Starbucks Stock Buy Hold or Sell Recommendation
SBUX Stock | USD 91.50 1.14 1.26% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Starbucks is 'Strong Hold'. Macroaxis provides Starbucks buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SBUX positions. The advice algorithm takes into account all of Starbucks' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Starbucks' buy or sell advice are summarized below:
Real Value 99.08 | Target Price 105.53 | Hype Value 91.56 | Market Value 91.5 | Naive Value 92.05 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Starbucks given historical horizon and risk tolerance towards Starbucks. When Macroaxis issues a 'buy' or 'sell' recommendation for Starbucks, the advice is generated through an automated system that utilizes algorithms and statistical models.
Starbucks |
Execute Starbucks Buy or Sell Advice
The Starbucks recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Starbucks. Macroaxis does not own or have any residual interests in Starbucks or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Starbucks' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Starbucks Trading Alerts and Improvement Suggestions
Starbucks generated a negative expected return over the last 90 days | |
Starbucks has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
The company currently holds 24.6 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. | |
Over 76.0% of Starbucks shares are owned by institutional investors | |
On 23rd of February 2024 Starbucks paid $ 0.57 per share dividend to its current shareholders | |
Latest headline from investorplace.com: 3 Dividend-Growing Stocks to Buy Before You Miss Out |
Starbucks Returns Distribution Density
The distribution of Starbucks' historical returns is an attempt to chart the uncertainty of Starbucks' future price movements. The chart of the probability distribution of Starbucks daily returns describes the distribution of returns around its average expected value. We use Starbucks price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Starbucks returns is essential to provide solid investment advice for Starbucks.
Mean Return | -0.05 | Value At Risk | -1.68 | Potential Upside | 1.67 | Standard Deviation | 1.06 |
Return Density |
Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Starbucks historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Starbucks Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Starbucks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Starbucks backward and forwards among themselves. Starbucks' institutional investor refers to the entity that pools money to purchase Starbucks' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Fisher Asset Management, Llc | 2023-12-31 | 11.4 M | Wells Fargo & Co | 2023-12-31 | 10.8 M | Amvescap Plc. | 2023-12-31 | 10.5 M | Nuveen Asset Management, Llc | 2023-12-31 | 10 M | Charles Schwab Investment Management Inc | 2023-12-31 | 10 M | Bank Of New York Mellon Corp | 2023-12-31 | 9.6 M | Fmr Inc | 2023-12-31 | 9.4 M | Legal & General Group Plc | 2023-12-31 | 8.8 M | Loomis, Sayles & Company Lp | 2023-12-31 | 8.6 M | Vanguard Group Inc | 2023-12-31 | 107.9 M | Blackrock Inc | 2023-12-31 | 78.8 M |
Starbucks Cash Flow Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Change To Inventory | (10.9M) | (49.8M) | (641M) | 366.4M | 329.8M | 346.2M | |
Change In Cash | 1.7B | 2.1B | (3.6B) | 733.1M | 843.1M | 885.2M | |
Free Cash Flow | 114.2M | 4.5B | 2.6B | 3.7B | 4.2B | 4.4B | |
Depreciation | 1.5B | 1.5B | 1.5B | 1.5B | 1.7B | 1.8B | |
Capital Expenditures | 1.5B | 1.5B | 1.8B | 2.3B | 2.7B | 2.8B | |
Net Income | 924.7M | 4.2B | 3.3B | 4.1B | 4.7B | 5.0B | |
End Period Cash Flow | 4.4B | 6.5B | 2.8B | 3.6B | 4.1B | 4.3B | |
Other Non Cash Items | 1.6B | 593M | 1.5B | 1.3B | 1.5B | 1.6B | |
Change To Netincome | (1.5B) | (25.8M) | 766.9M | 1.7B | 2.0B | 2.1B | |
Investments | (370.2M) | 56.7M | (238M) | (2.3B) | (2.0B) | (1.9B) | |
Net Borrowings | 1.6B | 4.7B | (1.7B) | 673.1M | 774.1M | 1.1B | |
Dividends Paid | 1.9B | 2.1B | 2.3B | 2.4B | 2.8B | 2.9B | |
Change Receivables | 197.7M | 2.7M | 43M | (326.1M) | (375.0M) | (356.3M) |
Starbucks Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Starbucks or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Starbucks' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Starbucks stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.15 | |
β | Beta against NYSE Composite | 0.73 | |
σ | Overall volatility | 1.09 | |
Ir | Information ratio | -0.17 |
Starbucks Volatility Alert
Starbucks exhibits very low volatility with skewness of 0.36 and kurtosis of 0.73. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Starbucks' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Starbucks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Starbucks Implied Volatility
Starbucks' implied volatility exposes the market's sentiment of Starbucks stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Starbucks' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Starbucks stock will not fluctuate a lot when Starbucks' options are near their expiration.
Starbucks Fundamentals Vs Peers
Comparing Starbucks' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Starbucks' direct or indirect competition across all of the common fundamentals between Starbucks and the related equities. This way, we can detect undervalued stocks with similar characteristics as Starbucks or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Starbucks' fundamental indicators could also be used in its relative valuation, which is a method of valuing Starbucks by comparing valuation metrics with those of similar companies.
Better Than Average | Worse Than Average | Compare Starbucks to competition |
Fundamentals | Starbucks | Peer Average |
Return On Asset | 0.13 | -0.14 |
Profit Margin | 0.12 % | (1.27) % |
Operating Margin | 0.15 % | (5.51) % |
Current Valuation | 124.7 B | 16.62 B |
Shares Outstanding | 1.13 B | 571.82 M |
Shares Owned By Insiders | 2.03 % | 10.09 % |
Shares Owned By Institutions | 75.95 % | 39.21 % |
Number Of Shares Shorted | 15.43 M | 4.71 M |
Price To Earning | 35.18 X | 28.72 X |
Price To Sales | 2.82 X | 11.42 X |
Revenue | 35.98 B | 9.43 B |
Gross Profit | 8.39 B | 27.38 B |
EBITDA | 7.33 B | 3.9 B |
Net Income | 4.12 B | 570.98 M |
Cash And Equivalents | 3.18 B | 2.7 B |
Cash Per Share | 2.77 X | 5.01 X |
Total Debt | 24.6 B | 5.32 B |
Debt To Equity | 807.40 % | 48.70 % |
Current Ratio | 0.77 X | 2.16 X |
Book Value Per Share | (7.61) X | 1.93 K |
Cash Flow From Operations | 6.01 B | 971.22 M |
Short Ratio | 1.50 X | 4.00 X |
Earnings Per Share | 3.74 X | 3.12 X |
Price To Earnings To Growth | 1.28 X | 4.89 X |
Target Price | 106.52 | |
Number Of Employees | 381 K | 18.84 K |
Beta | 0.98 | -0.15 |
Market Capitalization | 103.6 B | 19.03 B |
Total Asset | 29.45 B | 29.47 B |
Retained Earnings | (7.26 B) | 9.33 B |
Working Capital | (2.04 B) | 1.48 B |
Current Asset | 4.76 B | 9.34 B |
Current Liabilities | 4.55 B | 7.9 B |
Note: Starbucks exotic insider transaction detected [view details]
Starbucks Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Starbucks . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Starbucks Buy or Sell Advice
When is the right time to buy or sell Starbucks? Buying financial instruments such as Starbucks Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 23.8B | 24.6B | 28.3B | 29.7B | Total Assets | 28.0B | 29.4B | 33.9B | 35.6B |
Use Investing Ideas to Build Portfolios
In addition to having Starbucks in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Software Thematic Idea Now
Software
Companies that develop and distribute software and software systems to individuals or business. The Software theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Software Theme or any other thematic opportunities.
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Check out Starbucks Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Starbucks Stock please use our How to Invest in Starbucks guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for Starbucks Stock 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 the 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 0.216 | Dividend Share 2.2 | Earnings Share 3.74 | Revenue Per Share 32.074 | Quarterly Revenue Growth 0.082 |
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 if Starbucks is a good investment 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.