SBUX investors were likely spooked today by Wall Street Journal's report: "Starbucks interim CEO Howard Schultz agreed to testify before the committee, the latest development in the conflict between the company and baristas seeking to unionize." For more coverage, read the full article here. On the back of this news, Starbucks sank -1.58% to a price of $103.33. Are the markets overreacting?
Here's an overview of Starbucks's recent cash flows and operating margins:
| Date Reported | Cash Flow from Operations (k) | Capital Expenditures (k) | Free Cash Flow (k) | YoY Growth |
|---|---|---|---|---|
| 2022-09-30 | $4,397,300 | $1,841,300 | $2,556,000 | -43.44% |
| 2021-09-30 | $5,989,100 | $1,470,000 | $4,519,100 | 3857.18% |
| 2020-09-30 | $1,597,800 | $1,483,600 | $114,200 | -96.48% |
| 2019-09-30 | $5,047,000 | $1,806,600 | $3,240,400 | -67.47% |
| 2018-09-30 | $11,937,800 | $1,976,400 | $9,961,400 | n/a |
| Date Reported | Revenue (k) | Cost of Revenue (k) | Gross Margin | YoY Growth |
|---|---|---|---|---|
| 2022-09-30 | $32,250,300 | $23,879,200 | 25.96% | -58.6% |
| 2021-09-30 | $29,060,600 | $10,839,100 | 62.7% | 7.34% |
| 2020-09-30 | $23,518,000 | $9,780,300 | 58.41% | 7.53% |
| 2019-09-30 | $26,508,600 | $12,109,800 | 54.32% | 22.37% |
| 2018-09-30 | $24,719,500 | $13,745,600 | 44.39% | n/a |
| Date Reported | Revenue (k) | Operating Expenses (k) | Operating Margin | YoY Growth |
|---|---|---|---|---|
| 2022-09-30 | $32,250,300 | $3,941,400 | 14.32% | -14.61% |
| 2021-09-30 | $29,060,600 | $3,344,800 | 16.77% | 152.56% |
| 2020-09-30 | $23,518,000 | $3,993,800 | 6.64% | -56.83% |
| 2019-09-30 | $26,508,600 | $3,266,500 | 15.38% | -2.1% |
| 2018-09-30 | $24,719,500 | $3,644,000 | 15.71% | n/a |
At today's price of $103.33 per share, Starbucks is -7.68% away from its target price of $111.93, and on average, analysts give the stock a rating of buy. 1% of the company's shares are linked to short positions, and 75% of the shares are owned by institutional investors.
