Starbucks Corporation ($SBUX) Possible Buy to $79 Confident Investor Rating: Good
| Company name | Starbucks Corporation |
| Stock ticker | SBUX |
| Live stock price | [stckqut]SBUX[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $83.14 |
| Target stock price (averages with growth) | $126.05 |
| Target stock price (averages with no growth) | $100.66 |
| Target stock price (manual assumptions) | $82.97 |
The following company description is from Google Finance: http://www.google.com/finance?q=sbux
Starbucks Corporation is the roaster, marketer and retailer of specialty coffee. The Company purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. It also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts. It operates through four segment: Americas, which includes the United States, Canada, and Latin America; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP), and Channel Development. In addition to its Starbucks Coffee brand, it also sells goods and services under the brands, including Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos. Its Americas, EMEA, and CAP segments include both Company-operated and licensed stores. The Americas and EMEA segments include certain foodservice accounts, primarily in Canada and the United Kingdom.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Starbucks Corporation.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Starbucks Corporation calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $53.74
- Growth: 0.2
- Current EPS (TTM): $1.79
- P/E: 30
- Future EPS Calc: $4.45
- Future Stock Price Calc: $133.62
- Target stock price: $82.96
[/s2If]
I hope that this makes you a Confident Investor.
Boston Beer Co Inc ($SAM) Cautious Buy or Hold to $159 Confident Investor Rating: Fair
| Company name | Boston Beer Co Inc |
| Stock ticker | SAM |
| Live stock price | [stckqut]SAM[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Fair |
| EPS growth | Fair |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $121.26 |
| Target stock price (averages with growth) | $128.94 |
| Target stock price (averages with no growth) | $79.57 |
| Target stock price (manual assumptions) | $166.25 |
The following company description is from Google Finance: http://www.google.com/finance?q=sam
The Boston Beer Company, Inc. (Boston Beer) is a craft brewer in the United States. The Company is engaged in the business of producing and selling alcohol beverages primarily in the domestic market and in international markets. The Company operates through two segments: Boston Beer Company segment and A&S Brewing Collaborative segment. The Boston Beer Company operating segment comprises of the Company’s Samuel Adams, Twisted Tea and Angry Orchard brands. The A&S Brewing Collaborative operating segment comprises of The Traveler Beer Company, Coney Island Brewing Company, Angel City Brewing Company and Concrete Beach Brewing Company. It sells over 60 beers under the Samuel Adams and the Sam Adams brand names, over 10 flavored malt beverages under the Twisted Tea brand name, over 10 hard cider beverages under the Angry Orchard brand name and approximately 40 beers under over four of the brand names of its subsidiary, A&S Brewing Collaborative LLC, under its trade name Alchemy & Science.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Boston Beer Co Inc as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Boston Beer Co Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $162.15
- Growth: 0.1
- Current EPS (TTM): $6.65
- P/E: 25
- Future EPS Calc: $10.7
- Future Stock Price Calc: $267.74
- Target stock price: $166.25
[/s2If]
I hope that this makes you a Confident Investor.
Royal Gold, Inc (USA) – $RGLD – Confident Investor Rating: Poor
| Company name | Royal Gold, Inc (USA) |
| Stock ticker | RGLD |
| Live stock price | [stckqut]RGLD[/stckqut] |
| Confident Investor Rating | Poor |
The following company description is from Google Finance: http://www.google.com/finance?q=rgld
Royal Gold, Inc., together with its subsidiaries, is engaged in acquiring and managing precious metal streams, royalties and similar interests. The Company operates through two segments: Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests. Its assets are located in Canada, Chile, Dominican Republic, Mexico, the United States, Africa, Australia and Other. As of June 30, 2016, the Company owned stream interests on four producing properties and three development-stage properties. It has investments in stream interests relating to Pueblo Viejo, Andacollo, Wassa and Prestea, and Rainy River. As of June 30, 2016, the Company owned royalty interests on 34 producing properties, 21 development-stage properties and 131 exploration-stage properties, of which it considered 50 to be evaluation-stage projects.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Royal Gold, Inc (USA). It is not possible to confidently invest in a company that is not currently profitable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.