Are Investors Undervaluing Starbucks Corporation (NASDAQ:SBUX) By 31%?
Jul 04
U.S. Hospitality Industry Analysis
UpdatedJul 05, 2024
DataAggregated Company Financials
Companies154
- 7D-0.6%
- 3M-4.7%
- 1Y10.8%
- YTD8.4%
The Hospitality is pretty flat in the last 7 days, but Flutter Entertainment has stood out, gaining 6.1%. As for the the longer term, the industry is up 11% over the past 12 months. As for the next few years, earnings are expected to grow by 21% per annum.
Industry Valuation and Performance
Has the U.S. Hospitality Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 05 Jul 2024 | US$691.8b | US$296.5b | US$19.8b | 19.5x | 34.9x | 2.3x |
| Sun, 02 Jun 2024 | US$651.9b | US$283.2b | US$20.7b | 18.6x | 31.6x | 2.3x |
| Tue, 30 Apr 2024 | US$680.7b | US$280.9b | US$20.8b | 20.2x | 32.7x | 2.4x |
| Thu, 28 Mar 2024 | US$699.7b | US$278.8b | US$20.2b | 20.4x | 34.7x | 2.5x |
| Sat, 24 Feb 2024 | US$661.4b | US$272.9b | US$19.7b | 20x | 33.6x | 2.4x |
| Mon, 22 Jan 2024 | US$619.1b | US$269.0b | US$18.0b | 19.4x | 34.4x | 2.3x |
| Wed, 20 Dec 2023 | US$631.9b | US$267.5b | US$16.5b | 20.8x | 38.3x | 2.4x |
| Fri, 17 Nov 2023 | US$587.8b | US$265.7b | US$15.6b | 21.4x | 37.8x | 2.2x |
| Sun, 15 Oct 2023 | US$535.2b | US$258.0b | US$10.2b | 19.3x | 52.2x | 2.1x |
| Tue, 12 Sep 2023 | US$596.7b | US$255.3b | US$8.3b | 18.4x | 72.3x | 2.3x |
| Thu, 10 Aug 2023 | US$613.8b | US$253.7b | US$7.9b | 21.4x | 77.7x | 2.4x |
| Sat, 08 Jul 2023 | US$603.5b | US$244.8b | US$5.2b | 20x | 116.6x | 2.5x |
| Mon, 05 Jun 2023 | US$578.3b | US$240.9b | US$3.2b | 19.8x | 183.3x | 2.4x |
| Wed, 03 May 2023 | US$673.2b | US$251.9b | US$3.3b | 19.9x | 204.9x | 2.7x |
| Fri, 31 Mar 2023 | US$651.2b | US$248.1b | US$2.0b | 20x | 326.9x | 2.6x |
| Sun, 26 Feb 2023 | US$622.9b | US$236.6b | US$1.1b | 19x | 553.3x | 2.6x |
| Tue, 24 Jan 2023 | US$672.4b | US$235.1b | US$1.2b | 19x | 552.2x | 2.9x |
| Thu, 22 Dec 2022 | US$585.6b | US$232.3b | US$280.4m | 17.5x | 2088.4x | 2.5x |
| Sat, 19 Nov 2022 | US$602.9b | US$230.5b | US$302.0m | 18.6x | 1996.2x | 2.6x |
| Mon, 17 Oct 2022 | US$535.0b | US$218.9b | -US$2,737,480,545.00 | 17.9x | -195.4x | 2.4x |
| Wed, 14 Sep 2022 | US$624.1b | US$215.3b | -US$4,898,694,296.00 | 18.1x | -127.4x | 2.9x |
| Fri, 12 Aug 2022 | US$618.0b | US$213.2b | -US$5,417,589,481.00 | 17.8x | -114.1x | 2.9x |
| Sun, 10 Jul 2022 | US$534.1b | US$200.6b | -US$13,580,974,985.00 | 17.4x | -39.3x | 2.7x |
| Tue, 07 Jun 2022 | US$627.0b | US$196.7b | -US$13,017,514,102.00 | 17.7x | -48.2x | 3.2x |
| Thu, 05 May 2022 | US$665.6b | US$189.3b | -US$14,227,747,219.00 | 19.4x | -46.8x | 3.5x |
| Sat, 02 Apr 2022 | US$736.2b | US$185.4b | -US$15,897,662,666.00 | 20.3x | -46.3x | 4x |
| Mon, 28 Feb 2022 | US$748.9b | US$181.8b | -US$17,691,342,662.00 | 22.3x | -42.3x | 4.1x |
| Wed, 26 Jan 2022 | US$647.3b | US$163.3b | -US$25,698,078,993.00 | 23.3x | -25.2x | 4x |
| Fri, 24 Dec 2021 | US$709.3b | US$163.2b | -US$25,687,072,123.00 | 24.3x | -27.6x | 4.3x |
| Sun, 21 Nov 2021 | US$735.1b | US$160.0b | -US$24,630,311,276.00 | 24.4x | -29.8x | 4.6x |
| Tue, 19 Oct 2021 | US$727.9b | US$142.2b | -US$28,662,159,871.00 | 26.5x | -25.4x | 5.1x |
| Thu, 16 Sep 2021 | US$674.8b | US$141.2b | -US$29,127,932,374.78 | 23.1x | -23.2x | 4.8x |
| Sat, 14 Aug 2021 | US$642.0b | US$133.6b | -US$28,318,217,983.75 | 24.4x | -22.7x | 4.8x |
Price to Earnings Ratio
-22x
Current Industry PE
- Investors are pessimistic on the American Hospitality industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 34.9x which is lower than its 3-year average PE of 146x.
- The 3-year average PS ratio of 3.0x is higher than the industry's current PS ratio of 2.3x.
Past Earnings Growth
- Total earnings for the Hospitality industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 30% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Discretionary industry?
| US Market | 1.03% | |
| Consumer Discretionary | 2.20% | |
| Hospitality | -0.59% | |
| Casinos and Gaming | 0.18% | |
| Hotels, Resorts and Cruise Lines | -0.025% | |
| Restaurants | -1.51% | |
| Leisure Facilities | -3.03% | |
Industry PE
- Investors are most optimistic about the Casinos and Gaming industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 35.3%, which is higher than its past year's earnings decline of 0.7% per year.
- Investors are most pessimistic about the Hotels, Resorts and Cruise Lines industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 4.2x.
Forecasted Growth
- Analysts are most optimistic on the Casinos and Gaming industry, expecting annual earnings growth of 35% over the next 5 years.
- This is better than its past earnings decline of 0.7% per year.
- In contrast, the Hotels, Resorts and Cruise Lines industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| FLUT Flutter Entertainment | US$193.92 | 6.1% +US$2.0b | 4.5% | PS2.8x | |
| TCOM Trip.com Group | US$49.66 | 4.5% +US$1.4b | 47.3% | PE21.7x | |
| ABNB Airbnb | US$152.73 | 0.7% +US$711.0m | 19.2% | PE19.6x | |
| VIK Viking Holdings | US$34.15 | 4.4% +US$635.1m | n/a | PS3.1x | |
| MMYT MakeMyTrip | US$88.78 | 6.9% +US$621.7m | 235.3% | PE44.7x |
