Stock Updates

Is this Large Market Cap Stock target price reasonable for Starbucks Corporation (NASDAQ:SBUX)?

The company in question is, Starbucks Corporation (NASDAQ:SBUX) currently with a stock price of 52.76 (-0.60% today). The market cap for Starbucks Corporation is 77188.41, and is in the sector Services, and Specialty Eateries industry. The target price for Starbucks Corporation is 65.88. Currently Starbucks Corporation is trading with a P/E of 29.51, and a forward P/E of 24.43. Average volume for Starbucks Corporation is 8510.4 and so far today it is 5220100.

Performance in the last year for Starbucks Corporation has been -10.77%. For EPS growth, Starbucks Corporation has seen a growth of 34.50%, and is looking to grow in the next year to 14.23%. More long term stats show that EPS growth has been 24.10% over the last five years and could be 18.84% for the next five years. Starbucks Corporation has seen sales growth quarter over quarter at 7.30%, with EPS growth quarter over quarter at 23.30%. The 20-day simple moving average is -3.72%, with the 200-day simple moving average coming to -6.72%.

Since the IPO date for Starbucks Corporation on the 6/26/1992, Starbucks Corporation has seen performance year to date to be -11.21%. With Starbucks Corporation trading at 52.76, the dividend yield is 1.52%, and the EPS is 1.79.

So could Starbucks Corporation, be undervalued? Well as said before P/E is 29.51. The PEG is 1.57, P/S is 3.76 and the P/B is at 13.53. The P/cash is 33.32, with P/free cash flow at 44.03.

Starbucks Corporation ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.8. This is with long term debt/equity at 0.56, and total debt/equity at 0.63.

In terms of margins, Starbucks Corporation has a gross margin of 59.80%, an operating margin of 18.80% and a profit margin of 13.00%.Payout ratio for Starbucks Corporation is 44.30%. Return on assets come to 20.60% with return on investment coming to 34.10%.

Insider ownership for Starbucks Corporation, is at 0.10% and institutional ownership comes to 70.30%. Outstanding shares are at 1463.01. While shares float is 1422.9. The float short is currently 1.15%, and short ratio is 1.93.

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.

About the author

Stephen Butters

Leave a Comment