| Company name | Starbucks Corporation |
| Stock ticker | SBUX |
| Live stock price | [stckqut]SBUX[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Fair |
| EPS growth | Poor |
| P/E growth | Good |
| EBITDA growth | Poor |
| Price growth | Good |
| R&D growth | Poor |
| Income growth | Good |
| Assets growth | Good |
| Return on Assets growth | Good |
| Income / Rev growth | Good |
| TWCA Plus | Good |
| Standard TWCA | Good |
| Weighted ann. stock price increase | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $117.87 |
| Target stock price (averages with growth) | $5844.91 |
| Target stock price (averages with no growth) | $103.61 |
| Target stock price (manual assumptions) | $117.22 |
The following company description is from Reuters: https://finance.yahoo.com/quote/sbux/profile?p=sbux
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in three segments: Americas; International; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, and iced tea; 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. It offers its products under the Starbucks, Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brand names. As of October 30, 2019, the company operated approximately 31,000 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Starbucks Corporation as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. 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 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: $76.31
- Growth: 0.2
- Current EPS (TTM): $2.81
- P/E: 27
- Future EPS Calc: $6.99
- Future Stock Price Calc: $188.78
- Target stock price: $117.22
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I hope that this makes you a Confident Investor.