DB:SRB

Stock Analysis Report

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Executive Summary

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Starbucks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

SRB

-2.4%

DE Hospitality

-0.6%

DE Market


1 Year Return

-17.1%

SRB

-35.6%

DE Hospitality

3.0%

DE Market

Return vs Industry: SRB exceeded the German Hospitality industry which returned -34.9% over the past year.

Return vs Market: SRB underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

SRBIndustryMarket
7 Day-1.5%-2.4%-0.6%
30 Day-10.4%-18.4%-0.1%
90 Day-2.6%2.7%16.4%
1 Year-15.5%-17.1%-32.8%-35.6%5.2%3.0%
3 Year34.8%26.8%-50.4%-57.2%1.0%-6.9%
5 Year38.7%26.6%-50.4%-60.9%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Starbucks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Starbucks undervalued compared to its fair value and its price relative to the market?

25.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRB (€65.31) is trading above our estimate of fair value (€50.07)

Significantly Below Fair Value: SRB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SRB is poor value based on its PE Ratio (25.8x) compared to the Hospitality industry average (20.5x).

PE vs Market: SRB is poor value based on its PE Ratio (25.8x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: SRB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SRB has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

How is Starbucks forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

36.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRB's forecast earnings growth (36.5% per year) is above the savings rate (0.2%).

Earnings vs Market: SRB's earnings (36.5% per year) are forecast to grow faster than the German market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRB's revenue (11.2% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: SRB's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SRB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Starbucks performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRB has a high level of non-cash earnings.

Growing Profit Margin: SRB's current net profit margins (12.7%) are higher than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: SRB's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: SRB's earnings growth over the past year (11.8%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: SRB earnings growth over the past year (11.8%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: SRB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Starbucks's financial position?


Financial Position Analysis

Short Term Liabilities: SRB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SRB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SRB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SRB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: SRB's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: SRB's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Starbucks's current dividend yield, its reliability and sustainability?

2.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SRB's dividend (2.23%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: SRB's dividend (2.23%) is low compared to the top 25% of dividend payers in the German market (3.84%).


Stability and Growth of Payments

Stable Dividend: SRB's dividends per share have been stable in the past 10 years.

Growing Dividend: SRB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.8%), SRB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRB's dividends in 3 years are forecast to be covered by earnings (66% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Kevin Johnson (59yo)

3.25yrs

Tenure

US$19,241,950

Compensation

Mr. Kevin R. Johnson has been the Chief Executive Officer of Starbucks Corp since April 3, 2017 and has been its President since March 1, 2015. He has been a Director of Starbucks Corp since March 2009 and ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD19.24M) is above average for companies of similar size in the German market ($USD5.21M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Johnson
CEO, President & Director3.25yrsUS$19.24m0.015% $11.2m
Patrick Grismer
CFO & Executive VP1.67yrsUS$11.21m0.010% $8.0m
Rosalind Brewer
COO, Group President of Americas & Director3.33yrsUS$8.02m0.0035% $2.7m
John Culver
Group President of International13.5yrsUS$6.74m0.022% $17.2m
Lucy Helm
Executive VP & Chief Partner Officer2.92yrsUS$4.21m0.0065% $5.0m
Howard Schultz
Founder & Chairman Emeritus2.08yrsUS$30.18m3.06% $2.3b
Jill Walker
Senior VP of Corporate Financial Services & Chief Accounting Officer1.33yrsno data0.0031% $2.4m
Gerri Martin-Flickinger
Executive VP & CTO4.67yrsno datano data
Rachel Gonzalez
Executive VP2.25yrsno data0.0016% $1.2m
Ashish Mishra
Senior VP1.5yrsno datano data

2.8yrs

Average Tenure

58yo

Average Age

Experienced Management: SRB's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Johnson
CEO, President & Director3.25yrsUS$19.24m0.015% $11.2m
Rosalind Brewer
COO, Group President of Americas & Director3.33yrsUS$8.02m0.0035% $2.7m
Howard Schultz
Founder & Chairman Emeritus2.08yrsUS$30.18m3.06% $2.3b
Belinda Wong
Chairman & CEO of Starbucks China1.08yrsno datano data
Myron Ullman
Independent Chairman of the Board2.08yrsUS$452.82k0.0012% $919.7k
Javier Garcia Teruel Herroz
Independent Director14.83yrsUS$267.80k0.0087% $6.6m
Mellody Hobson
Independent Vice Chairman of the Board2.08yrsUS$369.97k0.052% $40.0m
Mary Dillon
Independent Director4.5yrsUS$287.86kno data
Jørgen Knudstorp
Independent Director3.33yrsUS$287.86k0.0015% $1.2m
Joshua Ramo
Independent Director9.17yrsUS$269.97k0.0032% $2.5m

3.3yrs

Average Tenure

59yo

Average Age

Experienced Board: SRB's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Starbucks Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Starbucks Corporation
  • Ticker: SRB
  • Exchange: DB
  • Founded: 1971
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$86.603b
  • Listing Market Cap: US$76.644b
  • Shares outstanding: 1.17b
  • Website: https://www.starbucks.com

Number of Employees


Location

  • Starbucks Corporation
  • 2401 Utah Avenue South
  • Seattle
  • Washington
  • 98134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBUXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1992
SRBDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1992
SBUX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1992
SRBXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1992
SBUXSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJun 1992
SBUXSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 1992
SBUXBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJun 1992
SBUXBIT (Borsa Italiana)YesCommon StockITEURJun 1992
SBUXWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1992
US_SBUXKAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTJun 1992
SBUXBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1 ORD COM USD0.001ARARSMay 2004
SBUB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.001BRBRLAug 2012

Biography

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in three segments: Americas; International; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, and iced tea; 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. It offers its products under the Starbucks, Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brand names. As of October 30, 2019, the company operated approximately 31,000 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:21
End of Day Share Price2020/07/09 00:00
Earnings2020/03/29
Annual Earnings2019/09/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.