Starbucks Stock Performance

SBUX
 Stock
  

USD 98.66  3.54  3.46%   

On a scale of 0 to 100, Starbucks holds a performance score of 12. The entity has a beta of 1.0279, which indicates a somewhat significant risk relative to the market. Let's try to break down what Starbucks's beta means in this case. Starbucks returns are very sensitive to returns on the market. As the market goes up or down, Starbucks is expected to follow. Although it is vital to follow Starbucks current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Starbucks technical indicators, you can presently evaluate if the expected return of 0.37% will be sustainable into the future. Please operates Starbucks mean deviation, information ratio, as well as the relationship between the Information Ratio and downside variance to make a quick decision on whether Starbucks existing price patterns will revert.
  
Starbucks Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Starbucks are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Starbucks showed solid returns over the last few months and may actually be approaching a breakup point. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0215
Payout Ratio
0.68
Last Split Factor
2:1
Forward Annual Dividend Rate
2.12
Dividend Date
2022-11-25
Ex Dividend Date
2022-11-09

Starbucks Price Channel

Begin Period Cash Flow6455700000.00
DescriptionStarbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through thr
Total Cashflows From Investing Activities-2146300000.00

Starbucks Relative Risk vs. Return Landscape

If you would invest  8,246  in Starbucks on September 2, 2022 and sell it today you would earn a total of  1,974  from holding Starbucks or generate 23.94% return on investment over 90 days. Starbucks is currently generating 0.374% in daily expected returns and assumes 2.3686% risk (volatility on return distribution) over the 90 days horizon. In different words, 20% of stocks are less volatile than Starbucks, and 93% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Starbucks is expected to generate 1.56 times more return on investment than the market. However, the company is 1.56 times more volatile than its market benchmark. It trades about 0.16 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.08 per unit of risk.

Starbucks Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Starbucks' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Starbucks, and traders can use it to determine the average amount a Starbucks' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1579

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Estimated Market Risk
 2.37
  actual daily
 
 20 %
of total potential
 
2020
Expected Return
 0.37
  actual daily
 
 7 %
of total potential
 
77
Risk-Adjusted Return
 0.16
  actual daily
 
 12 %
of total potential
 
1212
Based on monthly moving average Starbucks is performing at about 12% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Starbucks by adding it to a well-diversified portfolio.

About Starbucks Performance

To evaluate Starbucks Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Starbucks generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Starbucks Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Starbucks market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Starbucks's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash11.2 M12 M
Return on Investment 56.09  48.38 
Return on Average Assets 11.05  18.17 
Return on Average Equity 122.86  132.56 
Return on Invested Capital 0.40  0.35 
Return on Sales 0.14  0.12 

Things to note about Starbucks

Checking the ongoing alerts about Starbucks for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Starbucks help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Starbucks Alerts

Equity Alerts and Improvement Suggestions

Starbucks has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company currently holds 13.12 B in liabilities with Debt to Equity (D/E) ratio of 807.4, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Starbucks has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Starbucks until it has trouble settling it off, either with new capital or with free cash flow. So, Starbucks' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Starbucks sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Starbucks to invest in growth at high rates of return. When we think about Starbucks' use of debt, we should always consider it together with cash and equity.
About 72.0% of Starbucks shares are owned by institutional investors
On 25th of November 2022 Starbucks paid $ 0.53 per share dividend to its current shareholders
Latest headline from news.google.com: Starbucks Hard Pass Here - Seeking Alpha
Additionally, take a look at World Market Map. You can also try Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for analysis

When running Starbucks price analysis, check to measure Starbucks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Starbucks is operating at the current time. Most of Starbucks' value examination focuses on studying past and present price action to predict the probability of Starbucks' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Starbucks' price. Additionally, you may evaluate how the addition of Starbucks to your portfolios can decrease your overall portfolio volatility.
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Is Starbucks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Starbucks. If investors know Starbucks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Starbucks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.49) 
Market Capitalization
117.3 B
Quarterly Revenue Growth YOY
0.033
Return On Assets
0.0936
The market value of Starbucks is measured differently than its book value, which is the value of Starbucks that is recorded on the company's balance sheet. Investors also form their own opinion of Starbucks' value that differs from its market value or its book value, called intrinsic value, which is Starbucks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Starbucks' market value can be influenced by many factors that don't directly affect Starbucks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Starbucks' value and its price as these two are different measures arrived at by different means. Investors typically determine Starbucks value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Starbucks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.