Starbucks Corporation [NASDAQ: SBUX] shares went lower by -1.94% from its previous closing of $93.75, now trading at the price of $91.93, also adding -1.82 points. Is SBUX stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 3.48 million contracts. Compared to the average trading volume of SBUX shares, the company saw a far better performance. Moreover, the stock has a 1.14B float and a -0.31% run over in the last seven days. SBUX share price has been hovering between $99.72 and $62.93 lately, and is definitely worthy of attention.
Starbucks Corporation [NASDAQ:SBUX]: Analyst Rating and Earnings
Its stock price has been found in the range of 62.93 to 99.72. This is compared to its latest closing price of $93.75.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Tue 28 Jan (In 4 Days).
Fundamental Analysis of Starbucks Corporation [SBUX]
Now let’s turn to look at profitability: with a current Operating Margin for Starbucks Corporation [SBUX] sitting at +14.73 and its Gross Margin at +21.62, this company’s Net Margin is now 13.60%. These measurements indicate that Starbucks Corporation [SBUX] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 49.81, and its Return on Invested Capital has reached 77.60%. Its Return on Assets is 16.60.
Similarly, its Total Debt to Total Capital is 224.58, while its Total Debt to Total Assets stands at 58.46.
What about valuation? This company’s Enterprise Value to EBITDA is 21.18 and its Total Debt to EBITDA Value is 2.10. The Enterprise Value to Sales for this firm is now 4.28, and its Total Debt to Enterprise Value stands at 0.10.
Shifting the focus to workforce efficiency, Starbucks Corporation [SBUX] earns $76,594 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 19.86 and its Total Asset Turnover is 1.22. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.67 and its Current Ratio is 0.92. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Starbucks Corporation [SBUX] has 1.17B shares outstanding, amounting to a total market cap of $109.47B. Its stock price has been found in the range of 62.93 to 99.72. At its current price, it has moved down by -7.81% from its 52-week high, and it has moved up 46.09% from its 52-week low.
This stock’s Beta value is currently 0.55, which indicates that it is 1.68% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.57. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Starbucks Corporation [SBUX] a Reliable Buy?
Shares of Starbucks Corporation [SBUX], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.