NasdaqGS:SBUX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

1.0%

NasdaqGS:SBUX

2.5%

US Hospitality

2.1%

US Market


1 Year Return

83.2%

NasdaqGS:SBUX

-4.7%

US Hospitality

-0.04%

US Market

SBUX outperformed the Hospitality industry which returned -4.2% over the past year.

SBUX outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

SBUXIndustryMarket
7 Day1.0%2.5%2.1%
30 Day7.1%-5.4%-3.2%
90 Day26.7%1.5%2.8%
1 Year86.7%83.2%-2.4%-4.7%2.2%-0.04%
3 Year78.8%68.4%45.5%36.3%41.5%32.3%
5 Year170.5%148.0%34.1%19.4%55.0%37.8%

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

Valuation

Is Starbucks undervalued based on future cash flows and its price relative to the stock market?

34.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Starbucks's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Starbucks's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Starbucks is overvalued based on earnings compared to the US Hospitality industry average.

Starbucks is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Starbucks is poor value based on expected growth next year.


Price Based on Value of Assets

Starbucks has negative assets, we can't compare the value of its assets to the US Hospitality industry average.


Next Steps

Future Growth

How is Starbucks expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Starbucks's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

Starbucks's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).

Starbucks's revenue growth is positive but not above the United States of America market average.

Starbucks's earnings growth is positive but not above the United States of America market average.

Starbucks's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Starbucks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Starbucks performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Starbucks's year on year earnings growth rate has been positive over the past 5 years.

Starbucks's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Starbucks's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.


Return on Equity

It is difficult to establish if Starbucks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Starbucks used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Starbucks's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Starbucks's financial position?


Financial Position Analysis

Starbucks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Starbucks's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Starbucks has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Starbucks's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (111.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Starbucks has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

1.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Starbucks's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Starbucks's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Starbucks has been paying a dividend for less than 10 years.

Dividend payments have increased, but Starbucks only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Starbucks's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Kevin Johnson (58yo)

2.3yrs

Tenure

US$13,382,480

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

Kevin's remuneration is about average for companies of similar size in United States of America.

Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Starbucks management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

58yo

Average Age

The average tenure for the Starbucks board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$4,989,45117 May 19
John Culver
EntityIndividual
Role
Unit President
Group President of International
Shares63,937
Max PriceUS$79.00

Ownership Breakdown


Management Team

  • Howard Schultz (66yo)

    Founder & Chairman Emeritus

    • Tenure: 1.2yrs
    • Compensation: US$30.18m
  • Kevin Johnson (58yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$13.38m
  • Cliff Burrows (60yo)

    Group President of Siren Retail

    • Tenure: 2.9yrs
    • Compensation: US$5.58m
  • Roz Brewer (57yo)

    COO, Group President of Americas & Director

    • Tenure: 2.4yrs
    • Compensation: US$9.15m
  • Gerri Martin-Flickinger (56yo)

    Executive VP & CTO

    • Tenure: 3.8yrs
  • John Culver (59yo)

    Group President of International

    • Tenure: 1.8yrs
    • Compensation: US$5.91m
  • Pat Grismer (57yo)

    CFO & Executive VP

    • Tenure: 0.8yrs
  • Rachel Gonzalez (49yo)

    Executive VP

    • Tenure: 1.3yrs
  • Ash Mishra

    Senior VP

    • Tenure: 0.6yrs
  • Jill Walker (47yo)

    Senior VP of Corporate Financial Services & Chief Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Howard Schultz (66yo)

    Founder & Chairman Emeritus

    • Tenure: 1.2yrs
    • Compensation: US$30.18m
  • Mike Ullman (72yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: US$149.12k
  • Javier Garcia Teruel Herroz (68yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$149.12k
  • Kevin Johnson (58yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$13.38m
  • Mellody Hobson (50yo)

    Vice Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: US$254.52k
  • Mary Dillon (58yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$254.52k
  • Jørgen Knudstorp (50yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$149.12k
  • Roz Brewer (57yo)

    COO, Group President of Americas & Director

    • Tenure: 2.4yrs
    • Compensation: US$9.15m
  • Joshua Ramo (50yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$257.23k
  • Belinda Wong

    Chairman & CEO of Starbucks China

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Starbucks Corporation
  • Ticker: SBUX
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$115.499b
  • Shares outstanding: 1.20b
  • 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
SBUXSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJun 1992
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
SBUXWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1992
SBUXBIT (Borsa Italiana)YesCommon StockITEURJun 1992
SBUXSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 1992
SBUXBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJun 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 four segments: Americas; China/Asia Pacific; Euro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:50
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.