Starbucks Stock Analysis (NASDAQ:SBUX)

Add to My Stocks
$57.64 $0.07 (0.12%) SBUX stock closing price Feb 23, 2017 (Closing)
Watch Robo Advisor Video of SBUX Stock Analysis
Starbucks
Updated on : Feb 23, 2017
previous close
SBUX 57.6 (0%)
S&P 500 2363.8 (0%)
Closing Price On: Feb 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Food and Restaurants
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
19.6%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$1.5B
Net Income:
$751.8M
Dividend Yield
SBUX dividend yield:
1.47%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SBUX PS :
3.9
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
38.8%
Return on Equity:
50.6%
Free Cash Flow Margin:
20.7%
Double Tap To Exit Full Screen
0:00
/

Starbucks Analysis Video

10643 5 2

View Starbucks stock analysis video. This is our SBUX analyst opinion covering the buy and sell arguments for SBUX stock.

Starbucks Corporation Stock Rating (3.5/5)

Our Starbucks stock opinion is based on fundamentals of the company. This Starbucks stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy SBUX stock?

  • Starbucks sales grew by 6.7% year on year in 2017 Q1.
  • The TTM operating margin was good at 19.6% for Starbucks.
  • Net margins came in at average 13.3% for Starbucks over the last twelve months.
  • The operating cash flow looks good at 2 times the net income.
  • Starbucks has an attractive ROIC (Return on Invested Capital) of 38.8%
  • Starbucks has a good Return On Equity (ROE) of 50.6%.
  • The company has a good Free Cash Flow (FCF) margin of 20.7%.

Should you sell SBUX stock?

  • SBUX stock is trading at a PE ratio of 29.4, which is worse than the industry average multiple of 19.7.
  • SBUX stock is trading at a PS multiple of 3.9, which is a negative when compared to the Retail-Food and Restaurants industry average multiple of 0.8.

Comments on this video and Starbucks stock