Is Starbucks Stock a Good Investment?
Starbucks Investment Advice | SBUX |
- Examine Starbucks' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Starbucks' leadership team and their track record. Good management can help Starbucks navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Starbucks' business and its evolving consumer preferences.
- Compare Starbucks' performance and market position to its competitors. Analyze how Starbucks is positioned in terms of product offerings, innovation, and market share.
- Check if Starbucks pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Starbucks' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Starbucks stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Starbucks is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Starbucks Stock
Researching Starbucks' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.04. Starbucks last dividend was issued on the 15th of November 2024. The entity had 2:1 split on the 9th of April 2015.
To determine if Starbucks is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Starbucks' research are outlined below:
| Starbucks has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Starbucks currently holds 25.8 B in liabilities with Debt to Equity (D/E) ratio of 807.4, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Starbucks has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Starbucks' use of debt, we should always consider it together with its cash and equity. | |
| Over 81.0% of Starbucks shares are owned by institutional investors | |
| Latest headline from deseret.com: Should Utah grocery stores charge restaurant taxes on some food purchases Why a state senator says yes |
Starbucks Quarterly Good Will |
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Starbucks uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Starbucks. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Starbucks' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 30th of January 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of November 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Starbucks' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Starbucks' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-04-29 | 2009-03-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2008-07-30 | 2008-06-30 | 0.09 | 0.08 | -0.01 | 11 | ||
2008-04-30 | 2008-03-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2007-11-15 | 2007-09-30 | 0.1 | 0.11 | 0.01 | 10 | ||
2006-11-16 | 2006-09-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2006-05-03 | 2006-03-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2006-02-01 | 2005-12-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2005-11-17 | 2005-09-30 | 0.07 | 0.08 | 0.01 | 14 |
Know Starbucks' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Starbucks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Starbucks backward and forwards among themselves. Starbucks' institutional investor refers to the entity that pools money to purchase Starbucks' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2024-09-30 | 13 M | Nuveen Asset Management, Llc | 2024-06-30 | 12.4 M | Fisher Asset Management, Llc | 2024-09-30 | 11.8 M | Jpmorgan Chase & Co | 2024-06-30 | 10.4 M | Loomis, Sayles & Company Lp | 2024-06-30 | 10.3 M | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 9.9 M | Charles Schwab Investment Management Inc | 2024-09-30 | 9.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 9.4 M | Legal & General Group Plc | 2024-06-30 | 8.7 M | Vanguard Group Inc | 2024-09-30 | 110.3 M | Blackrock Inc | 2024-06-30 | 78.8 M |
Starbucks' market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 115.09 B.Market Cap |
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Starbucks' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.13 | 0.23 | |
| Return On Capital Employed | 0.24 | 0.21 | |
| Return On Assets | 0.12 | 0.19 | |
| Return On Equity | (0.50) | 3.86 |
Determining Starbucks' profitability involves analyzing its financial statements and using various financial metrics to determine if Starbucks is a good buy. For example, gross profit margin measures Starbucks' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Starbucks' profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Starbucks' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Starbucks. Check Starbucks' Beneish M Score to see the likelihood of Starbucks' management manipulating its earnings.
Evaluate Starbucks' management efficiency
Starbucks has return on total asset (ROA) of 0.105 % which means that it generated a profit of $0.105 on every $100 spent on assets. This is way below average. Starbucks' management efficiency ratios could be used to measure how well Starbucks manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Starbucks' Return On Tangible Assets are fairly stable compared to the past year. Return On Assets is likely to rise to 0.19 in 2024, whereas Return On Capital Employed is likely to drop 0.21 in 2024. At this time, Starbucks' Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 25.7 B in 2024, whereas Total Current Assets are likely to drop slightly above 3.4 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (6.56) | 0.85 | |
| Tangible Book Value Per Share | (9.58) | (2.46) | |
| Enterprise Value Over EBITDA | 19.86 | 10.68 | |
| Price Book Value Ratio | (14.84) | 65.71 | |
| Enterprise Value Multiple | 19.86 | 10.68 | |
| Price Fair Value | (14.84) | 65.71 | |
| Enterprise Value | 666.2 M | 632.8 M |
Starbucks benefits from a management team that prioritizes both innovation and efficiency. We analyze these priorities to gauge the stock's future performance.
