Starbucks Corporation

SBUX

112.55 (0.00%) 0.00

127.85(B)

Consumer Discretionary

Hotels Restaurants and Leisure

Starbucks Corporation together with its subsidiaries operates as a roaster marketer and retailer of coffee worldwide. The company operates through three segments: North America International and Channel Development. Its stores offer coffee tea and other beverages roasted whole beans and ground coffees single serve products and ready-to-drink beverages; and various food products such as pastries breakfast sandwiches and lunch items. The company also licenses its trademarks through licensed stores and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee Teavana Seattle’s Best Coffee Ethos and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle Washington.

Holdings:

Cost basis:

Starbucks Corporation (SBUX) price target and intrinsic value estimate

SBUX's fair price estimate is $81.7

This valuation is based on a fair P/E of 19.7 and EPS estimates of $4.14

The median analyst price target for SBUX is $110.5.

Analyst price targets range from $76.0 to $125.0

Is SBUX overvalued or undervalued?

SBUX is currently trading at $112.55

SBUX is overvalued by 38% using the pevaluation method.

SBUX is overvalued by 2% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Current price

$112.55

Overvalued

Low

$61.3

Median

$81.7

High

$102.2

Fair P/E

Margin of safety

Analyst valuation

Current price

$112.55

Fairly valued

Low

$76

Median

$111

High

$125

Strong Buy7

Buy10

Hold14

Sell3

Strong Sell1

Discounted cash-flow

N/A
Negative FCF or FCF estimates

TTM FCFFCF est.Growth FCFTerminal FCF

Discount
rate10%

Terminal
rate5%

Growth p.
length5y

Growth p.
rate10%

Economic moat: Wide

Overview

Market data

Market cap:$127.85(B)

Enterprise value:$149.80(B)

Total Equity:$-7.46(B)

Shares outstanding:1.14(B)

Div. yield:2.10%

P/S:3.53

P/E:36.31

P/FCF:43.96

P/B:N/A

EPS:$3.1

FCF per share:$2.6

Dividend per share:$2.4

Income (TTM)

Revenue$36.15(B)

Gross profit$9.44(B)

EBITDA$6.42(B)

Net income$3.52(B)

Gross margin26.1%

Net margin9.7%

Balance sheet

Total assets$31.89(B)

Total liabilities$39.36(B)

Cash & Short-term inv.$3.96(B)

Long-term debt$14.34(B)

Debt issued$1.77(B)

Debt repaid$-1.20(B)

Cash flow (TTM)

FCF$2.91(B)

CapEx$-2.87(B)

Dividends paid$-2.63(B)

Stock issued$92.80(M)

Stock repurchased$-82.90(M)

Stock-based comp.$314.10(M)

Future Growth

Revenue

CAGR: 9.0%

FY+1$37.42(B)

FY+2$40.01(B)

FY+3$43.75(B)

FY+4$47.86(B)

FY+5$52.76(B)

Net Income

CAGR: 19.1%

FY+1$3.34(B)

FY+2$4.10(B)

FY+3$4.87(B)

FY+4$5.95(B)

FY+5$6.73(B)

EPS

CAGR: 21.1%

FY+1$2.96

FY+2$3.66

FY+3$4.35

FY+4$5.56

FY+5$6.37

FCF per share

CAGR: 14.3%

FY+1$5.02

FY+2$5.68

FY+3$6.56

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Historical Financials

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YearlyQuarterly

Income

RevenueNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AOperating IncomeInterest ExpenseInterest IncomePre-tax incomeIncome tax

Cash flow

FCFCFONet IncomeD&AStock-based Comp.CFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures

Balance sheet

Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity

Shares outstanding

Shares (Basic)Shares (Diluted)

Per share data

EPS (Basic)EPS (Diluted)FCF/ShareDividend/ShareBook value/Share

Ratios

P/EP/FCFP/BP/SEV/EarningsEV/FCFDebt/EquityPayout ratio

Margins

Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin

Returns

ROICROAROCEROE

Market Cap.