Starbucks Stock Analysis, Valuation (NASDAQ:SBUX)

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$52.22 $5.21 (9.07%) SBUX stock closing price Jun 20, 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 3.2/5

Amigobulls SBUX stock analysis uses latest quarter 2018 Q2 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's revenue growth came in at 13.9% in 2018-03.
  • Starbucks's average operating margin of 16.86 was exceptional.
  • LTM Net margins were good at 18.7% for Starbucks.
  • Starbucks generates a high return on invested capital of 34.7.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Starbucks at 80.1.

Should you sell SBUX stock?

  • Starbucks has a debt/equity ratio of 1.38, which is worse than the average in the -sectordesc- sector.
  • Cash flow from operations is 0.6885 times net income which is a negative signal.
  • The company is trading at a price to sales multiple of 3.1, which is overvalued in comparison to the Retail-Wholesale sector average multiple of 0.8.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -6.8.

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.