Starbucks Corp. (SBUX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chipotle Mexican Grill, Inc.

Texas Roadhouse, Inc.

Darden Restaurants, Inc.

Aramark

Yum China Holdings, Inc.

The Wendy's Co.

McDonald's Corp.

Yum! Brands, Inc.

Domino's Pizza, Inc.

Starbucks Corp.

Wingstop, Inc.

Why is Starbucks Corp. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 14.80% of over the last 5 years

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 4,901.3 MM
PRE-TAX PROFIT(Q) At USD 849.7 MM has Fallen at -39.51%
NET PROFIT(Q) At USD 579.31 MM has Fallen at -45.09%

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -15.64%, its profits have fallen by -22.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.64% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Starbucks Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Starbucks Corp.

-16.31%

0.16

34.02%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.79%

EBIT Growth (5y)

14.80%

EBIT to Interest (avg)

7.77

Debt to EBITDA (avg)

2.44

Net Debt to Equity (avg)

-1.84

Sales to Capital Employed (avg)

4.02

Tax Ratio

24.07%

Dividend Payout Ratio

68.95%

Pledged Shares

Institutional Holding

88.90%

ROCE (avg)

82.75%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-13.36

EV to EBIT

26.89

EV to EBITDA

19.36

EV to Capital Employed

18.07

EV to Sales

3.19

PEG Ratio

Dividend Yield

2.70%

ROCE (Latest)

67.20%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 30.7

DIVIDEND PAYOUT RATIO(Y)

Highest at 124.54%

DEBT-EQUITY RATIO (HY)

Lowest at -304.19 %

NET SALES(Q)

Highest at USD 9,452 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 4,901.3 MM

PRE-TAX PROFIT(Q)

At USD 849.7 MM has Fallen at -39.51%

NET PROFIT(Q)

At USD 579.31 MM has Fallen at -45.09%

RAW MATERIAL COST(Y)

Grown by 27.23% (YoY

INTEREST(Q)

Highest at USD 166.1 MM

Here's what is working for Starbucks Corp.

Dividend per share

Highest at USD 30.7 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 9,452 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at -304.19 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 124.54%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 448 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Starbucks Corp.

Pre-Tax Profit

At USD 849.7 MM has Fallen at -39.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 579.31 MM has Fallen at -45.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 4,901.3 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 166.1 MM

in the last five periods and Increased by 9.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 27.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales