(SBUX) Starbucks - Overview
Sector: Consumer Cyclical | Industry: Restaurants | Exchange: NASDAQ (USA) | Market Cap: 118.677m USD | Total Return: 26% in 12m
Avg Turnover: 696M
EPS Trend: -90.4%
Qual. Beats: 1
Rev. Trend: 82.7%
Qual. Beats: 1
Warnings
P/E ratio 79.5
Altman Z'' -0.59 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Starbucks Corporation is a global roaster and retailer of specialty coffee, operating through company-owned and licensed stores across North America and international markets. The company’s portfolio includes diverse beverage and food offerings under brands such as Starbucks Reserve, Teavana, and Seattles Best Coffee.
The business model utilizes a multi-channel approach, leveraging retail locations for direct consumer engagement while using the Channel Development segment to distribute packaged goods through grocery and foodservice providers. In the broader restaurant sector, coffee-focused chains often maintain higher average margins compared to full-service dining due to lower labor intensity and high-frequency purchase patterns.
Analyzing historical valuation trends on ValueRay can provide deeper context for these market dynamics. Founded in 1971 and headquartered in Seattle, Starbucks maintains a significant global footprint as a dominant player in the GICS Restaurants sub-industry.
- Comparable store sales growth in North America stabilizes revenue and margins
- China market recovery and expansion drive long-term international volume growth
- Rising labor costs and unionization efforts pressure domestic operating margins
- Digital rewards program and mobile ordering increase customer frequency and retention
- Commodity price volatility in green coffee beans impacts core cost of goods sold
| Net Income: 1.50b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.18 > 1.0 |
| NWC/Revenue: -2.31% < 20% (prev -10.22%; Δ 7.91% < -1%) |
| CFO/TA 0.14 > 3% & CFO 4.35b > Net Income 1.50b |
| Net Debt (32.0b) to EBITDA (5.37b): 5.96 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.14b) vs 12m ago 0.28% < -2% |
| Gross Margin: 20.36% > 18% (prev 0.25%; Δ 2.01k% > 0.5%) |
| Asset Turnover: 123.7% > 50% (prev 114.9%; Δ 8.80% > 0%) |
| Interest Coverage Ratio: 6.26 > 6 (EBITDA TTM 5.37b / Interest Expense TTM 590.1m) |
| A: -0.03 (Total Current Assets 10.6b - Total Current Liabilities 11.4b) / Total Assets 30.6b |
| B: -0.29 (Retained Earnings -8.88b / Total Assets 30.6b) |
| C: 0.12 (EBIT TTM 3.69b / Avg Total Assets 31.1b) |
| D: -0.24 (Book Value of Equity -9.30b / Total Liabilities 39.0b) |
| Altman-Z'' = -0.59 = B |
| DSRI: 1.05 (Receivables 1.29b/1.15b, Revenue 38.5b/36.3b) |
| GMI: 1.23 (GM 20.36% / 24.97%) |
| AQI: 0.72 (AQ_t 0.15 / AQ_t-1 0.21) |
| SGI: 1.06 (Revenue 38.5b / 36.3b) |
| TATA: -0.09 (NI 1.50b - CFO 4.35b) / TA 30.6b) |
| Beneish M = -3.00 (Cap -4..+1) = A |
As of May 23, 2026, the stock is trading at USD 104.13 with a total of 8,338,336 shares traded.
Over the past week, the price has changed by -3.47%,
over one month by +4.21%,
over three months by +9.43% and
over the past year by +26.03%.
Starbucks has received a consensus analysts rating of 3.66. Therefore, it is recommended to hold SBUX.
- StrongBuy: 13
- Buy: 5
- Hold: 16
- Sell: 2
- StrongSell: 2
| Analysts Target Price | 106.6 | 2.4% |
P/E Forward = 45.8716
P/S = 3.0848
P/B = 68.4639
P/EG = 1.7921
Revenue TTM = 38.5b USD
EBIT TTM = 3.69b USD
EBITDA TTM = 5.37b USD
Long Term Debt = 13.1b USD (from longTermDebt, last quarter)
Short Term Debt = 3.30b USD (from shortTermDebt, last quarter)
Debt = 33.7b USD (from shortLongTermDebtTotal, last quarter) + Leases 9.31b
Net Debt = 32.0b USD (calculated: Debt 33.7b - CCE 1.70b)
Enterprise Value = 151b USD (119b + Debt 33.7b - CCE 1.70b)
Interest Coverage Ratio = 6.26 (Ebit TTM 3.69b / Interest Expense TTM 590.1m)
EV/FCF = 55.28x (Enterprise Value 151b / FCF TTM 2.73b)
FCF Yield = 1.81% (FCF TTM 2.73b / Enterprise Value 151b)
FCF Margin = 7.09% (FCF TTM 2.73b / Revenue TTM 38.5b)
Net Margin = 3.89% (Net Income TTM 1.50b / Revenue TTM 38.5b)
Gross Margin = 20.36% ((Revenue TTM 38.5b - Cost of Revenue TTM 30.6b) / Revenue TTM)
Gross Margin QoQ = 20.08% (prev 15.63%)
Tobins Q-Ratio = 4.93 (Enterprise Value 151b / Total Assets 30.6b)
Interest Expense / Debt = 1.75% (Interest Expense 590.1m / Debt 33.7b)
Taxrate = 29.84% (217.3m / 728.1m)
NOPAT = 2.59b (EBIT 3.69b * (1 - 29.84%))
Current Ratio = 0.92 (Total Current Assets 10.6b / Total Current Liabilities 11.4b)
Debt / Equity = -3.98 (negative equity) (Debt 33.7b / totalStockholderEquity, last quarter -8.47b)
Debt / EBITDA = 5.96 (Net Debt 32.0b / EBITDA 5.37b)
Debt / FCF = 11.74 (Net Debt 32.0b / FCF TTM 2.73b)
Total Stockholder Equity = -8.16b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.81% (Net Income 1.50b / Total Assets 30.6b)
RoE = 207.2% (Net Income TTM 1.50b / Total Stockholder Equity 721.9m)
RoCE = 26.74% (EBIT 3.69b / Capital Employed (Equity 721.9m + L.T.Debt 13.1b))
RoIC = 12.51% (NOPAT 2.59b / Invested Capital 20.7b)
WACC = 7.93% (E(119b)/V(152b) * Re(9.83%) + D(33.7b)/V(152b) * Rd(1.75%) * (1-Tc(0.30)))
Discount Rate = 9.83% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 68.89 | Cagr: 0.10%
[DCF] Terminal Value 75.25% ; FCFF base≈2.74b ; Y1≈2.72b ; Y5≈2.81b
[DCF] Fair Price = 10.42 (EV 43.9b - Net Debt 32.0b = Equity 11.9b / Shares 1.14b; r=8.35% [WACC [floored]]; 5y FCF grow -1.42% → 2.50% )
EPS Correlation: -90.39 | EPS CAGR: -21.19% | SUE: 1.67 | # QB: 1
Revenue Correlation: 82.69 | Revenue CAGR: 2.20% | SUE: 1.08 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.65 | Chg30d=+1.31% | Revisions=+9% | Analysts=29
EPS current Year (2026-09-30): EPS=2.39 | Chg30d=+4.52% | Revisions=+71% | GrowthEPS=+12.2% | GrowthRev=+1.5%
EPS next Year (2027-09-30): EPS=3.03 | Chg30d=+3.10% | Revisions=+57% | GrowthEPS=+26.6% | GrowthRev=+2.2%
[Analyst] Revisions Ratio: +71%