SBUX Stock Report
2-Year Price History
Recent Price
(7/2 4:00PM)
-4.4%
$13.39
52-Week Price
$7.06 - $17.18
Market Capitalization
$9.9 Billion
Most Recent Dividend
$0.00
Ockham's Rating
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SBUX Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at SBUX through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 3.18x and 1.92x respectively.
Utilizing this range we can see that SBUX’s current Price to Sales per share ratio of 0.94x is significantly below its average levels historically. In fact, with a current price of $14.53, SBUX is a full 63% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for SBUX.
SBUX Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of SBUX, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from SBUX. For example, SBUX's Cash Earnings ratio per share has fluctuated between 15.49 and 25.92 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where SBUX is with respect to prior business periods.
So with SBUX's current price (latest close of $14.53) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, SBUX is 26% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with SBUX.
SBUX Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. SBUX may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As SBUX more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
The latest TV Media Discussion
“…Fats and what have you. Anyway what do you think of the whole calorie situation? I'd sometimes rather not know. I mean, I know they're out for the health thing because STARBUCKS start today do this like a lot of them or most of them do nowment grab one of the pieces of cake, about 4 million calories. Robert: got to run a marathon 0 after that snie went to dinner …” …more details…
“…>> i'm a buyer of general mills at $56. The other day I had a friend of mine come over. I made her a cup of coffee. I started to think to myself in my head if I didn't go to STARBUCKS this entire next year, I can save a lot of money. This is happening all across the people are staying home to eat and general mills is benefitting from this. Do you have a favorite ice connell: i'm a big fan of the …” …more details…
“…>> look at the consumer confidence numbers. Today rising unemployment and these are heavily shorted names. >> breakfast couldn't even help STARBUCKS which was down 5%. >> they had a great quarter and when you lock at STARBUCKS up 30% and you look at mcdonald's, it's been struggling along and still up 5% and STARBUCKS is doing the right things and they've cut back on the underperforming stores. They're doingity right thing. >> I love how you always add mccafe in there. …” …more details…
“…Not the case with nvidia. If you watch the fast money halftime reports they talk about puts on nvidia. It is weak today by 3%. STARBUCKS, morgan stanley said the month of may was a little 4 weaker on the sales side and that made them a little bit nervous, but if you look at the chart, they're having a bad day they've had a good year. …” …more details…
“…If you look at amr, united, continental continental, jetblue, all down amr is cut from sell to hold. Our guess, stock off 12% already this month. STARBUCKS tweaking their menu, trying to get things going an. Morgan stanley, tweaking their thoughts. They're cautious, they think the npd group sales data is indicating that specialty coffee …” …more details…
“…Emulex some of the laggard, yahoo! Ebay, cisco and dell, those are your big hitters that we talked about coffee on "squawk on the street," STARBUCKS down 4% today. Morgan stanley did not like what he it saw in terms of sales in the month of may. Electronic arts up 3.8% on an mr. Haines, back to you. >> all right, sir, thank you …” …more details…
“…Outlook has lifted the stocks so what about food? This morning, I was wondering if haines would taste them, but STARBUCKS is trying to health yes, blueberry oat bar, ban nanana walnut, marshmallow dream, got a low calorie content. Are these too expensive for regular people, will this move the needle at all to healthy >> I think for STARBUCKS food has been an opportunity category for them. I think it will help on the margin, I don't think STARBUCKS or coffee houses will become a destination for food but as long as the food is a good compliment to the core coffee offering, I think it could be helpful. So going forward, food could be …” …more details…
“…Definitely cutting back on discretionary spending. It seems many can't give up that morning cup of joe. That's one of the reasons stocks have been percolating this yes, although STARBUCKS has certainly gone through its share of tough time, especially given its coffee is priced at a premium give given competitors. Here's what's behind the run-up for the group. …” …more details…
“…Mr. Coffee and sun beam out. STARBUCKS up and mr. Coffee in. If it breaks, you replace. The reverb rags are going to be felt for a long time and …” …more details…
“…>> aren't you skeptical of that? Come on! >> you are not going to believe what happened. I swear. >> moving on here. STARBUCKS is up 3%. Karen. >> they got an upgrade today I think it outperformed. That was enough to get the stock up 3%. >> petrobras is up 3%. …” …more details…
“…>>> here are some of the other stories we're following on the closing bell ticker right now. STARBUCKS to out perform from neutral. Hiking from $2.17 to $15. STARBUCKS shares on the day are trading higher by more than 3%. Bank of america and merrill lynch upgrading motorola to buy from neutral and increasing …” …more details…
