Starbucks Corp., FCFE calculation

US$ in thousands

12 months ended:	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019
Net earnings attributable to Starbucks	3,760,900)	4,124,500)	3,281,600)	4,199,300)	928,300)	3,599,200)
Net (earnings) loss attributable to noncontrolling interests	1,400)	200)	1,800)	1,000)	(3,600)	(4,600)
Net noncash charges	3,382,100)	3,017,400)	3,246,900)	2,290,000)	3,349,500)	(196,300)
Cash provided by (used in) changes in operating assets and liabilities	(1,048,800)	(1,133,400)	(2,133,000)	(501,200)	(2,676,400)	1,648,700)
Net cash provided by operating activities	6,095,600)	6,008,700)	4,397,300)	5,989,100)	1,597,800)	5,047,000)
Additions to property, plant and equipment	(2,777,500)	(2,333,600)	(1,841,300)	(1,470,000)	(1,483,600)	(1,806,600)
Net proceeds from issuance (payments) of commercial paper	—)	(175,000)	175,000)	(296,500)	—)	—)
Net proceeds from issuance of short-term debt	123,800)	114,600)	36,600)	215,100)	1,406,600)	—)
Repayments of short-term debt	(157,500)	(78,800)	(36,600)	(349,800)	(967,700)	—)
Net proceeds from issuance of long-term debt	1,995,300)	1,497,800)	1,498,100)	—)	4,727,600)	1,996,000)
Repayments of long-term debt	(1,825,100)	(1,000,000)	(1,000,000)	(1,250,000)	—)	(350,000)
Free cash flow to equity (FCFE)	3,454,600)	4,033,700)	3,229,100)	2,837,900)	5,280,700)	4,886,400)

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).

Net Cash Provided by Operating Activities: The net cash provided by operating activities exhibited considerable variability over the six-year period analyzed. There was a significant decline from 5,047,000 thousand USD in 2019 to 1,597,800 thousand USD in 2020. This sharp decrease was followed by a substantial recovery in 2021, with cash flow increasing to 5,989,100 thousand USD. The subsequent years showed fluctuations, with a drop to 4,397,300 thousand USD in 2022, then rising again to 6,008,700 thousand USD in 2023, and a slight increase to 6,095,600 thousand USD in 2024. Overall, the data suggests a recovery trend after a notable dip in 2020, stabilizing at relatively high cash flow levels in the last two recorded years.
Free Cash Flow to Equity (FCFE): The free cash flow to equity demonstrates a fluctuating pattern with less volatility compared to operating cash flow. Starting at 4,886,400 thousand USD in 2019, it increased to 5,280,700 thousand USD in 2020, contradicting the operating cash flow decline in the same year. This was followed by a marked decrease to 2,837,900 thousand USD in 2021. Subsequent years saw a moderate improvement to 3,229,100 thousand USD in 2022 and a further increase to 4,033,700 thousand USD in 2023, before dropping to 3,454,600 thousand USD in 2024. These variations suggest that equity-related cash distribution experienced pressures and recovery cycles, with a general downward trend after the peak in 2020.
Comparative Insights: While operating cash flows experienced a sharp drop in 2020, FCFE increased during the same period, indicating possible shifts in working capital, financing activities, or capital expenditures influencing the available equity cash flow differently than operating cash. Post-2020, both metrics appear to align more closely, reflecting recovery and stabilization phases, though FCFE shows more variability and did not return to its previous peak levels by 2024. These trends may imply cautious capital management and reinvestment strategies during recovery years.

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Starbucks Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,136,400,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	3,454,600)
FCFE per share	3.04
Current share price (P)	91.84
Valuation Ratio
P/FCFE	30.21
Benchmarks
P/FCFE, Competitors¹
Airbnb Inc.	18.68
Booking Holdings Inc.	15.95
Chipotle Mexican Grill Inc.	47.74
McDonald’s Corp.	30.94
P/FCFE, Sector
Consumer Services	23.56
P/FCFE, Industry
Consumer Discretionary	36.34

Based on: 10-K (reporting date: 2024-09-29).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Starbucks Corp., historical P/FCFE calculation, comparison to benchmarks

	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019
No. shares of common stock outstanding¹	1,133,800,000	1,136,700,000	1,147,800,000	1,173,200,000	1,173,700,000	1,181,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	3,454,600)	4,033,700)	3,229,100)	2,837,900)	5,280,700)	4,886,400)
FCFE per share³	3.05	3.55	2.81	2.42	4.50	4.14
Share price^1, 4	98.26	105.57	97.95	110.78	93.53	84.21
Valuation Ratio
P/FCFE⁵	32.25	29.75	34.82	45.80	20.79	20.35
Benchmarks
P/FCFE, Competitors⁶
Airbnb Inc.	19.83	25.72	24.76	54.32	99.90	—
Booking Holdings Inc.	14.42	15.89	11.52	69.03	37.59	—
Chipotle Mexican Grill Inc.	50.89	58.77	52.59	51.88	149.64	—
McDonald’s Corp.	33.63	20.85	28.85	30.21	22.96	—
P/FCFE, Sector
Consumer Services	24.19	22.99	23.78	42.78	32.80	—
P/FCFE, Industry
Consumer Discretionary	39.60	30.84	36.19	82.92	32.04	—

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,454,600,000 ÷ 1,133,800,000 = 3.05

⁴ Closing price as at the filing date of Starbucks Corp. Annual Report.

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 98.26 ÷ 3.05 = 32.25

⁶ Click competitor name to see calculations.

Share Price Trend: The share price exhibited an overall upward trend from 2019 to 2021, increasing from $84.21 to $110.78. However, following this peak, there was a decline in 2022 to $97.95. The price showed some recovery in 2023, reaching $105.57, but experienced another decrease in 2024 to $98.26. This indicates some volatility and corrections after the initial growth period.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share increased from $4.14 in 2019 to $4.50 in 2020, followed by a significant drop to $2.42 in 2021. Subsequent years showed a moderate recovery with values of $2.81 in 2022, $3.55 in 2023, and a slight decline to $3.05 in 2024. The initial decline in 2021 suggests a challenging period for the company's cash generation relative to equity, with a gradual improvement thereafter but not reaching prior highs.
Price to FCFE (P/FCFE) Ratio: The P/FCFE ratio was relatively stable around 20 in 2019 and 2020, then surged dramatically to 45.8 in 2021. Following the peak, the ratio decreased but remained elevated compared to earlier years: 34.82 in 2022, 29.75 in 2023, and 32.25 in 2024. This pattern reflects a substantial increase in share price relative to free cash flow per share in 2021, indicating market expectations or valuation adjustments, followed by a partial normalization.
Combined Interpretation: The data reveals that while the share price increased significantly by 2021, the corresponding free cash flow to equity per share decreased sharply, leading to a spike in the P/FCFE ratio. This suggests heightened investor optimism or valuation multiples during that period, despite weaker cash flow fundamentals. Subsequent years show a partial return toward earlier levels, though the valuation multiples remain elevated, signaling sustained cautious optimism from the market or structural changes affecting cash flow generation and investor perceptions.

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Starbucks Corp. (NASDAQ:SBUX)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical