STARBUCKS CORP (SBUX)

Business overview

Starbucks generates an operating margin of 7.9% and a free cash flow margin of 6.6%, contributing to a Financial Quality score of 44. Gross margin data is currently unavailable, which introduces uncertainty regarding the company's core cost structure. These moderate profitability metrics reflect operational pressure within the retail-eating and drinking places industry.

Financial health

The Balance Sheet pillar receives a moderate score of 48, indicating balanced liquidity and financial structure. Cash generation is anchored by a free cash flow yield of 5.7% alongside a 6.6% free cash flow margin. However, specific debt and cash reserve figures are unavailable in the provided dataset, leaving precise leverage risks uncertain.

Gross Margin

Data unavailable

Operating Margin

7.9%

Current Ratio

0.7x

Debt / Equity

-1.80

Free Cash Flow (TTM)

$2.4B

Interest Coverage

5x

Valuation

Starbucks holds a Valuation pillar score of 69, trading at a P/E ratio of 25.77 and an EV/EBITDA of 11.21. Its Price-to-Sales ratio stands at 1.4 while offering a free cash flow yield of 5.7%. While these valuation multiples appear moderate, earnings contraction creates uncertainty around valuation stability.

P/E (TTM)

25.8x

Forward P/E

Data unavailable

Price / Sales

1.4x

EV / EBITDA

11.2x

FCF Yield

5.7%

Key risks

• Year-over-year EPS growth dropped sharply by -50.8%, indicating severe earnings pressure.
• Low Growth pillar score of 19 driven by sluggish year-over-year revenue growth of 2.8%.
• Operating margin is thin at 7.9%, offering limited buffer against rising operational costs.