STARBUCKS CORP (SBUX)
US8552441094 - Common Stock
Taking everything into account, SBUX scores 5 out of 10 in our fundamental rating. SBUX was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. SBUX has only an average score on both its financial health and profitability. SBUX is not overvalued while it is showing excellent growth. This is an interesting combination. Finally SBUX also has an excellent dividend rating.
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.
Each year in the past 5 years SBUX has been profitable.
SBUX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SBUX has a Return On Assets of 14.71%. This is amongst the best in the industry. SBUX outperforms 91.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.00%, SBUX belongs to the top of the industry, outperforming 92.54% 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 10.33%.
The 3 year average ROIC (18.26%) for SBUX is below the current ROIC(22.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.71% | ||
| ROE | N/A | ||
| ROIC | 22% |
ROA(3y)13.04%
ROA(5y)12.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.26%
ROIC(5y)16.66%
1.3 Margins
SBUX has a Profit Margin of 11.70%. This is in the better half of the industry: SBUX outperforms 77.61% of its industry peers.
In the last couple of years the Profit Margin of SBUX has declined.
The Operating Margin of SBUX (15.69%) is better than 67.16% 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 27.87%, SBUX is doing worse than 80.60% of the companies in the same industry.
In the last couple of years the Gross Margin of SBUX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.69% | ||
| PM (TTM) | 11.7% | ||
| GM | 27.87% |
OM growth 3Y31.83%
OM growth 5Y-0.05%
PM growth 3Y42.7%
PM growth 5Y-8.9%
GM growth 3Y8.02%
GM growth 5Y-1.6%
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.
SBUX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SBUX has been reduced compared to 5 years ago.
The debt/assets ratio for SBUX has been reduced compared to a year ago.
2.2 Solvency
SBUX has an Altman-Z score of 2.98. 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 has a Altman-Z score of 2.98. This is amongst the best in the industry. SBUX outperforms 80.60% of its industry peers.
SBUX has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as SBUX would need 3.42 years to pay back of all of its debts.
SBUX has a Debt to FCF ratio of 3.42. This is in the better half of the industry: SBUX outperforms 79.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 2.98 |
ROIC/WACC2.58
WACC8.54%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SBUX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.70, SBUX is doing worse than 67.91% of the companies in the same industry.
SBUX has a Quick Ratio of 0.70. 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 Quick ratio of 0.52. This is in the lower half of the industry: SBUX underperforms 73.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
SBUX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.75%, which is quite impressive.
Measured over the past years, SBUX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.60% on average per year.
SBUX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.46%.
Measured over the past years, SBUX shows a small growth in Revenue. The Revenue has been growing by 7.79% on average per year.
EPS 1Y (TTM)23.75%
EPS 3Y45.19%
EPS 5Y8.6%
EPS growth Q2Q20%
Revenue 1Y (TTM)11.46%
Revenue growth 3Y15.22%
Revenue growth 5Y7.79%
Revenue growth Q2Q8.16%
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 17.77% yearly.
Based on estimates for the next years, SBUX will show a quite strong growth in Revenue. The Revenue will grow by 10.08% on average per year.
EPS Next Y16.46%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
EPS Next 5Y17.77%
Revenue Next Year8.16%
Revenue Next 2Y8.92%
Revenue Next 3Y9.02%
Revenue Next 5Y10.08%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.93, the valuation of SBUX can be described as rather expensive.
SBUX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.20, SBUX is valued at the same level.
The Price/Forward Earnings ratio is 18.42, which indicates a rather expensive current valuation of SBUX.
67.16% of the companies in the same industry are more expensive than SBUX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.63. SBUX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
SBUX's Enterprise Value to EBITDA ratio is in line with the industry average.
65.67% of the companies in the same industry are more expensive than SBUX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.85 | ||
| EV/EBITDA | 15.23 |
4.3 Compensation for Growth
SBUX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SBUX may justify a higher PE ratio.
SBUX's earnings are expected to grow with 16.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)2.78
EPS Next 2Y16.37%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.62%, SBUX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.62, SBUX pays a better dividend. On top of this SBUX pays more dividend than 84.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SBUX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
On average, the dividend of SBUX grows each year by 10.79%, which is quite nice.
SBUX has paid a dividend for at least 10 years, which is a reliable track record.
SBUX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.79%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
SBUX pays out 57.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
SBUX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.58%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
STARBUCKS CORP
NASDAQ:SBUX (4/26/2024, 9:56:07 AM)
88.53
+0.69 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap100.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 18.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.45
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.71% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.69% | ||
| PM (TTM) | 11.7% | ||
| GM | 27.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)23.75%
EPS 3Y45.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.46%
Revenue growth 3Y15.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y