“…Motorola karma phone on june 28. Mow row la is struggling -- motorola is struggling to regain share. The stock is up 4% today for m.O.T. Shares of STARBUCKS also getting a boost. Analyst from baird upgrading the analyst saying he's more confident in their short-term …” …more details…
“…Weak spots in the nasdaq today. My phonies, if you will, the big three in the hand set walls, apple, dow, but rim and palm both sharply higher. STARBUCKS, a standout in this marketplace, over 3% higher today. Big upgrade to buy at rw vard. Waiting for oracle results after the close. That stock is a little soft, …” …more details…
“…Is anything working? I mean just looking here that we have a got the dow down now and the nasdaq lower for the day. What's up? >> appropriate question. STARBUCKS is being upzbraded this morning to outperform from neutral at rw baird. The best performer in the ndx right now. Also strength at etrade, gets an …” …more details…
“…Apple not doing a lot. Big follow through after the 3gs launch. Oracle shares higher after we'll look for that after the close. STARBUCKS being raised to outperform from neutral at rw bear. Let's check on the oil markets with sharon epperson. …” …more details…
“…By and large there's been a lot of talk about anglo american and the last 24, 48 hours and that's going to be interesting. And I was interested what connell had to say a couple hours ago, STARBUCKS, watching that stock. Over here it's getting a fair bit of bad press, but things with coffee costing so much and it's going cheaper. Alexis: was connell doing advertising for STARBUCKS. Connell: it was upgraded, alexis: I thought maybe you had a cup sitting on your desk or something. Mike, what do you have. >> first, you want to see the strength of a bounce, a feeble …” …more details…
“…Alcoa here after closing at it is up to $10.17 in the premarket so gaining back a little bit of what was lost here in yesterday's trading. We will see if that trend continues into the regular in terms of stock-related news that we're watching STARBUCKS looks like a story stock today after an upgrade that came in that stock is moving higher in premarket trading. Upgraded STARBUCKS to outperform this stock has had a nice run so far this year. Still down about 16% over the one year time frame but it's run up 40 plus percent here in 2009 for STARBUCKS. That's an early look at what's happening here in the united states ahead of the trading now over to gavin gray in london for a look at how things are >> good morning, connell, well things have been flat really all …” …more details…
“…Google stock a little. I think google will have a good theresa in texas. >> caller: boo-yah, jim. It's great to hear you. I'm a big STARBUCKS fan. I was curious if it's a good time to buy their stock yet? >> I don't want to buy it yet. I'm a triple venti cappuccino with skim wet. Mcdonald's is there. Mcdonald's is aggressive. I don't think the turn is complete STARBUCKS. You still have time to get into bob in california. Bob. >> caller: hey, boo-yah. You. >> boo-yah, bob. …” …more details…
“…A down day. >> i'm looking at mcdonald's. Sold off six points off of the high last week because of the minor strength in the dollar. I like the stock because it's going after STARBUCKS for one as far as I know, the $4 lattes are going the way the fractions did in the markets and people can't afford them. If you believe what the world bank said, I know you disagreed …” …more details…
“…What are you looking at? >> you know why smuckers did well, they bought foljers coffee and maybe people are drinking less STARBUCKS. Who knows. A pop, just a little, erin, three points maybe from the futures claims, futures on the continuing claims for finally showing a little bit of improvement. …” …more details…
“…Consumer to consumer, then listening to what the consumer is saying about your product so the way the big guys should play that. Kodak seemed to be doing that and I think a lot more people if you want to move product, too, like STARBUCKS, for instance, if they put something on twitter, they're going to move product like that. I'm surprised these guys haven't gotten on to the twitter buzz they will and then I think it will be a nice pop for them. >> I just wonder if twitter's going to exist as a …” …more details…
“…We have all the doughnuts to show your products, because research is important, of the most important thing I think to point out, mr. Travis, at a time when STARBUCKS for example is shrinking and keeping stores at a minimum, whatever they can keep at the lowest number, you are expanding and you opened 15 new stores this week alone. …” …more details…
“…Is rolling in dough while grinding it out against >> liz: talking, of course, about the ceo of dunkin' brands, battling it out with STARBUCKS an he ekes's expanding. We have that up next on fox nigel travis and he says friends don't let friends drink STARBUCKS. >> david: ooh! >> liz: yeah! …” …more details…
“…Now offering very fine medical services at one 1/5 $2 per month I would argue that is the cost of the STARBUCKS are cigarettes so when you talk about personal responsibility, if health is important they should step up to the plate and pay for it by not here advocating concierge …” …more details…
