Starbucks Corp
Exchange: NASDAQSector: Consumer CyclicalIndustry: Restaurants
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 40,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup.
Did you know?
Net income compounded at -10.4% annually over 6 years.
Current Price
$97.21
+2.10%GoodMoat Value
$67.14
30.9% overvaluedProfile
Valuation (TTM)
Market Cap$110.54B
P/E80.74
EV$128.57B
P/B—
Shares Out1.14B
P/Sales2.93
Revenue$37.70B
EV/EBITDA28.94
Starbucks Corp (SBUX) Stock Analysis
GoodMoat Analysis
Starbucks is a globally dominant coffee chain with a powerful brand and scale moat, but its current valuation appears stretched relative to its modest growth and profitability. The stock trades at a significant premium to the GoodMoat target price, suggesting a low margin of safety. For a value investor, this profile warrants a cautious, 'with caution' assessment.
Read full analysis
Starbucks operates a global chain of coffeehouses, selling beverages, food, and packaged goods. Applying the GoodMoat framework, the company demonstrates a durable competitive advantage, primarily through its powerful brand and culture (Moat Criterion 6) and massive scale privilege (Criterion 8). Its global footprint and customer loyalty create high switching costs and pricing power, likely earning it a Moat Score above the 5+ threshold for a durable advantage. However, recent financial metrics show a business with slowing growth and compressed profitability. Revenue growth is a modest 5.5% YoY, and its profit margin of 3.6% and operating margin of 7.2% are low for a premium brand. The P/E of 77 is extremely high, especially for this growth rate, and the Free Cash Flow Yield of 2.3% is not compelling. The GoodMoat target price of $67.14 suggests the current price of $92.7 offers a negative margin of safety. Following the Decision Framework, Starbucks likely passes the Moat & Quality Gate but fails the Valuation & Risk Gate. The extreme valuation, margin compression, and low growth against a high multiple represent High Confidence Red Flags. The integration points to an assessment of 'with caution,' as the stock price requires near-perfect future execution and offers no margin of safety for a value-oriented investor. Analysis based on data as of 2024-05-15.
Market Cap$110.54B
Current Price$97.21
P/E Ratio80.74
Forward P/E—
PEG Ratio-1.30
EPS$1.63
Book Value$-7.12
P/B Ratio—
SBUX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -4.6% FCF growth (CAGR)
Cash vs Debt
Net Debt: 23.4B
Revenue
26.5B
FY19
23.5B
FY20
29.1B
FY21
32.3B
FY22
36.0B
FY23
36.2B
FY24
37.2B
FY25
Net Income
3.6B
FY19
928M
FY20
4.2B
FY21
3.3B
FY22
4.1B
FY23
3.8B
FY24
1.9B
FY25
SBUX 52-Week Range
$77.38
$101.44
50-Day MA: $95.37200-Day MA: $88.67
Did you know?
SBUX's revenue grew at a 5.8% CAGR over the last 6 years.
Starbucks Corp (SBUX) Financial Summary
Starbucks Corp (SBUX) is a Consumer Cyclical company in the Restaurants industry, listed on NASDAQ. The stock currently trades at $97.21 with a market capitalization of $110.54B.
Key valuation metrics include a P/E ratio of 80.74, and EPS of $1.63. The company reports a profit margin of 3.6%.
SBUX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $110.54B |
| P/E Ratio | 80.74 |
| EPS | $1.63 |
| P/S Ratio | 2.93 |
| EV/EBITDA | 28.94 |
| Dividend Yield | 2.51% |
| Profit Margin | 3.6% |
SBUX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $26.51B | $3.60B |
| FY20 | $23.52B | $928.30M |
| FY21 | $29.06B | $4.20B |
| FY22 | $32.25B | $3.28B |
| FY23 | $35.98B | $4.12B |
| FY24 | $36.18B | $3.76B |
| FY25 | $37.18B | $1.86B |
Starbucks Corp (SBUX) Valuation
Based on GoodMoat's DCF model, Starbucks Corp has a fair value estimate of $67.14. At the current price of $97.21, the stock appears 44.8% overvalued relative to our intrinsic value estimate.
SBUX Quality Indicators
Starbucks Corp maintains a profit margin of 3.6% and an operating margin of 7.2%. The current ratio is 0.72.
About Starbucks Corp
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 40,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup.
SBUX Free Cash Flow
Starbucks Corp generated $2.44B in trailing twelve-month free cash flow, representing an FCF yield of 2.21%. This moderate FCF yield indicates reasonable cash generation.
SBUX Shares Outstanding
Starbucks Corp has 1.14 billion shares outstanding at a share price of $97.21, giving it a market capitalization of $110.54B.
SBUX Recent Insider Trades
Recent insider transactions at Starbucks Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| BREWER BRADY (ceo, International) | SELL | 588 | $58800.00 |
| KELLY SARA (evp, chief partner officer) | SELL | 2,500 | $242800.00 |
| BREWER BRADY (ceo, International) | SELL | 1,641 | $159373.92 |