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STARBUCKS CORP (SBUX) Stock Fundamental Analysis

NASDAQ:SBUX - Nasdaq - US8552441094 - Common Stock - Currency: USD

93.12  +0.84 (+0.91%)

After market: 93.03 -0.09 (-0.1%)

Fundamental Rating

5

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.


Dividend Valuation Growth Profitability Health

6

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.
SBUX Yearly Net Income VS EBIT VS OCF VS FCFSBUX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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 RankSector 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%
SBUX Yearly ROA, ROE, ROICSBUX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

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 RankSector 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%
SBUX Yearly Profit, Operating, Gross MarginsSBUX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

4

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.
SBUX Yearly Shares OutstandingSBUX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
SBUX Yearly Total Debt VS Total AssetsSBUX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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 RankSector Rank
Debt/Equity N/A
Debt/FCF 5.63
Altman-Z 2.75
ROIC/WACC1.92
WACC8.23%
SBUX Yearly LT Debt VS Equity VS FCFSBUX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

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 RankSector Rank
Current Ratio 0.64
Quick Ratio 0.45
SBUX Yearly Current Assets VS Current LiabilitesSBUX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

5

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.
SBUX Yearly Revenue VS EstimatesSBUX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
SBUX Yearly EPS VS EstimatesSBUX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8

2

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 RankSector Rank
PE 32.9
Fwd PE 30.87
SBUX Price Earnings VS Forward Price EarningsSBUX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 RankSector Rank
P/FCF 38.27
EV/EBITDA 19.41
SBUX Per share dataSBUX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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

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 RankSector 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
SBUX Yearly Dividends per shareSBUX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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%
SBUX Yearly Income VS Free CF VS DividendSBUX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
SBUX Dividend Payout.SBUX Dividend Payout, showing the Payout Ratio.SBUX Dividend Payout.PayoutRetained Earnings

STARBUCKS CORP

NASDAQ:SBUX (6/20/2025, 8:00:02 PM)

After market: 93.03 -0.09 (-0.1%)

93.12

+0.84 (+0.91%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-28 2025-07-28/amc
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 RankSector Rank
Dividend Yield 2.64%
Yearly Dividend2.27
Dividend Growth(5Y)9.97%
DP85.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-16 2025-05-16 (0.61)
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 RankSector 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 RankSector 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 RankSector 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%