Starbucks Corp.Find Ratings Reports
STARBUCKS CORP's gross profit margin for the second quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. STARBUCKS CORP has weak liquidity. Currently, the Quick Ratio is 0.76 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 decreased by 15.94% 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||Q2 FY18||Q2 FY17|
|Net Sales ($mil)||6031.8||5294.1|
|Net Income ($mil)||660.1||652.7|
|Balance Sheet||Q2 FY18||Q2 FY17|
|Cash & Equiv. ($mil)||2242.5||2394.9|
|Total Assets ($mil)||17553.5||14227.9|
|Total Debt ($mil)||6534.8||3967.5|
|Profitability||Q2 FY18||Q2 FY17|
|Gross Profit Margin||26.4||27.04|
|Return on Assets||25.01||20.8|
|Return on Equity||93.19||52.8|
|Debt||Q2 FY18||Q2 FY17|
|Share Data||Q2 FY18||Q2 FY17|
|Shares outstanding (mil)||1382.4||1447.7|
|Div / share||0.3||0.25|
|Book value / share||3.41||3.87|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||8173733.0||1.0933864E7|
BUY. The current P/E ratio indicates a significant discount compared to an average of 29.66 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 24.83. For additional comparison, its price-to-book ratio of 16.93 indicates a significant premium versus the S&P 500 average of 3.22 and a significant premium versus the industry average of 9.22. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, STARBUCKS CORP seems to be trading at a discount to investment alternatives within the industry.
|SBUX 18.91||Peers 29.66||SBUX 17.85||Peers 17.36|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
SBUX is trading at a significant discount to its peers.
Average. 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 valuation on par to its peers.
|SBUX 20.97||Peers 23.30||SBUX 0.71||Peers 2.48|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
SBUX is trading at a valuation on par with 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 16.93||Peers 9.22||SBUX 51.74||Peers 64.81|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SBUX is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SBUX is expected to trail its peers on the basis of its earnings growth rate.
|SBUX 3.40||Peers 3.57||SBUX 6.77||Peers 9.29|
Average. 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 valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
SBUX significantly trails its peers on the basis of sales growth