Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

Starbucks Corp., P/S, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01), 10-K (reporting date: 2016-10-02), 10-K (reporting date: 2015-09-27), 10-K (reporting date: 2014-09-28), 10-K (reporting date: 2013-09-29), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-10-02), 10-K (reporting date: 2010-10-03), 10-K (reporting date: 2009-09-27), 10-K (reporting date: 2008-09-28), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-10-01), 10-K (reporting date: 2005-10-02).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Starbucks Corp. Annual Report.


Share Price Analysis
The share price demonstrated significant volatility over the analyzed period. Starting at $15.6 in late 2005, the price peaked early at $18.3 in 2006 before experiencing a steep decline to $4.23 by late 2008, likely reflecting adverse market or company-specific conditions at that time. Following this low, the share price showed a strong recovery trend, increasing steadily to reach $40.27 by 2013. Subsequent years saw continued growth, with fluctuations, reaching a high of $110.78 by late 2021. However, after this peak, the price retraced somewhat but remained relatively elevated, closing at $98.26 by late 2024. Overall, the share price exhibited a long-term upward trajectory despite intermittent declines.
Sales Per Share Trends
Sales per share exhibited a consistent upward trend throughout the period. Beginning at $4.17 in 2005, sales per share increased steadily, with minor fluctuations, reaching $7.08 in late 2008, just as the share price bottomed. Despite the global downturns around 2008-2009, sales per share maintained resilience, continuing growth to $19.93 by late 2018. Although there was a slight dip to $20.04 in 2020, likely linked to broader economic impacts during that year, sales quickly recovered, reaching $31.91 by 2024. This steady increase highlights a robust expansion in revenue generation on a per-share basis over the years.
Price-to-Sales (P/S) Ratio Observations
The P/S ratio reveals important valuation insights. Initially high at 3.74 in 2005 and stable until 2006, the ratio sharply dropped to 0.6 in 2008, concurrent with the share price decline and modest sales growth, indicating the stock was undervalued relative to sales during this period. Following this trough, the P/S ratio rebounded and stabilized around 2.5 to 4.7 from 2010 onward. Notably, the ratio peaked at 4.73 in 2015, suggesting heightened market optimism or premium valuation relative to sales. Afterward, the ratio gradually decreased, settling near 3.08 by 2024, indicative of a moderately lower valuation multiple despite substantial sales growth, possibly reflecting a more conservative market stance or normalization of valuation levels.
Overall Financial Trends
The data highlights a company experiencing strong sales growth over the nearly two decades analyzed, with increasing sales per share demonstrating operational expansion. While the share price mirrored sales trends with an overall increase, it was subject to significant volatility linked to broader market events or company-specific conditions. Valuation multiples adjusted accordingly, with periods of undervaluation and premium pricing relative to sales. The moderate decline in the P/S ratio in recent years alongside rising sales may imply a maturing business phase where valuation growth is tempered compared to earlier rapid expansion.

Comparison to Competitors

Starbucks Corp., P/S, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01), 10-K (reporting date: 2016-10-02), 10-K (reporting date: 2015-09-27), 10-K (reporting date: 2014-09-28), 10-K (reporting date: 2013-09-29), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-10-02), 10-K (reporting date: 2010-10-03), 10-K (reporting date: 2009-09-27), 10-K (reporting date: 2008-09-28), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-10-01), 10-K (reporting date: 2005-10-02).


Comparison to Sector (Consumer Services)


Comparison to Industry (Consumer Discretionary)