Here Are the Facts You Need to Understand Starbucks (SBUX)

Large-cap consumer discretionary company Starbucks has moved 1.2% this afternoon, reaching $107.31 per share. In contrast, the average analyst target price for the stock is $104.55.

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company is based in the United States. Starbucks currently returns an annual dividend yield of 2.0%.

Make Sure to Consider the Following Before Buying Starbucks:

  • Starbucks has moved 11.0% over the last year.

  • SBUX has a forward P/E ratio of 24.1 based on its EPS guidance of 4.45.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 0.5%.

  • The company has a price to earnings growth (PEG) ratio of 1.73.

Starbucks Has Irregular Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023 5,163,400 2,180,000 2,983,400 16.72
2022 4,397,300 1,841,300 2,556,000 -43.44
2021 5,989,100 1,470,000 4,519,100 3857.18
2020 1,597,800 1,483,600 114,200 -96.48
2019 5,047,000 1,806,600 3,240,400 -67.47
2018 11,937,800 1,976,400 9,961,400

Starbucks's free cash flows have a decent average of $3.9 Billion over the last 6 years, but they are highly variable since their coefficient of variability is 285.9%. The compounded average growth rate over this period is -18.2%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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