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Is Starbucks Corporation(NASDAQ: SBUX), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Starbucks Corporation (NASDAQ: SBUX) has been on the stock market since its IPO date on the 6/26/1992. Starbucks Corporation is in the Specialty Eateries industry and Services sector. Average volume for Starbucks Corporation, is 8728.94, and so far today it has a volume of 6222000. Performance year to date since the 6/26/1992 is -5.23%.

To help you determine whether Starbucks Corporation is undervalued the following values will help you decide. P/E is 31.49 and forward P/E is 25.95. PEG perhaps more useful shows that Starbucks Corporation has a value for PEG of 1.68. P/S ratio is 4.02 and the P/B ratio is 14.44. The P/Cash and P/Free cash flow is 35.65 and 47.1 respectively.

At the current price Starbucks Corporation is trading at, 56.31 (0.14% today), Starbucks Corporation has a dividend yield of 1.42%, and this is covered by a payout ratio of 44.30%. Earnings per share (EPS) is 1.79, and this is looking to grow in the next year to 14.88% after growing 34.50% this past year. EPS growth quarter over quarter is 23.30%, and 7.30% for sales growth quarter over quarter.

The number of shares outstanding is 1466.6, and the number of shares float is 1425.27. The senior management bring insider ownership to 0.10%, and institutional ownership is at 70.30%. The float short is 0.92%, with the short ratio at a value of 1.5. Management has seen a return on assets of 20.60%, and also a return on investment of 34.10%.

The ability for Starbucks Corporation, to deal with debt, means it current ratio is 1.1, and quick ratio is 0.8. Long term debt/equity is 0.56 and total debt/equity is 0.63. In terms of margins, Starbucks Corporation has a gross margin of 31.20%, with its operating margin at 18.80%, and Starbucks Corporation has a profit margin of 13.00%.

The 52 week high is -10.82%, with 8.22% being its 52 week low. The 20 day simple moving average is -0.11% and the 200 day simple moving average is -2.11%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Mark Hines

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