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

Established dividend payer with imperfect balance sheet.


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

0.6%

SBUX

2.0%

US Hospitality

1.0%

US Market


1 Year Return

52.2%

SBUX

3.5%

US Hospitality

6.7%

US Market

Return vs Industry: SBUX exceeded the US Hospitality industry which returned 3.5% over the past year.

Return vs Market: SBUX exceeded the US Market which returned 6.7% over the past year.


Share holder returns

SBUXIndustryMarket
7 Day0.6%2.0%1.0%
30 Day-4.6%-5.5%-1.8%
90 Day-4.1%-6.1%-1.8%
1 Year55.1%52.2%6.0%3.5%9.1%6.7%
3 Year73.7%63.7%44.0%34.6%46.1%36.6%
5 Year152.2%131.2%42.7%26.9%66.9%48.6%

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?

30.58x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: SBUX ($86.36) is trading above our estimate of fair value ($55.75)

Significantly Undervalued: SBUX is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: SBUX is poor value based on its PE Ratio (30.6x) compared to the Hospitality industry average (23x).

PE vs Market: SBUX is poor value based on its PE Ratio (30.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: SBUX is poor value based on its PEG Ratio (4.7x)


Price Based on Value of Assets

PB vs Industry: SBUX has negative assets, so we can't compare its PB Ratio 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?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SBUX's forecast earnings growth (6.5% per year) is above the savings rate (2.7%).

Earnings vs Market: SBUX's earnings (6.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: SBUX's earnings are forecast to grow, but not significantly.

Revenue vs Market: SBUX's revenue (6.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SBUX's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if SBUX'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?

15.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SBUX's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: SBUX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SBUX had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).


Return on Equity

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


Return on Assets

ROA vs Industry: SBUX has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: SBUX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Starbucks's financial position?


Financial Position Analysis

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

Long Term Liabilities: SBUX 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: SBUX has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: SBUX's debt is well covered by operating cash flow (111.4%).

Interest Coverage: SBUX's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

Inventory Level: SBUX has a high level of physical assets or inventory.

Debt Coverage by Assets: SBUX 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?

2.10%

Expected Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.3%forecastin3Years2.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SBUX's dividend (1.67%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SBUX's dividend (1.67%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51%), SBUX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBUX's dividends in 3 years are forecast to be covered by earnings (52.9% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Kevin Johnson (58yo)

2.5yrs

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

Compensation vs. Market: Kevin's total compensation ($USD13.38M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

57yo

Average Age

Experienced Management: SBUX's management team is considered experienced (2 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

58yo

Average Age

Experienced Board: SBUX's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


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: 1.3yrs
    • Compensation: US$30.18m
  • Kevin Johnson (58yo)

    CEO, President & Director

    • Tenure: 2.5yrs
    • Compensation: US$13.38m
  • Cliff Burrows (60yo)

    Group President of Siren Retail

    • Tenure: 3.1yrs
    • Compensation: US$5.58m
  • Roz Brewer (57yo)

    COO, Group President of Americas & Director

    • Tenure: 2.6yrs
    • Compensation: US$9.15m
  • Gerri Martin-Flickinger (56yo)

    Executive VP & CTO

    • Tenure: 3.9yrs
  • John Culver (59yo)

    Group President of International

    • Tenure: 2yrs
    • Compensation: US$5.91m
  • Pat Grismer (57yo)

    CFO & Executive VP

    • Tenure: 0.9yrs
  • Rachel Gonzalez (49yo)

    Executive VP

    • Tenure: 1.5yrs
  • Ash Mishra

    Senior VP

    • Tenure: 0.8yrs
  • Jill Walker (47yo)

    Senior VP of Corporate Financial Services & Chief Accounting Officer

    • Tenure: 0.6yrs

Board Members

  • Howard Schultz (66yo)

    Founder & Chairman Emeritus

    • Tenure: 1.3yrs
    • Compensation: US$30.18m
  • Mike Ullman (72yo)

    Independent Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$149.12k
  • Javier Garcia Teruel Herroz (68yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$149.12k
  • Kevin Johnson (58yo)

    CEO, President & Director

    • Tenure: 2.5yrs
    • Compensation: US$13.38m
  • Mellody Hobson (50yo)

    Independent Vice Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$254.52k
  • Mary Dillon (58yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$254.52k
  • Jørgen Knudstorp (50yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$149.12k
  • Roz Brewer (57yo)

    COO, Group President of Americas & Director

    • Tenure: 2.6yrs
    • Compensation: US$9.15m
  • Joshua Ramo (50yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$257.23k
  • Belinda Wong

    Chairman & CEO of Starbucks China

    • Tenure: 0.3yrs

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$103.373b
  • 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 Analysis2019/10/14 01:30
End of Day Share Price2019/10/11 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.

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