Dividend Yield 0.024 | Forward Dividend Yield 0.024 | Forward Dividend Rate 2.44 | Beta 0.962 |
Basic technical analysis of Starbucks Stock
As of the 28th of November, Starbucks has the Coefficient Of Variation of 2155.65, risk adjusted performance of 0.0398, and Semi Deviation of 1.07. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Starbucks, as well as the relationship between them.Starbucks' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Starbucks insiders, such as employees or executives, is commonly permitted as long as it does not rely on Starbucks' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Starbucks insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Zhang Wei over a year ago Starbucks exotic insider transaction detected | ||
Young Scrivner Annie over a year ago Exercise or conversion by Young Scrivner Annie of 55191 shares of Starbucks subject to Rule 16b-3 |
Starbucks' Outstanding Corporate Bonds
Starbucks issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Starbucks uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Starbucks bonds can be classified according to their maturity, which is the date when Starbucks has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| STARBUCKS P 375 Corp BondUS855244AM15 | View | |
| STARBUCKS P 245 Corp BondUS855244AK58 | View | |
| STARBUCKS P 35 Corp BondUS855244AP46 | View | |
| STARBUCKS P 38 Corp BondUS855244AQ29 | View | |
| STARBUCKS P 43 Corp BondUS855244AH20 | View | |
| SBUX 3 14 FEB 32 Corp BondUS855244BC24 | View | |
| STARBUCKS PORATION Corp BondUS855244BA67 | View | |
| STARBUCKS PORATION Corp BondUS855244AT67 | View |
Understand Starbucks' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Starbucks' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0398 | |||
| Market Risk Adjusted Performance | 0.1393 | |||
| Mean Deviation | 0.9915 | |||
| Semi Deviation | 1.07 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 2155.65 | |||
| Standard Deviation | 1.34 | |||
| Variance | 1.8 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | 0.0056 | |||
| Total Risk Alpha | (0.15) | |||
| Sortino Ratio | (0.05) | |||
| Treynor Ratio | 0.1293 | |||
| Maximum Drawdown | 7.49 | |||
| Value At Risk | (2.04) | |||
| Potential Upside | 2.01 | |||
| Downside Variance | 1.32 | |||
| Semi Variance | 1.15 | |||
| Expected Short fall | (1.15) | |||
| Skewness | 0.7459 | |||
| Kurtosis | 2.56 |
| Risk Adjusted Performance | 0.0398 | |||
| Market Risk Adjusted Performance | 0.1393 | |||
| Mean Deviation | 0.9915 | |||
| Semi Deviation | 1.07 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 2155.65 | |||
| Standard Deviation | 1.34 | |||
| Variance | 1.8 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | 0.0056 | |||
| Total Risk Alpha | (0.15) | |||
| Sortino Ratio | (0.05) | |||
| Treynor Ratio | 0.1293 | |||
| Maximum Drawdown | 7.49 | |||
| Value At Risk | (2.04) | |||
| Potential Upside | 2.01 | |||
| Downside Variance | 1.32 | |||
| Semi Variance | 1.15 | |||
| Expected Short fall | (1.15) | |||
| Skewness | 0.7459 | |||
| Kurtosis | 2.56 |
Consider Starbucks' intraday indicators
Starbucks intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Starbucks stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Starbucks time-series forecasting models is one of many Starbucks' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Starbucks' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Starbucks Stock media impact
Far too much social signal, news, headlines, and media speculation about Starbucks that are available to investors today. That information is available publicly through Starbucks media outlets and privately through word of mouth or via Starbucks internal channels. However, regardless of the origin, that massive amount of Starbucks data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Starbucks news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Starbucks relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Starbucks' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Starbucks alpha.
Starbucks Historical Investor Sentiment
Investor biases related to Starbucks' public news can be used to forecast risks associated with an investment in Starbucks. The trend in average sentiment can be used to explain how an investor holding Starbucks can time the market purely based on public headlines and social activities around Starbucks. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Starbucks' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Starbucks and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Starbucks news discussions. The higher the estimate score, the more favorable the investor's outlook on Starbucks.
Starbucks Corporate Management
| Ashish Mishra | Deputy VP | Profile | |
| Bradley Lerman | Executive Counsel | Profile | |
| Aranthan II | Executive Affairs | Profile | |
| Michael Conway | Group Development | Profile | |
| Andy Adams | Senior Development | Profile | |
| Brady Brewer | Chief International | Profile |
Additional Tools for Starbucks Stock Analysis
When running Starbucks' price analysis, check to measure Starbucks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Starbucks is operating at the current time. Most of Starbucks' value examination focuses on studying past and present price action to predict the probability of Starbucks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Starbucks' price. Additionally, you may evaluate how the addition of Starbucks to your portfolios can decrease your overall portfolio volatility.