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 (3.3/5)
Our Starbucks stock opinion is based on fundamentals of the company. This Starbucks stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy SBUX stock?
- The Year Over Year (YoY) revenue growth for Starbucks was 6% in 2017 Q2.
- Starbucks's average operating margin of 19.7% was exceptional.
- Net margins stood at a healthy 13.5% (average) for Starbucks in the Trailing Twelve Months.
- Starbucks has an attractive ROIC (Return on Invested Capital) of 38%
- The LTM ROE of 52.6% for Starbucks is attractive.
Should you sell SBUX stock?
- Starbucks is debt laden and has a high debt/equity ratio of 0.71.
- The company has an operating cash flow which is 0.7 times the net income. This is not a healthy sign.
- The SBUX stock currently trades at a PE of 28.7, which is expensive, compared to the industry average of 17.4.
- The company is trading at a price to sales multiple of 3.9, which is higher in comparison to the Retail-Food and Restaurants industry average of 0.7, making SBUX stock expensive.