Starbucks Price To Sales vs. Profit Margin

SBUX Stock  USD 96.44  0.13  0.13%   
Based on Starbucks' profitability indicators, Starbucks is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in October. Profitability indicators assess Starbucks' ability to earn profits and add value for shareholders.

Starbucks Price To Sales Ratio

3.66

At this time, Starbucks' Price To Sales Ratio is fairly stable compared to the past year. Operating Cash Flow Sales Ratio is likely to rise to 0.51 in 2024, whereas Days Sales Outstanding is likely to drop 8.89 in 2024. At this time, Starbucks' Operating Income is fairly stable compared to the past year. Income Before Tax is likely to rise to about 6.5 B in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (665.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.240.2974
Significantly Down
Pretty Stable
Net Profit Margin0.190.1828
Sufficiently Up
Slightly volatile
Operating Profit Margin0.0880.1571
Way Down
Slightly volatile
Pretax Profit Margin0.250.2338
Notably Up
Slightly volatile
Return On Assets0.20.187
Notably Up
Very volatile
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' Revenue Breakdown by Earning Segment

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For more information on how to buy Starbucks Stock please use our How to Invest in Starbucks guide.
Is Hotels, Restaurants & Leisure space 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
(0.06)
Dividend Share
2.28
Earnings Share
3.57
Revenue Per Share
32.094
Quarterly Revenue Growth
(0.01)
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 Profit Margin vs. Price To Sales 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 rated below average in price to sales category among its peers. It is rated below average in profit margin category among its peers fabricating about  0.04  of Profit Margin per Price To Sales. The ratio of Price To Sales to Profit Margin for Starbucks is roughly  26.85 . At this time, Starbucks' Price To Sales Ratio is fairly stable compared to the past year. 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' Earnings Breakdown by Geography

Starbucks Profit Margin vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Starbucks

P/S

 = 

MV Per Share

Revenue Per Share

 = 
3.00 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Starbucks

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.11 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Starbucks Profit Margin Comparison

Starbucks is currently under evaluation in profit margin category among its peers.

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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-700.4 M-665.4 M
Operating Income6.8 B7.1 B
Income Before Tax6.2 B6.5 B
Total Other Income Expense Net423.1 M444.2 M
Net Income4.7 BB
Income Tax Expense1.5 B1.5 B
Net Income Applicable To Common Shares3.8 BB
Net Income From Continuing Ops4.7 B2.6 B
Non Operating Income Net Other111.5 M106 M
Interest Income73.1 M89.5 M
Net Interest Income-422 M-400.9 M
Change To NetincomeB2.1 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.
Pair CorrelationCorrelation Matching

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 Real Estate Thematic Idea Now

Real Estate
Real Estate Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Real Estate theme has 61 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 Real Estate Theme or any other thematic opportunities.
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Additional 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.