Starbucks Revenue vs. Operating Margin
| SBUX Stock | USD 87.15 0.94 1.09% |
Total Revenue | First Reported 1990-12-31 | Previous Quarter 9.4 B | Current Value 9.4 B | Quarterly Volatility 2.7 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.24 | 0.2974 |
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| Net Profit Margin | 0.19 | 0.1828 |
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| Operating Profit Margin | 0.088 | 0.1571 |
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| Pretax Profit Margin | 0.25 | 0.2338 |
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| Return On Assets | 0.2 | 0.187 |
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For Starbucks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Starbucks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Starbucks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Starbucks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Starbucks over time as well as its relative position and ranking within its peers.
Starbucks |
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.
Starbucks Operating Margin vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Starbucks's current stock value. Our valuation model uses many indicators to compare Starbucks value to that of its competitors to determine the firm's financial worth. Starbucks is currently regarded number one company in revenue category among related companies. It is rated third in operating margin category among related companies . The ratio of Revenue to Operating Margin for Starbucks is about 237,149,637,442 . At this time, Starbucks' Total Revenue is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Starbucks by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Starbucks' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Starbucks' earnings, one of the primary drivers of an investment's value.Starbucks Revenue vs. Competition
Starbucks is currently regarded number one company in revenue category among related companies. Market size based on revenue of Consumer Discretionary industry is at this time estimated at about 41.29 Billion. Starbucks totals roughly 35.98 Billion in revenue claiming about 87% of stocks in Consumer Discretionary industry.
Starbucks Operating Margin vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Starbucks |
| = | 35.98 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Starbucks |
| = | 0.15 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Starbucks Operating Margin Comparison
Starbucks is currently under evaluation in operating margin category among related companies.
Starbucks Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Starbucks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Starbucks will eventually generate negative long term returns. The profitability progress is the general direction of Starbucks' change in net profit over the period of time. It can combine multiple indicators of Starbucks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -700.4 M | -665.4 M | |
| Operating Income | 6.8 B | 7.1 B | |
| Income Before Tax | 6.2 B | 6.5 B | |
| Total Other Income Expense Net | 423.1 M | 444.2 M | |
| Net Income | 4.7 B | 5 B | |
| Income Tax Expense | 1.5 B | 1.5 B | |
| Net Income Applicable To Common Shares | 3.8 B | 4 B | |
| Net Income From Continuing Ops | 4.7 B | 2.6 B | |
| Non Operating Income Net Other | 111.5 M | 106 M | |
| Interest Income | 73.1 M | 89.5 M | |
| Net Interest Income | -422 M | -400.9 M | |
| Change To Netincome | 2 B | 2.1 B | |
| Net Income Per Share | 3.27 | 3.43 | |
| Income Quality | 2.64 | 2.51 | |
| Net Income Per E B T | 0.78 | 0.52 |
Starbucks Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Starbucks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Starbucks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Starbucks' important profitability drivers and their relationship over time.
Use Starbucks in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Starbucks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Starbucks will appreciate offsetting losses from the drop in the long position's value.Starbucks Pair Trading
Starbucks Pair Trading Analysis
The ability to find closely correlated positions to Starbucks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Starbucks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Starbucks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Starbucks to buy it.
The correlation of Starbucks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Starbucks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Starbucks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Starbucks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Starbucks position
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 Small Growth Funds Thematic Idea Now
Small Growth Funds
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 44 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 Small Growth Funds Theme or any other thematic opportunities.
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Check out World Market Map. For more information on how to buy Starbucks Stock please use our How to Invest in Starbucks guide.You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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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To fully project Starbucks' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Starbucks at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Starbucks' income statement, its balance sheet, and the statement of cash flows.