The issue many people seem to have with Starbucks is their products are expensive compared, yet that has not stopped people from consuming their products. With that in mind, Starbucks has innovated and continued to give people reasons to return to their stores. With the addition of ordering ahead, that has certainly smoothed out since the initial launch and seems to be working well.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Starbucks income statement, its balance sheet, and the statement of cash flows. Potential Starbucks investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Starbucks investors may use each financial statement separately, they are all related. The changes in Starbucks's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Starbucks's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Starbucks
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Starbucks performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Starbucks shares is the value that is considered the true value of the share. If
the intrinsic value of Starbucks is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Starbucks. Please read more on our
fundamental analysis page.
How effective is Starbucks in utilizing its assets?
Starbucks reports assets on its Balance Sheet. It represents the amount of Starbucks resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Starbucks aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Hotels, Restaurants & Leisure space. To get a better handle on how balance sheet or income statements item affect Starbucks volatility, please check the breakdown of all its
fundamentals.
Are Starbucks Earnings Expected to grow?
The
future earnings power of Starbucks involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Starbucks factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Starbucks
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Starbucks
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Starbucks earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Starbucks dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Starbucks one year expected dividend income is about USD1.41 per share.
Dividends Paid is likely to rise to about 2.9
B in 2024, whereas
Dividend Yield is likely to drop 0.01 in 2024.
Investing in dividend-paying stocks, such as Starbucks is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Starbucks must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Starbucks. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Starbucks Gross Profit
Starbucks Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Starbucks previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Starbucks Gross Profit growth over the last 10 years. Please check Starbucks'
gross profit and other
fundamental indicators for more details.
Detailed Outlook On Starbucks
Taking a peak at the stock chart using the monthly time frame, we can see that price has done nothing but increase recently, giving investors a healthy return. Coffee is one item that many people are addicted too and many get stuck in a pattern of getting coffee every day. As long as Starbucks can continue to save people time, their stock chart should continue to appreciate.
Some of the risks associated with investing in Starbucks is a general economic slow down, because people will cut back if they fear their wages or working hours are in jeopardy. Secondly, since this is a food product, they have to maintain the highest quality possible because people will stop coming as often if they feel unsafe consuming their products. Lastly, brand image is important because many people can spot this brand from a mile away and it is known worldwide. If something were to affect the brand, it could cost them in the future.
With all of that being said, you have to look at this company yourself and figure out if it is a fit for your current portfolio. I would take a good long look at the others in this space because there could be something else that provides greater value. Look at the fundamentals and see if they have a forward looking plan and see if it aligns with what you believe in. People will always need their coffee and will get it one way or another. If you get stuck in your research, consult an investing professional and they can help to point you in the right direction. Starbucks has mastered brand image and product placement and continues to execute to this day. Until something crazy happens, I’m sure Starbucks will remain in their current position in the market and only grow larger.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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