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Starbucks Corporation (SBUX)

POSITIVE
Consumer CyclicalRestaurantsUnited States

Price

$105.25

Market Cap

$119.98B

Fundamental

68

Technical

75

Composite

70

AI Analysis

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Overview

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. 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, complementary food, packaged 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.

Balance Sheet & Liquidity

Revenue

$9.32B

Net Income

$1.04B

Free Cash Flow

$3.87B

Total Equity

$-7.67B

Total Liabilities

$35.96B

Current Ratio

0.76

Interest Coverage

7.28

Debt/EBITDA

36.68

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Overvalued

Fair Value

$83.35

Current Price

$105.25

Margin of Safety

-26.3%

Fair Value Range

$56.23 - $110.47

Estimation Methods

Analyst Target:$109.94
DCF:$97.16
PE-based:$61.22
Graham Growth:$60.74
EPV:$24.64
Analyst Consensus:Buy (23B / 19H / 5S)
Last Earnings Surprise:+26.06%

Valuation Metrics

P/E Ratio

114.40

ROE

-13.6%

P/B Ratio

-

P/FCF

31.04

Gross Margin

-

ROIC

4.2%

Value Creation (Economic Moat)

ROIC

4.2%

WACC

7.6%

ROIC − WACC

-3.4 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (16)

  • EPS shows upward trend
  • EPS CAGR 17.06%
  • Price CAGR 6.61%
  • Operating Margin 10.5%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 115.7%
  • Revenue Growth 5Y 9.6%
  • Earnings Surprise avg 6.1%
  • Earnings Quality (OCF/NI) 1.57
  • Share Dilution 0.1%
  • Net Margin Trend 11.2% vs 5.4%
  • Piotroski F-Score 7/9

Failed (7)

  • ROIC 4.2%
  • P/FCF 31.04
  • CapEx intensity
  • Debt/EBITDA
  • DCF valuation (Overvalued)
  • Analyst Consensus 49% Buy
  • PEG Ratio 3.85

Unavailable (5)

  • Gross Margin NaN%
  • P/B Ratio NaN
  • Dividend Payout NaN%
  • Debt/Equity ratio
  • Price below Graham Number

Price Chart

Technical Indicators

RSI (14)

54.39

SMA 50

$102.34

SMA 200

$94.89

MACD

-0.13

Volatility

2.2%

Momentum (12m)

18.0%

RSI 54.4, SMA trend bullish, momentum 18.0%.

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.57

High quality: earnings backed by cash

Share Dilution

10.0%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. Brian R. NiccolChairman & CEO51
Ms. Catherine R. Smith CPAExecutive VP & CFO61
Mr. Mike GramsEVP & COO54
Mr. Bao Giang Val BauduinPrincipal Accounting Officer and Senior VP of Corporate Finance & Development49
Mr. Brady BrewerChief Executive Officer of Starbucks International52
Ms. Sara KellyExecutive VP & Chief Partner Officer45
Mr. Anand VaradarajanEVP & CTO-
Ms. Pilar RamosExecutive VP & Chief Legal Officer52
Mr. Andy AdamsSenior Vice President of Global Growth & Concepts-
Ms. Janet LandersSenior Vice President of Business Technology-

Audit Risk

8

Board Risk

5

Compensation Risk

9

Shareholder Rights Risk

2

Latest News

Recent headlines for SBUX, sourced from Markets Gazette.

  • 6/19/2026NEGATIVE
    Starbucks Cuts UK, Hong Kong Office Jobs in Restructuring Effort

    Starbucks has initiated layoffs affecting corporate employees in its London and Hong Kong offices as part of a broader restructuring strategy. This move signals a shift towards granting more operational control to third-party licensees for its international store management outside of North America. While the direct impact on store-level operations is not immediately clear, such corporate workforce reductions can be interpreted as a cost-saving measure or a response to evolving business strategies, potentially raising concerns among investors about the company's near-term operational stability and international growth trajectory.

  • 5/15/2026NEUTRAL
    Starbucks Stock Holds Steady As Investors Digest Extensive Corporate Restructuring Plan

    Starbucks Corporation's stock is trading flat as investors analyze a recently filed Form 8-K detailing a significant corporate restructuring plan. While the specifics of the restructuring are still being absorbed by the market, the lack of immediate price movement suggests a neutral short-term reaction. Investors are likely weighing the potential long-term benefits of the restructuring against any immediate costs or uncertainties. Further analysis of the plan's details will be crucial for determining the future impact on the company's performance and stock valuation.

  • 4/29/2026POSITIVE
    Starbucks is winning customers back after investing $500 million in workers and stores

    Starbucks is reportedly regaining customer loyalty following a substantial $500 million investment in its workforce and store infrastructure. The company's strategy focused on increasing barista staffing, optimizing work schedules, and enhancing employee benefits appears to be yielding positive results. This initiative aims to improve customer experience and operational efficiency, potentially leading to increased sales and market share. Investors may view this as a strategic move that strengthens Starbucks' competitive position and long-term growth prospects.

  • 4/29/2026NEUTRAL
    Starbucks CEO on Earnings, Sales Growth, Speedy Service

    Starbucks CEO Brian Niccol discussed the company's recent earnings report, focusing on enhancements to the mobile order experience and the introduction of new menu items. The conversation also touched upon efforts to improve drink consistency. While these initiatives aim to boost customer satisfaction and potentially sales, the news itself is an overview of ongoing strategies rather than a definitive performance indicator. Investors will await concrete sales figures and profit margins to assess the impact of these operational improvements.

  • 4/28/2026POSITIVE
    Starbucks is seeing a resurgence, thanks to younger and lower-income customers

    Starbucks Corporation has announced a significant hike in its outlook, driven by a resurgence in sales that have surpassed Wall Street expectations. The coffee giant is experiencing increased patronage from younger demographics and lower-income customers, a trend that has boosted same-store sales. This strategic shift in customer base is expected to translate into higher revenue and profitability. For investors, this indicates a successful adaptation to evolving consumer preferences and a potential for sustained growth, possibly leading to upward revisions in earnings forecasts and stock price targets.

  • 4/3/2026NEUTRAL
    Starbucks just made two noteworthy moves to boost its turnaround — but they didn’t help the coffee chain’s stock

    Starbucks announced two strategic initiatives: a new employee bonus and tipping program, and a significant deal transferring a substantial portion of its China store operations to an investment firm. While these moves aim to bolster the company's turnaround efforts, the market's reaction was muted, with the stock failing to gain traction. The China deal, in particular, signals a potential shift in operational strategy for a key international market. Investors will be closely watching the impact of these changes on future earnings and market share, especially in China.

  • 4/3/2026NEGATIVE
    Starbucks made two big moves to boost its turnaround — but they didn’t help the coffee chain’s stock

    Starbucks announced two significant strategic initiatives: a new employee bonus and tipping program, and a deal to transfer a substantial portion of its China store operations to an investment firm. While aimed at bolstering its turnaround strategy, these moves have not translated into positive market sentiment for the coffee chain's stock. The market appears to be reacting cautiously, suggesting that investors are awaiting further clarity on the long-term financial implications and operational impact of these significant shifts, particularly the divestment in a key international market.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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