Starbucks Corp Secures High Rating Under Growth Model

Starbucks Corp shines with a 66% rating from the P/B Growth Investor model. The report signifies potential positive stock performance fueled by strong fundamentals and favorable ratios.

Date: 16-02-2025

AI Rating: 6

SBUX’s Performance Overview

Starbucks Corp (SBUX) achieved a commendable rating of 66% using the P/B Growth Investor model, which indicates its fundamental strength and valuation are viewed positively. A rating of 80% or higher often signals notable interest from the strategy, thus the current rating might suggest limited investor enthusiasm.

Key Ratios and Metrics

The report showcases several metrics where SBUX has performed well, particularly in the following areas:

Book/Market Ratio: Pass - This indicates that the stock is reasonably priced compared to its book value.
Return on Assets: Pass - A positive sign indicating efficient use of assets.
Cash Flow from Operations to Assets: Pass - Highlights strong cash flow management.
Sales Variance: Pass - Suggests healthy sales performance.
Capital Expenditures to Assets: Pass - Indicates investments are being made wisely.

However, not all ratios are favorable:

Return on Assets Variance: Fail - This may suggest fluctuations in profitability relative to the assets.
Advertising to Assets: Fail - Could indicate underinvestment in marketing efforts.
Research and Development to Assets: Fail - Suggests a potential lack of innovation investment.

Implications for Investors

The mixed results across the various metrics could lead to cautious optimism from investors. While the passing scores generally indicate sound operational management, the failing categories raise potential concerns about future growth and competitiveness in the dynamic restaurant sector. Investors should weigh these factors carefully before making decisions.

Stocks: SBUX