Loading stock…

Starbucks Corporation (SBUX) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Starbucks Corporation

SBUXMarket cap $107BPrice $93.6

Country🇺🇸United States

SectorConsumer

IndustryHotels & Leisure

Operates 38,000 coffee shops across 80 countries, serving 100 million customers weekly. Makes more money selling coffee than many countries' entire GDP, with each store averaging $1.2 million in annual revenue.

In Bastion Portfolios?

52W Return+12%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+5%5

Revenue Forecast

Rev CAGR (1y)+2%3

Rev CAGR (3y)+3%3

Rev CAGR (5y)+4%4

Earnings Forecast

EPS Growth Y+1+61%10

EPS Growth Y+2+19%8

EPS Growth Y+3+19%8

Quality

Margins

EBIT Margin10%4

Net Income Margin5%4

Free Cash Flow Margin9%6

Debt

Net Debt/EBITDA2.14

Efficiency

ROEna–

ROA6%7

Earnings Stability44

GEAR+WEAK16

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)332

P/E Ratio (Forward 3y)252

P/BVna–

EV Multiples

EV/EBITDA Fwd212

EV/EBIT Fwd292

Yield

Free Cash Flow Yield3.4%5

Dividend Yield2.7%6

Momentum

Short term

1 month return-8%3

3 month return-9%3

YTD return+13%7

Mid term

Price vs 52wHigh85%7

1 year return+20%7

Long term

3 year return+9%3

5 year return-5%3

Risk Shield

Price Risk

Beta1.14

Volatility27%8

Free Cash Flow

Free Cash Flow Margin9%6

Free Cash Flow Yield3.4%5

Quality

ROCE19%8

Earnings Stability44

Net Debt/EBITDA2.14

02Growth

Is it actually growing, and how fast?

SBUXStarbucks

Revenue FY25$37.2B

GROWTH RATING↗

WEAK34 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+61%10

EPS growth, FY27E+19%8

EPS growth, FY28E+19%8

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 19%/yr vs revenue 3%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 34% of companies worldwide.

Revenue grew 5%/yr over the last 3 years and is set to keep growing around 3%/yr.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK30 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-8%3

3-month return-9%3

YTD return+13%7

MID & LONG-TERM▾SCORE

% of 52-week high85%7

1-year return+20%7

3-year return+9%3

5-year return-5%3

MOMENTUM ASSESSMENT

STRENGTHS

It's up 20% over the past year, but 15% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+13%).

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+8.7% over three years and -5.3% over five), behind 70% of the market.

The stock is underperforming over the past month (-8%) and over three months (-9%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Starbucks. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community

Loading charts…

02Growth

Is it actually growing, and how fast?

SBUXStarbucks

Revenue FY25$37.2B

GROWTH RATING↗

WEAK34 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+61%10

EPS growth, FY27E+19%8

EPS growth, FY28E+19%8

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 19%/yr vs revenue 3%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 34% of companies worldwide.

Revenue grew 5%/yr over the last 3 years and is set to keep growing around 3%/yr.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK30 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-8%3

3-month return-9%3

YTD return+13%7

MID & LONG-TERM▾SCORE

% of 52-week high85%7

1-year return+20%7

3-year return+9%3

5-year return-5%3

MOMENTUM ASSESSMENT

STRENGTHS

It's up 20% over the past year, but 15% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+13%).

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+8.7% over three years and -5.3% over five), behind 70% of the market.

The stock is underperforming over the past month (-8%) and over three months (-9%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Starbucks. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community