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Starbucks is the premier roaster, marketer, and retailer of specialty coffee in the world, operating in 89 markets. Formed in 1985, Starbucks Corporation s common stock trades on the Nasdaq Global Select Market ( Nasdaq ) under the symbol SBUX.
$104.13
$2.37 (-2.23%)
Price from 13 days ago
Operating margin is thin at 7.90%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.8%, essentially flat. Margins also contracted 7.1pp. This is a business that needs a catalyst.
At 79x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 26% versus the prior year, cash generation momentum has weakened.
79.5x earnings, 43.7x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$38.47B
▲ +2.8% YoY
Net Income (TTM)
$1.50B
▼ -50.6% YoY
Op. Margin
7.62%
▼ -7.1pp YoY
ROIC
7.48%
▼ -7.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.73B
▼ -26.4% YoY
Op. Cash Flow (TTM)
$4.35B
▼ -22.1% YoY
Net Debt
$22.69B
Cash & Equiv.
$1.70B
5Y CAGR: +9.6%
5Y CAGR: +84.5%
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