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Starbucks (SBUX) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Consumer Cyclical•Restaurants
C
AverageMetricSide Score: 43/100
ProfitabilityProfit10/30
GrowthGrowth9/25
Balance SheetBalance8/25
Cash QualityCash16/20
Price & Volume
Market Cap $118.81B

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Moat Signals

Competitive analysis based on 68 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~10.0% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

Limited ROE data for a reliable assessment.

Cash Generation

Moderate Moat

7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Moderate Moat

Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 68 quarters

Some Concerns

Margin Pressure

Red Flag

Operating margins dropped 38.9% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Healthy

FCF covers net income by 1.9x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$38.47B
5.8%
Q. Revenue
$9.53B
TTM EBITDA
$4.61B
25.0%
TTM Op. Income
$2.93B
35.5%
Q. Op. Income
$828.10M
TTM Net Income
$1.50B
52.2%
Q. Net Income
$510.90M
EPS
$0.45
Shares Out.
$1.14B
0.3%
$38.47B in TTM revenue grew 5.8% YoY, reaching $9.53B last quarter. TTM EBITDA of $4.61B and TTM operating income of $2.93B shows growth is flowing through. Net income of $1.50B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
12.8%
Op. Margin
8.7%
26.7%
Net Margin
5.4%
22.2%
Op. margin of 8.7% is up 1.8% YoY — cost efficiency is improving. Net margin at 5.4%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
79.4x
P/S Ratio
3.1x
P/B Ratio
N/A
At 79.4x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 3.1x and P/B of 0.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$30.56B
Cash
$1.53B
Long-Term Debt
$13.08B
Book Value
$-8.47B
D/E Ratio
N/A
Debt/EBITDA
10.7

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$364.50M
Free Cash Flow
$91.80M
130.9%
FCF Margin
0.2%
FCF / Net Income
0.2
FCF of $91.80M on $364.50M in operating cash flow. The FCF / Net Income ratio of 0.1x indicates partial cash conversion — earnings quality needs attention.

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