STARBUCKS CORP's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. STARBUCKS CORP has weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 18.16% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||4803.2||4239.6|
|Net Income ($mil)||983.1||540.7|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||1953.1||1702.8|
|Total Assets ($mil)||12351.1||10255.2|
|Total Debt ($mil)||2048.4||2047.9|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||28.46||27.23|
|Return on Assets||20.32||1.13|
|Return on Equity||43.46||2.38|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||750.4||756.5|
|Div / share||0.32||0.26|
|Book value / share||7.7||6.46|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4861896.0||4740361.0|
BUY. The current P/E ratio indicates a discount compared to an average of 33.55 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 19.72. To use another comparison, its price-to-book ratio of 12.70 indicates a significant premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 14.63. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, STARBUCKS CORP proves to trade at a discount to investment alternatives within the industry.
|SBUX 29.62||Peers 33.55||SBUX 21.42||Peers 16.66|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
SBUX is trading at a discount to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
SBUX is trading at a significant premium to its peers.
|SBUX 26.53||Peers 27.42||SBUX 1.96||Peers 2.75|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
SBUX is trading at a premium to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
SBUX trades at a significant discount to its peers.
|SBUX 12.70||Peers 14.63||SBUX 2438.46||Peers 311.33|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SBUX is trading at a discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
SBUX is expected to have an earnings growth rate that significantly exceeds its peers.
|SBUX 4.31||Peers 3.06||SBUX 11.08||Peers 12.75|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SBUX is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
SBUX trails its peers on the basis of sales growth
Select the service that is right for you!COMPARE ALL SERVICES
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV