Starbucks (SBUX) Stock Analysis
Here is a fundamental analysis of Starbucks (SBUX), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: SBUX | Industry group median |
|---|---|---|
| 1-Year Return | 12.13% | 1.05% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: SBUX | Industry group median |
|---|---|---|
| 1-Year Volatility | 28.52% | 44.02% |
| Beta | 0.97 | 1.03 |
Company Profile
| Profile Item | SBUX |
|---|---|
| Name | Starbucks Corporation |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Services |
| GICS Industry | Hotels, Restaurants & Leisure |
| GICS Sub-Industry | Restaurants |
| Market Capitalization | 117.43 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | June 26, 1992 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Starbucks (SBUX) trades at P/E ratio of 78.66, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.
SBUX
Consumer Services industry group
78.66
Group distribution
- SBUX
- 78.66
- Max
- 71.36
- Q3
- 40.24
- Median
- 22.08
- Q1
- 17.04
- Min
- 3.87
Largest peers
- SBUX
- 78.66
- HLT
- 52.74
- MAR
- 42.19
- ABNB
- 32.66
- MCD
- 23.48
- BKNG
- 21.73
- RCL
- 17.95
Price-to-Sales Ratio (TTM)
Starbucks (SBUX) trades at 3.05 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
SBUX
Consumer Services industry group
3.05
Group distribution
- Max
- 6.59
- Q3
- 3.16
- SBUX
- 3.05
- Median
- 1.68
- Q1
- 0.87
- Min
- 0.06
Largest peers
- HLT
- 15.53
- MAR
- 14.78
- MCD
- 7.37
- ABNB
- 6.21
- BKNG
- 4.62
- RCL
- 4.29
- SBUX
- 3.05
Price-to-Book Ratio (MRQ)
Starbucks (SBUX) has negative P/B ratio of -13.87, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.
SBUX
Consumer Services industry group
-13.87
Group distribution
- Max
- 13.42
- Q3
- 6.34
- Median
- 2.54
- Q1
- 1.07
- Min
- -5.84
- SBUX
- -13.87
Largest peers
- ABNB
- 10.31
- RCL
- 8.05
- HLT
- -13.38
- SBUX
- -13.87
- BKNG
- -14.75
- MAR
- -26.04
- MCD
- -157.35
Valuation at a Glance
| Metric | Current stock: SBUX | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 78.66 | 22.08 |
| Price-to-Sales Ratio (TTM) | 3.05 | 1.68 |
| Price-to-Book Ratio (MRQ) | -13.87 | 2.54 |
| Free Cash Flow Yield | -1.11% | 4.08% |
Profitability
Return on Equity (TTM)
No usable ROE is available for Starbucks (SBUX) this period, so the shareholder-equity return read is skipped.
SBUX
Consumer Services industry group
--
Group distribution
- Max
- 52.89%
- Q3
- 29.07%
- Median
- 12.44%
- Q1
- 3.56%
- Min
- -26.11%
- SBUX
- --
Largest peers
- RCL
- 49.58%
- ABNB
- 32.33%
- SBUX
- --
- MCD
- --
- BKNG
- --
- MAR
- --
- HLT
- --
Net Profit Margin (TTM)
Starbucks (SBUX) keeps 3.89% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
SBUX
Consumer Services industry group
3.89%
Group distribution
- Max
- 24.47%
- Q3
- 12.35%
- Median
- 6.13%
- SBUX
- 3.89%
- Q1
- 1.16%
- Min
- -15.48%
Largest peers
- MAR
- 35.97%
- MCD
- 31.62%
- HLT
- 30.41%
- RCL
- 24.36%
- BKNG
- 22.23%
- ABNB
- 19.90%
- SBUX
- 3.89%
Operating Profit Margin (TTM)
Starbucks (SBUX) turns 8.42% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
SBUX
Consumer Services industry group
8.42%
Group distribution
- Max
- 44.25%
- Q3
- 20.10%
- Median
- 11.37%
- SBUX
- 8.42%
- Q1
- 3.21%
- Min
- -20.31%
Largest peers
- MAR
- 59.01%
- HLT
- 57.36%
- MCD
- 44.25%
- RCL
- 26.17%
- BKNG
- 25.04%
- SBUX
- 8.42%
- ABNB
- 3.21%
Profitability at a Glance
| Metric | Current stock: SBUX | Industry group median |
|---|---|---|
| Return on Equity (TTM) | -- | 12.44% |
| Return on Assets (TTM) | 7.38% | 5.05% |
| Net Profit Margin (TTM) | 3.89% | 6.13% |
| Operating Profit Margin (TTM) | 8.42% | 11.37% |
| Gross Profit Margin (TTM) | 21.90% | 44.16% |
Financial Strength
Current Ratio (MRQ)
Starbucks (SBUX) has current ratio of 0.92, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
SBUX
Consumer Services industry group
0.92
Group distribution
- Max
- 3.05
- Q3
- 1.72
- Median
- 0.99
- SBUX
- 0.92
- Q1
- 0.69
- Min
- 0.20
Largest peers
- ABNB
- 1.44
- MCD
- 1.14
- BKNG
- 1.06
- SBUX
- 0.92
- HLT
- 0.61
- MAR
- 0.46
- RCL
- 0.20
Debt-to-Equity Ratio (MRQ)
No usable debt-to-equity ratio is available for Starbucks (SBUX) this period, so the balance-sheet leverage read is skipped.
SBUX
Consumer Services industry group
--
Group distribution
- Max
- 7.23
- Q3
- 3.20
- Median
- 1.27
- Q1
- 0.35
- Min
- 0.01
- SBUX
- --
Largest peers
- RCL
- 2.17
- ABNB
- 0.33
- SBUX
- --
- MCD
- --
- BKNG
- --
- MAR
- --
- HLT
- --
Financial Strength at a Glance
| Metric | Current stock: SBUX | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.92 | 0.99 |
| Debt-to-Equity Ratio (MRQ) | -- | 1.27 |
| Net Debt / EBITDA | 4.21 | 3.48 |
Dividends
Dividend Yield (TTM)
Starbucks (SBUX) has dividend yield of 2.41%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
SBUX
Consumer Services industry group
2.41%
Group distribution
- Max
- 4.72%
- SBUX
- 2.41%
- Q3
- 1.94%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MCD
- 2.61%
- SBUX
- 2.41%
- RCL
- 1.70%
- BKNG
- 0.97%
- MAR
- 0.73%
- HLT
- 0.17%
- ABNB
- 0.00%
Dividend Payout Ratio (TTM)
Starbucks (SBUX) has payout ratio of 187.79%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.
SBUX
Consumer Services industry group
187.79%
Group distribution
- SBUX
- 187.79%
- Max
- 86.96%
- Q3
- 34.83%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- SBUX
- 187.79%
- MCD
- 59.85%
- MAR
- 28.06%
- RCL
- 25.93%
- BKNG
- 20.73%
- HLT
- 9.16%
- ABNB
- 0.00%
Dividends at a Glance
| Metric | Current stock: SBUX | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.41% | 0.00% |
| Dividend Payout Ratio (TTM) | 187.79% | 0.00% |