Starbucks Stock Analysis (NASDAQ:SBUX)
Starbucks Analysis Video
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 Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy SBUX stock?
- Starbucks's revenue growth came in at 16.2% in 2016 Q4.
- Long term revenue growth has been strong with a 5 year compounded annual growth of .
- Starbucks had a healthy average operating margin of 19.6% over the last 4 quarters.
- LTM Net margins were good at 13.2% for Starbucks.
- The company has an operating cash flow which is 1.6 times the net income. We see this as a positive signal.
- Starbucks's return on invested capital of 38.2% is good.
- Starbucks has a good Return On Equity (ROE) of 49.4%.
- Starbucks has a healthy FCF (Free Cash Flow) margin of 15.7%.
Should you sell SBUX stock?
- Starbucks has a debt/equity ratio of 0.61, which is worse than the average in the Retail-Wholesale sector.
- The SBUX stock currently trades at a PE of 30.3, which is expensive, compared to the industry average of 19.5.
- The company is trading at a price to sales multiple of 4, which is higher in comparison to the Retail-Food and Restaurants industry average of 0.8, making SBUX stock expensive.