Starbucks CorpFind Ratings Reports
STARBUCKS CORP's gross profit margin for the second quarter of its fiscal year 2017 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 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 10.01% 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.
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|Income Statement||Q2 FY17||Q2 FY16|
|Net Sales ($mil)||5294.1||4993.3|
|Net Income ($mil)||653.1||575.0|
|Balance Sheet||Q2 FY17||Q2 FY16|
|Cash & Equiv. ($mil)||2394.9||1417.6|
|Total Assets ($mil)||14227.9||12519.4|
|Total Debt ($mil)||3967.5||2996.5|
|Profitability||Q2 FY17||Q2 FY16|
|Gross Profit Margin||27.05||27.58|
|Return on Assets||20.8||20.3|
|Return on Equity||52.8||49.89|
|Debt||Q2 FY17||Q2 FY16|
|Share Data||Q2 FY17||Q2 FY16|
|Shares outstanding (mil)||1447.7||1464.5|
|Div / share||0.25||0.2|
|Book value / share||3.87||3.48|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||8888519.0||9201310.0|
BUY. The current P/E ratio indicates a discount compared to an average of 36.58 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.54. For additional comparison, its price-to-book ratio of 16.25 indicates a significant premium versus the S&P 500 average of 3.06 and a significant premium versus the industry average of 11.15. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|SBUX 31.29||Peers 36.58||SBUX 21.11||Peers 19.54|
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.
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 25.99||Peers 25.87||SBUX 2.97||Peers 1.65|
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.
Premium. 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 premium to its peers.
|SBUX 16.25||Peers 11.15||SBUX 18.93||Peers 120.34|
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 significantly trail its peers on the basis of its earnings growth rate.
|SBUX 4.14||Peers 3.39||SBUX 8.99||Peers 4.07|
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 premium to its industry on this measurement.
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.