SBUX
SBUX — Consumer Cyclical
Graham: 12
Buffett: 8
Lynch: 14
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees...
Price ?
87.11
Market Cap ?
99.1B
P/E ?
53.44
P/B ?
-12.23
Div Yield ?
2.81%
52W Range ?
75.50 - 117.46
200W MA ?
87.65
12
Graham-style buying rate (0-100)
Criteria breakdown
- ✓ Company size sufficient (large-cap) ? $99,052,781,568 — Uses market cap >= $2B as proxy
- ✗ Solid financial condition (CR>=2; LT debt <= NCAV) ? CR=0.72 | D/E=? — Partial: checks current ratio; LT debt vs NCAV unavailable
- ✗ Uninterrupted dividends for 20 years ?
- ✓ No losses in last 10 years ? 10y window — Positive earnings for last 17y
- ✓ EPS growth >= 33% over 10 years ? ~202%
- ✗ Price-to-Book (P/B) <= 1.5 ? -12.23
- ✗ Price-to-Earnings (P/E) <= 15 ? 53.4 — Uses trailing P/E as proxy for 3y avg EPS
- ✗ Combined formula (P/E * P/B) <= 22.5 ? — Needs positive P/E and P/B
- ✗ Margin of safety >= 20% ? -256% — Intrinsic = EPS * 15
- ? High ROE maintained without excessive debt ? — Approximate threshold ROE = 15%, D/E = 1.0
What is evaluated (Graham):
- Valuation discipline and buying below intrinsic value.
- Financial resilience: liquidity and prudent leverage.
- Consistent dividends and earnings over long horizons.
"The intelligent investor is a realist who sells to optimists and buys from pessimists." — Benjamin Graham
8
Buffett-style buying rate (0-100)
Criteria breakdown
- ✗ Positive and growing FCF (multi-year) ? 8,873,100,000 -> 7,053,000,000
- ✗ ROIC >= 12% sustained ? 10.6%
- ? High ROE (proxy for durable advantages) ? — Consistency over years not checked
- ✗ Net profit margin >= 10% ? 5.0% — Derived from available financial filings
- ? Conservative leverage (D/E <= 1.0) ? — No D/E data
- ✓ Sustainable shareholder returns (dividend > 0%) ? 2.81% — Does not assess buybacks or payout safety
What is evaluated (Buffett):
- Durable advantages: high ROE, healthy margins.
- Balance discipline and shareholder friendly capital use.
- Positive free cash flow and efficient reinvestment.
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
14
Lynch-style buying rate (0-100)
Criteria breakdown
- ? PEG ratio (P/E / growth) <= 1.0 ? — needs positive EPS growth
- ✗ Positive multi-year EPS growth (per-year >= 10%) ? ~-17.6%/yr
- ? Conservative leverage (D/E <= 0.5) ? — No D/E data
- ✗ Sustainable profitability (net margin >= 5%) ? 5.0%
- ✓ Earnings stability (no losses in 10y) ? 10y window
What is evaluated (Lynch):
- Growth at a reasonable price (PEG and EPS CAGR).
- Durable earnings with limited drawdowns.
- Conservative balance sheet and baseline profitability.
"Know what you own, and know why you own it." — Peter Lynch