STARBUCKS CORP (SBUX) Stock Fundamental Analysis
USA - NASDAQ:SBUX - US8552441094 - Common Stock
83.345 USD
+1.44 (+1.76%)
SBUX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has an average financial health and profitability rating. 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.
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's Return On Assets of 7.82% is fine compared to the rest of the industry. SBUX outperforms 78.95% of its industry peers.
SBUX's Return On Invested Capital of 13.04% is amongst the best of the industry. SBUX outperforms 81.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBUX is above the industry average of 15.68%.
The 3 year average ROIC (18.75%) for SBUX is well above the current ROIC(13.04%). The reason for the recent decline needs to be investigated.
| 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
SBUX's Profit Margin of 7.18% is fine compared to the rest of the industry. SBUX outperforms 63.16% of its industry peers.
SBUX's Profit Margin has declined in the last couple of years.
SBUX has a Operating Margin (10.52%) which 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.
With a Gross Margin value of 23.74%, SBUX is not doing good in the industry: 81.95% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, SBUX has less shares outstanding
Compared to 5 years ago, SBUX has less shares outstanding
SBUX has a better debt/assets ratio than last year.
2.2 Solvency
SBUX has an Altman-Z score of 2.40. 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.
With a decent Altman-Z score value of 2.40, SBUX is doing good in the industry, outperforming 63.16% of the companies in the same industry.
The Debt to FCF ratio of SBUX is 7.69, which is on the high side as it means it would take SBUX, 7.69 years of fcf income to pay off all of its debts.
SBUX has a better Debt to FCF ratio (7.69) than 67.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.52
WACC8.55%
2.3 Liquidity
A Current Ratio of 0.76 indicates that SBUX may have some problems paying its short term obligations.
SBUX has a Current ratio (0.76) which is in line with its industry peers.
A Quick Ratio of 0.55 indicates that SBUX may have some problems paying its short term obligations.
The Quick ratio of SBUX (0.55) is worse than 67.67% 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%.
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.
Looking at the last year, SBUX shows a small growth in Revenue. The Revenue has grown by 0.59% in the last year.
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 10.14% yearly.
Based on estimates for the next years, SBUX will show a small growth in Revenue. The Revenue will grow by 7.07% on average per year.
EPS Next Y-32.14%
EPS Next 2Y-9.14%
EPS Next 3Y1.11%
EPS Next 5Y10.14%
Revenue Next Year1.53%
Revenue Next 2Y3.87%
Revenue Next 3Y4.91%
Revenue Next 5Y7.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 33.21, which means the current valuation is very expensive for SBUX.
The rest of the industry has a similar Price/Earnings ratio as SBUX.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SBUX is valued a bit more expensive.
A Price/Forward Earnings ratio of 30.50 indicates a quite expensive valuation of SBUX.
SBUX's Price/Forward Earnings ratio is in line with the industry average.
SBUX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.21 | ||
| Fwd PE | 30.5 |
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 63.91% 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 | 42.04 | ||
| EV/EBITDA | 18.93 |
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)8.97
EPS Next 2Y-9.14%
EPS Next 3Y1.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, SBUX has a reasonable but not impressive dividend return.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 3.93. SBUX pays more dividend than 83.46% of the companies in the same industry.
SBUX's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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.
The dividend of SBUX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP103.48%
EPS Next 2Y-9.14%
EPS Next 3Y1.11%
NASDAQ:SBUX (9/15/2025, 10:01:10 AM)
83.345
+1.44 (+1.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.52%
Inst Owner Change3.21%
Ins Owners0.06%
Ins Owner Change-0.04%
Market Cap94.74B
Analysts71.56
Price Target99.88 (19.84%)
Short Float %4.37%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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)0.64%
PT rev (3m)7.51%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-15.35%
EPS NY rev (1m)-10.23%
EPS NY rev (3m)-9.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.21 | ||
| Fwd PE | 30.5 | ||
| P/S | 2.58 | ||
| P/FCF | 42.04 | ||
| P/OCF | 19.33 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.93 |
EPS(TTM)2.51
EY3.01%
EPS(NY)2.73
Fwd EY3.28%
FCF(TTM)1.98
FCFY2.38%
OCF(TTM)4.31
OCFY5.17%
SpS32.28
BVpS-6.76
TBVpS-9.89
PEG (NY)N/A
PEG (5Y)8.97
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 | 2.4 |
F-Score4
WACC8.55%
ROIC/WACC1.52
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-32.14%
EPS Next 2Y-9.14%
EPS Next 3Y1.11%
EPS Next 5Y10.14%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y7.57%
Revenue growth 5Y6.42%
Sales Q2Q%3.75%
Revenue Next Year1.53%
Revenue Next 2Y3.87%
Revenue Next 3Y4.91%
Revenue Next 5Y7.07%
EBIT growth 1Y-30.01%
EBIT growth 3Y2.96%
EBIT growth 5Y5.55%
EBIT Next Year-4.42%
EBIT Next 3Y8.5%
EBIT Next 5Y12.42%
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%