About Starbucks Corporation
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Starbucks Corporation (SBUX) is a Consumer Cyclical company in the Restaurants industry with a market capitalisation of $112.6B. The stock trades at 57.08x trailing earnings and yields 2.5%.
- Sector
- Consumer Cyclical
- Industry
- Restaurants
- Market cap
- $112.6B
- P/E ratio
- 57.08
- Forward P/E
- 31.63
- EPS (TTM)
- $1.73
- Revenue (TTM)
- $38.3B
- Free cash flow
- $3.1B
- Profit margin
- 5.2%
- Dividend yield
- 2.5%
- Beta
- 0.96
- Shares outstanding
- 1.1B
Financial health: Weak4.1/10
3 strengths, 5 concerns. Weakest points: net debt vs cash flow, current ratio, return on equity and 2 more.
- Debt to equity: -1.99 (Strong, benchmark < 0.5) — Debt of -1.99x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 5.2y (Concern, benchmark < 4 years) — Net debt of $12.6B is 5.2x annual free cash flow — about 5 years of cash flow to repay.
- Current ratio: 0.72 (Concern, benchmark > 1.5) — Short-term assets cover only 0.72x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: -22.9% (Concern, benchmark > 15%) — Earns -22.9% on shareholder equity, well short of the > 15% mark.
- Gross margin: 22.3% (Watch, benchmark > 40%) — Keeps 22.3% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 5.2% (Watch, benchmark > 10%) — Turns 5.2% of revenue into profit, short of the > 10% mark.
- Free cash flow: $2.4B (Strong, benchmark positive) — Generated $2.4B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: -1.4% (Concern, benchmark > 10%) — Revenue changed -1.4% year on year, well short of the > 10% mark.
- Earnings growth: 85.7% (Strong, benchmark > 10%) — Earnings changed 85.7% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.19 (Watch, benchmark < 1) — At 1.19, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 142.8% (Concern, benchmark < 60%) — Pays out 142.8% of earnings as dividends — above the level usually considered sustainable.