“…The target 65 from 57 there. Jen zooim is down 4%. They stopped production at a key plant in boston after a virus was detect there had and STARBUCKS shares down .75 of 1%. They're going to revamp the method of brewing and grinding coffee aimed at boosting sales and cost cutting. Bertha is down at the nymex. …” …more details…
“…Have a great afternoon. >>> STARBUCKS is planning to grind and brew coffee in a change of cutting costs according to the "wall street the fed governor warns high unemployment may hinder recovery …” …more details…
“…Final approval to access a quart billion dollars from g.M. To support it until it leaves that's just crossing right now I believe, tom, you've got breaking news on STARBUCKS. >> tom: STARBUCKS saying there's a laceration hazard prompting a recall of coffee grinders. There were three reports of hand lacerations when the grinders turned on unexpectedly. >> cheryl: stocks low at 20%. That could be a potential lawsuit issue for STARBUCKS in a bad way and not good -- >> tom: you put your fingers in the grinder to grind the coffee? >> cheryl: no, tom, you don't. >> tom: that's a tip of the day. …” …more details…
“…2009 earnings estimate. >> take a look at green mountain coffee. It is a roast that completely guys s defies logic. This stock is a beneficiary of the move away from STARBUCKS. Stay with it. >> the liquidator riding this coffee name to a caffeine high. Jumping 14% after the company announced a three for two stock …” …more details…
“…Here in the bar especially on a tgif. That is the big question out there. These automakers they own the franchise. If it was mcdonald's or STARBUCKS, I don't think STARBUCKS leases out its franchises but say it owns it. It doesn't like how that person is running the franchise. They can close shop, force them to close shop. >> well, it is a lot tougher …” …more details…
“…Situation, but overall? Do you think abuse of power is a fair thing to say about what's going on in washington? "street signs" is where you can let us know your thoughts. Move over, mcdonald's, step aside STARBUCKS. We have the best-performing restaurant stock of the past decade and the ceo will be with I don't know if that's the one, …” …more details…
“…Cars we can drive. They're going to set what kind of paychecks that we can receive. They're taking over our mortgage companies. I mean, what's next? Will they soon take over STARBUCKS and decide what kind of coffee we can have again, this is, this is no way to run and economy. And furthermore, it is costing billions and billions of dollars. …” …more details…
“…And stay long target, for instance, mcdonald's, for they benefit from foreign >> they were up 8%, not $8. STARBUCKS versus mcdonald's, that's an entire play on the people overseas are feeled the economy in europe will not rebound as quickly as the u.S. They'll have a cup of joe versus …” …more details…
“…Discount brokerage. Marvel up 14%, the pop coming from jmp it take a look at the last six months for that stock, up about 100%. Finally, I want to point out, STARBUCKS can't really chase the news flow but it is outperforming up 1.4%. I think we're headed to rick in is that right? …” …more details…
“…Palm free over the weekend and palm free over the weekend and reaction big-- apple's biggest peers todayment if you visited STARBUCKS over memorial day weekend and used your credit card, make sure you check your credit card as many as a million STARBUCKS customers were actually double charged on may 22nd and may 23rd. I was able to speak to a company spokesperson who says they have resolved the issues and apologized for any inconvenience and double-check your credit card if you happen to swipe it over at STARBUCKS over memorial day weekend and last but not least, we're always talking about the chips here, chips, in focus today, texas instruments coming out and saying that they upgraded their quarterly profit and sales target. …” …more details…
“…Barring lesbians from serving openly in the armed forces. The decision is seen as a setback for those who hoped president obama would push forcefully to see it overturned. >>> STARBUCKS is apologizing after it accidentally charged thousands of customers double for their drink for to days in …” …more details…
“…How many of your friends and colleagues have had to do that. Working on wall street or working in a particular sector but there's no opportunities and you have to get what you can >> a lot of people would be lucky to get a job at STARBUCKS. It is hard. I will probably have to go back to bar tending for a little bit but it seem just as competitive as wall street if not more. A lot of people laid off in the same position i'm in, so a lot …” …more details…
“…Your senior year of college? >> um, well, it makes me really nervous of course. A lot of my friends have a lot of them have resulted in working at STARBUCKS and their degree has gotten them absolutely nowhere. I hope that things pick up so I actually do have job opportunities out there once I alexis: dean you smiled there. …” …more details…
“…Joe from. Not going to be -- I can tell you -- >> are they for sale. >> one kind of coffee that won't be in these cups and that's the turn coats at STARBUCKS that are in bed with morning charles. It will not be -- why are you laughing? Not be STARBUCKS coffee in the "squawk box" mug. It remains to be seen if it's mickey ds or something else. >>> coming up, tomorrow's big …” …more details…