Starbucks Corp

Find Ratings Reports
SBUX : NASDAQ : Services
$58.08 -0.47 | -0.8%
Today's Range: 58.11 - 58.84
Avg. Daily Volume: 7428000.0
07/26/17 - 1:59 PM ET

Financial Analysis


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.

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 FY17 Q2 FY16
Net Sales ($mil)5294.14993.3
EBITDA ($mil)1105.11046.5
EBIT ($mil)851.5798.7
Net Income ($mil)653.1575.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2394.91417.6
Total Assets ($mil)14227.912519.4
Total Debt ($mil)3967.52996.5
Equity ($mil)5605.05094.6


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin27.0527.58
EBITDA Margin20.8720.95
Operating Margin16.0816.0
Sales Turnover1.541.61
Return on Assets20.820.3
Return on Equity52.849.89
Debt Q2 FY17 Q2 FY16
Current Ratio1.230.89
Debt/Capital0.410.37
Interest Expense22.918.3
Interest Coverage37.1843.64


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)1447.71464.5
Div / share0.250.2
EPS0.450.39
Book value / share3.873.48
Institutional Own % n/a n/a
Avg Daily Volume7950186.09908693.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 36.66 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 14.99 indicates a significant premium versus the S&P 500 average of 3.07 and a significant premium versus the industry average of 10.48. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SBUX 28.87 Peers 36.66   SBUX 19.48 Peers 19.65

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SBUX 23.93 Peers 24.85   SBUX 2.74 Peers 3.10

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SBUX 14.99 Peers 10.48   SBUX 18.93 Peers 117.69

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SBUX 3.82 Peers 3.35   SBUX 8.99 Peers 4.04

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.

 

 

Latest Stock Upgrades/Downgrades