Starbucks Stock Analysis, Valuation (NASDAQ:SBUX)

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$57.77 $0.7 (1.2%) SBUX stock closing price Mar 22, 2018 (Closing)
Watch Robo Advisor Video of SBUX Stock Analysis
Updated on : Mar 22, 2018
previous close
SBUX 58.5 (0%)
S&P 500 2711.9 (0%)
Closing Price On: Mar 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Food and Restaurants
Sector :
5 Quarter Revenue
Revenue Growth
Compared to the industry
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
SBUX dividend yield:
Operating Margins
Net Margins
FCF Margin
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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Starbucks Stock Analysis

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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 3.6/5

Amigobulls SBUX stock analysis uses latest quarter 2018 Q1 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 had a healthy average operating margin of 18.1% over the last 4 quarters.
  • Net margins came in at average 19.3% for Starbucks over the last twelve months.
  • Starbucks's return on invested capital of 37.9% is good.
  • The LTM ROE of 77% for Starbucks is attractive.
  • The company has a healthy free cash flow margin of 29.7%.

Should you sell SBUX stock?

  • Starbucks has a debt/equity ratio of  0.85, which is worse than the average in the Retail-Wholesale sector.
  • SBUX stock is trading at a PE ratio of 26.8, which is worse than the industry average multiple of 18.9.
  • The company is trading at a price to sales multiple of 3.7, which is overvalued in comparison to the Retail-Food and Restaurants industry average multiple of 0.7.

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.