUCKS CORP (SBUX) is 42.97 and the Price/Book (PB) ratio is -13.46.
What is the expected EPS growth for STARBUCKS CORP (SBUX) stock?
The Earnings per Share (EPS) of STARBUCKS CORP (SBUX) is expected to grow by 8.7% in the next year.