SBUXSBUX
US • —
$102.19
P/E
77.99
PEG
—
FCF Yield
—
Rev Growth YoY
+5.8% YoY
Gross Margin
21.9%
Health Score
4/10
D/E Ratio
8.07
Confidence
LOW
Business Snapshot
Starbucks operates as a global roaster, marketer, and retailer of specialty coffee, with company-operated and licensed stores worldwide. The company generates revenue primarily through beverage sales, followed by food, packaged coffee, and merchandise across its store network. Operating in the highly competitive quick-service restaurant and coffee shop market, Starbucks maintains a dominant position through brand recognition, store density, and its loyalty ecosystem. With a market cap tier unavailable from the data, the company's financial scale is partially visible through its TTM revenue figure, which is also not provided. A defining characteristic of Starbucks is its reliance on a vast global store network and premium pricing strategy, which creates both a competitive moat and exposure to operational cost pressures.
Financial Health
Starbucks reports a gross margin of 21.9% and a net margin of 3.9%, without prior-year comparisons to assess direction. The balance sheet appears stretched, with a Debt/Equity ratio of 8.07x indicating a highly leveraged capital structure and a current ratio of 0.72x suggesting potential short-term liquidity constraints...
Risk Assessment
- VALUATION — P/E of 77.99x trades at a significant premium to the sector average of 22x, implying elevated market expectations.
- EARNINGS QUALITY — The company has beaten estimates in only 1 of the last 4 quarters, indicating a low rate of earnings predictability.
- DEBT / LIQUIDITY — Debt/Equity of 8.07x reflects a highly leveraged balance sheet, and the current ratio of 0.72x points to potential short-term liquidity risk.
- REVENUE DECELERATION — While revenue grew 5.8% YoY, no QoQ data is available to confirm or deny a recent deceleration, limiting trend clarity.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Starbucks reports a gross margin of 21.9% and a net margin of 3.9%, without prior-year comparisons to assess direction. The balance sheet appears stretched, with a Debt/Equity ratio of 8.07x indicating a highly leveraged capital structure and a current ratio of 0.72x suggesting potential short-term liquidity constraints. Return on equity stands at 115.7%, which is elevated by the high debt load. Free cash flow data is not available, preventing an assessment of cash generation or burn. Overall, the combination of thin net margins and high leverage limits financial flexibility, which could constrain dividend capacity or reinvestment and raises the risk of dilution if capital needs arise.
- VALUATION — P/E of 77.99x trades at a significant premium to the sector average of 22x, implying elevated market expectations. - EARNINGS QUALITY — The company has beaten estimates in only 1 of the last 4 quarters, indicating a low rate of earnings predictability. - DEBT / LIQUIDITY — Debt/Equity of 8.07x reflects a highly leveraged balance sheet, and the current ratio of 0.72x points to potential short-term liquidity risk. - REVENUE DECELERATION — While revenue grew 5.8% YoY, no QoQ data is available to confirm or deny a recent deceleration, limiting trend clarity. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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