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Starbucks Corp
SBUX : NASDAQ : Services
$57.93 | %
Today's Range: 57.73 - 58.44
Avg. Daily Volume: 7,264,200
07/31/15 - 4:00 PM ET

Financial Analysis


STARBUCKS CORP's gross profit margin for the third 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.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)4881.14153.7
EBITDA ($mil)1114.7875.8
EBIT ($mil)878.2695.7
Net Income ($mil)626.6512.7


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)0.01196.3
Total Assets ($mil)0.010385.3
Total Debt ($mil)0.02048.1
Equity ($mil)0.05068.8


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin28.7527.57
EBITDA Margin22.8321.08
Operating Margin17.9916.75
Sales Turnover0.01.55
Return on Assets0.02.39
Return on Equity0.04.89
Debt Q3 FY15 Q3 FY14
Current Ratio0.01.16
Debt/Capital0.00.29
Interest Expense19.116.4
Interest Coverage45.9842.42


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)1501.01502.0
Div / share0.160.13
EPS0.410.34
Book value / share0.03.37
Institutional Own % n/a n/a
Avg Daily Volume7395692.05159597.0

Valuation


BUY. STARBUCKS CORP's P/E ratio indicates a discount compared to an average of 32.92 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 21.18. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SBUX 31.86 Peers 32.92   SBUX NA Peers 17.01

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SBUX is trading at a valuation on par with its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SBUX 30.57 Peers 28.91   SBUX NM Peers 1.11

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SBUX NA Peers 8.97   SBUX 1083.33 Peers 158.68

Neutral. 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.

Ratio not available.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SBUX 4.61 Peers 3.08   SBUX 14.77 Peers 8.87

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SBUX has a sales growth rate that significantly exceeds its peers.

 

 

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