Starbucks CorpFind Ratings Reports
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 its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. STARBUCKS CORP has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.30% 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||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||5237.9||4881.1|
|Net Income ($mil)||754.2||626.6|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||2316.3||2175.2|
|Total Assets ($mil)||13833.2||12868.8|
|Total Debt ($mil)||3602.2||2897.2|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||28.84||28.75|
|Return on Assets||19.29||20.92|
|Return on Equity||46.65||45.97|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||1466.4||1490.8|
|Div / share||0.2||0.16|
|Book value / share||3.9||3.93|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||8368590.0||8949132.0|
BUY. STARBUCKS CORP's P/E ratio indicates a premium compared to an average of 29.56 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.64. To use another comparison, its price-to-book ratio of 13.73 indicates a significant premium versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 35.93. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, STARBUCKS CORP seems to be trading at a premium to investment alternatives within the industry.
|SBUX 29.94||Peers 29.56||SBUX 18.56||Peers 13.61|
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.
Premium. 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 significant premium to its peers.
|SBUX 24.93||Peers 25.37||SBUX 7.80||Peers 2.63|
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 13.73||Peers 35.93||SBUX 0.84||Peers 33.71|
Discount. 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.
SBUX is trading at a significant discount 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 3.83||Peers 2.80||SBUX 11.34||Peers 6.81|
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.