Starbucks Corporation [SBUX] took an upward turn with a change of 0.51%, trading at the price of $83.35 during the trading session on Thursday. The price movement in correlation with percentage of the mentioned increase can allow a valuable insight to investors. During the last trading session 7.01 million shares changed hands being bought and sold, while Starbucks Corporation shares have an average trading volume of 7.77M shares for that time period. SBUX monthly volatility recorded 1.68%, in the meanwhile having share price volatility for the week set at 1.63%. PS value for SBUX stocks is 3.90 with PB recorded at .
Starbucks Corporation [NASDAQ:SBUX]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Starbucks Corporation [SBUX], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in September. On average, stock market experts give SBUX an Outperform rating. Its stock price has been found in the range of 47.37 to 83.67. This is compared to its latest closing price of $82.93.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Starbucks Corporation [SBUX] is sitting at 2.45. This is compared to 1 month ago, when its average rating was 2.45.
For the quarter ending in Mar-19 Starbucks Corporation [SBUX] generated $6.31 billion in sales. That’s 0.18% lower than the average estimate of $6.32 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Thu 25 Jul (In 41 Days).
Fundamental Analysis of Starbucks Corporation [SBUX]
Now let’s turn to look at profitability: with a current Operating Margin for Starbucks Corporation [SBUX] sitting at +15.61 and its Gross Margin at +22.71, this company’s Net Margin is now 11.90%. These measurements indicate that Starbucks Corporation [SBUX] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 38.36, and its Return on Invested Capital has reached 43.90%. Its Return on Equity is 136.51, and its Return on Assets is 23.46. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates SBUX financial performance.
Turning to investigate this organization’s capital structure, Starbucks Corporation [SBUX] has generated a Total Debt to Total Equity ratio of 812.15. Similarly, its Total Debt to Total Capital is 89.04, while its Total Debt to Total Assets stands at 39.32. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 781.86, and its Long-Term Debt to Total Capital is 85.72. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 19.45 and its Total Debt to EBITDA Value is 1.84. The Enterprise Value to Sales for this firm is now 3.93, and its Total Debt to Enterprise Value stands at 0.12. Starbucks Corporation [SBUX] has a Price to Book Ratio of 63.63, a Price to Cash Flow Ratio of 6.64 and P/E Ratio of 36.08. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Starbucks Corporation [SBUX] earns $84,948 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 19.63 and its Total Asset Turnover is 1.28. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.95 and its Current Ratio is 2.20. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Starbucks Corporation [SBUX] has 1.20B shares outstanding, amounting to a total market cap of $99.63B. Its stock price has been found in the range of 47.37 to 83.67. At its current price, it has moved down by -0.38% from its 52-week high, and it has moved up 75.96% from its 52-week low.
This stock’s Beta value is currently 0.51, which indicates that it is 1.63% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 73.23. This RSI suggests that Starbucks Corporation is currently Overbought.
Conclusion: Is Starbucks Corporation [SBUX] a Reliable Buy?
Shares of Starbucks Corporation [SBUX], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.