88.33 USD
-1.09 (-1.22%)
88.4 USD
+0.07 (+0.08%)
We assign a fundamental rating of 5 out of 10 to SBUX. SBUX was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, SBUX is valued expensive at the moment.
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
Looking at the Return On Assets, with a value of 5.80%, SBUX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.29%, SBUX is in the better half of the industry, outperforming 78.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBUX is significantly above the industry average of 10.40%.
The last Return On Invested Capital (12.29%) for SBUX is well below the 3 year average (16.70%), which needs to be investigated, but indicates that SBUX had better years and this may not be a problem.
| 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 of 4.99%. This is comparable to the rest of the industry: SBUX outperforms 55.64% of its industry peers.
SBUX's Profit Margin has improved in the last couple of years.
SBUX has a Operating Margin of 9.63%. This is comparable to the rest of the industry: SBUX outperforms 54.89% of its industry peers.
SBUX's Operating Margin has improved in the last couple of years.
The Gross Margin of SBUX (22.77%) is worse than 82.71% of its industry peers.
SBUX's Gross Margin has been stable in the last couple of years.
| 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
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 more shares outstanding
Compared to 5 years ago, SBUX has less shares outstanding
SBUX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.56 indicates that SBUX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.56, SBUX is doing good in the industry, outperforming 67.67% of the companies in the same industry.
The Debt to FCF ratio of SBUX is 6.58, which is on the high side as it means it would take SBUX, 6.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.58, SBUX is doing good in the industry, outperforming 72.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.53
WACC8.03%
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 63.16% of its industry peers.
A Quick Ratio of 0.51 indicates that SBUX may have some problems paying its short term obligations.
SBUX's Quick ratio of 0.51 is on the low side compared to the rest of the industry. SBUX is outperformed by 71.43% of its industry peers.
| 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.
Looking at the last year, SBUX shows a small growth in Revenue. The Revenue has grown by 2.79% in the last 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
The Earnings Per Share is expected to grow by 25.22% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y9.44%
EPS Next 2Y17.42%
EPS Next 3Y18.01%
EPS Next 5Y25.22%
Revenue Next Year3.38%
Revenue Next 2Y5.21%
Revenue Next 3Y5.33%
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.
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 39.61, 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 rather expensive valuation when compared to the S&P500 average which is at 26.39.
With a Price/Forward Earnings ratio of 36.19, 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 (23.84), we can say SBUX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.61 | ||
| Fwd PE | 36.19 |
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 70.68% 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 | 41.13 | ||
| EV/EBITDA | 21.08 |
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.
A more expensive valuation may be justified as SBUX's earnings are expected to grow with 18.01% in the coming years.
PEG (NY)4.19
PEG (5Y)2.84
EPS Next 2Y17.42%
EPS Next 3Y18.01%
5. Dividend
5.1 Amount
SBUX has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
SBUX's Dividend Yield is rather good when compared to the industry average which is at 1.54. SBUX pays more dividend than 84.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SBUX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
On average, the dividend of SBUX grows each year by 8.39%, which is quite nice.
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)8.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
149.29% 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.
DP149.29%
EPS Next 2Y17.42%
EPS Next 3Y18.01%
88.33
-1.09 (-1.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.78%
Inst Owner Change-2.81%
Ins Owners0.07%
Ins Owner Change0.6%
Market Cap100.44B
Revenue(TTM)37.18B
Net Income(TTM)1.86B
Analysts71.3
Price Target95.94 (8.62%)
Short Float %3.8%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend2.44
Dividend Growth(5Y)8.39%
DP149.29%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.63%
Min EPS beat(2)-9.45%
Max EPS beat(2)-7.8%
EPS beat(4)1
Avg EPS beat(4)-8.34%
Min EPS beat(4)-17.35%
Max EPS beat(4)1.24%
EPS beat(8)1
Avg EPS beat(8)-10.08%
EPS beat(12)4
Avg EPS beat(12)-5.3%
EPS beat(16)6
Avg EPS beat(16)-3.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.34%
Revenue beat(8)1
Avg Revenue beat(8)-2.95%
Revenue beat(12)2
Avg Revenue beat(12)-2.4%
Revenue beat(16)2
Avg Revenue beat(16)-2.07%
PT rev (1m)-1.52%
PT rev (3m)-3.95%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-13.07%
EPS NY rev (1m)-4.1%
EPS NY rev (3m)-10.69%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.7%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.61 | ||
| Fwd PE | 36.19 | ||
| P/S | 2.7 | ||
| P/FCF | 41.13 | ||
| P/OCF | 21.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.08 |
EPS(TTM)2.23
EY2.52%
EPS(NY)2.44
Fwd EY2.76%
FCF(TTM)2.15
FCFY2.43%
OCF(TTM)4.18
OCFY4.73%
SpS32.7
BVpS-7.12
TBVpS-10.23
PEG (NY)4.19
PEG (5Y)2.84
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | N/A | ||
| ROCE | 16.42% | ||
| ROIC | 12.29% | ||
| ROICexc | 14.62% | ||
| ROICexgc | 18.11% | ||
| OM | 9.63% | ||
| PM (TTM) | 4.99% | ||
| GM | 22.77% | ||
| FCFM | 6.57% |
ROA(3y)10.6%
ROA(5y)11.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.7%
ROIC(5y)16.57%
ROICexc(3y)20.24%
ROICexc(5y)20.6%
ROICexgc(3y)25.14%
ROICexgc(5y)26.08%
ROCE(3y)22.32%
ROCE(5y)22.18%
ROICexgc growth 3Y-12.47%
ROICexgc growth 5Y15.97%
ROICexc growth 3Y-11.56%
ROICexc growth 5Y17.16%
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%
F-Score5
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 130.14% | ||
| Cap/Sales | 6.2% | ||
| Interest Coverage | 6.09 | ||
| Cash Conversion | 88.7% | ||
| Profit Quality | 131.54% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.56 |
F-Score5
WACC8.03%
ROIC/WACC1.53
Cap/Depr(3y)155.16%
Cap/Depr(5y)136.46%
Cap/Sales(3y)6.79%
Cap/Sales(5y)6.23%
Profit Quality(3y)102.96%
Profit Quality(5y)98.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.63%
EPS 3Y-9.01%
EPS 5Y13.96%
EPS Q2Q%-35%
EPS Next Y9.44%
EPS Next 2Y17.42%
EPS Next 3Y18.01%
EPS Next 5Y25.22%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y4.86%
Revenue growth 5Y9.6%
Sales Q2Q%5.46%
Revenue Next Year3.38%
Revenue Next 2Y5.21%
Revenue Next 3Y5.33%
Revenue Next 5Y10.08%
EBIT growth 1Y-30.21%
EBIT growth 3Y-7.09%
EBIT growth 5Y17.82%
EBIT Next Year55.43%
EBIT Next 3Y26.49%
EBIT Next 5Y26.87%
FCF growth 1Y-26.4%
FCF growth 3Y-1.51%
FCF growth 5Y84.51%
OCF growth 1Y-22.12%
OCF growth 3Y2.59%
OCF growth 5Y24.33%
STARBUCKS CORP / SBUX FAQ
What is the fundamental rating for SBUX stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBUX.
Can you provide the valuation status for STARBUCKS CORP?
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 is the earnings growth outlook for STARBUCKS CORP?
The Earnings per Share (EPS) of STARBUCKS CORP (SBUX) is expected to grow by 9.44% in the next year.
Can you provide the dividend sustainability for SBUX stock?
The dividend rating of STARBUCKS CORP (SBUX) is 6 / 10 and the dividend payout ratio is 149.29%.