Starbucks Stock Analysis, Valuation (NASDAQ:SBUX)

Add to My Stocks
$52.75 $0.16 (0.3%) SBUX stock closing price Aug 15, 2018 (Closing)

Watch the robo advisor video of Starbucks stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for SBUX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Starbucks Corporation Stock Rating 3.3/5

Amigobulls SBUX stock analysis uses latest quarter 2018 Q3 financial data like Starbucks revenue growth, profit margins and cash flows. Starbucks valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Starbucks stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy SBUX stock?

  • Starbucks sales grew by 11.5% year on year in 2018-06.
  • Starbucks had a healthy average operating margin of 16.38 over the last 4 quarters.
  • Net margins came in at average 18.9% for Starbucks over the last twelve months.
  • Starbucks has a good Return On Equity (ROE) of 83.6.

Should you sell SBUX stock?

  • SBUX stock is trading at a PS multiple of 3, which is a negative when compared to the Retail-Wholesale sector average multiple of 0.8.

Comments on this video and Starbucks stock

Investors can use Amigobulls Starbucks stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Starbucks revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.