Starbucks Corp

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SBUX : NASDAQ : Services
$57.90 | %
Today's Range: 57.20 - 58.24
Avg. Daily Volume: 8,695,800
07/22/16 - 4:00 PM ET

Financial Analysis


STARBUCKS CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)5237.94881.1
EBITDA ($mil)1187.21114.9
EBIT ($mil)939.6878.4
Net Income ($mil)754.2626.6


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)0.02175.2
Total Assets ($mil)0.012868.8
Total Debt ($mil)0.02897.2
Equity ($mil)0.05856.5


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin28.8428.75
EBITDA Margin22.6622.84
Operating Margin17.9418.0
Sales Turnover0.01.43
Return on Assets0.020.92
Return on Equity0.045.97
Debt Q3 FY16 Q3 FY15
Current Ratio0.01.18
Debt/Capital0.00.33
Interest Expense21.819.1
Interest Coverage43.145.99


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1464.51490.8
Div / share0.20.16
EPS0.510.41
Book value / share0.03.93
Institutional Own % n/a n/a
Avg Daily Volume9043070.09681997.0

Valuation


BUY. STARBUCKS CORP's P/E ratio indicates a premium compared to an average of 28.27 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.05. 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 seems to be trading at a premium 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 32.18 Peers 28.27   SBUX NA Peers 13.95

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

SBUX is trading at a premium to 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 26.30 Peers 24.99   SBUX 8.38 Peers 2.68

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SBUX NA Peers 11.48   SBUX 0.84 Peers 18.32

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.

 

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 4.11 Peers 2.92   SBUX 11.34 Peers 8.46

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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