com.insightguru.giraffe.server.utils.PresentationUtil$PresentationTitle@6926f7ec
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(1) Revenues expected to be well below consensus estimates
Trefis estimates SBUX's FQ4 2021 revenues to be $7.59 Bil, well below the consensus estimate of $8.1 Bil
Estimated Revenues - 2021Q4(E)
Trefis Estimates for Starbucks Revenues:
Expected Change (YoY): 22.4%
The chart to the right highlights trends in Starbucks's Revenues over the last four quarters along with our forecast for FQ4 2021.
Quarterly Revenue Trend
(2) EPS likely to comfortably beat consensus estimates
SBUX's FQ4 2021 earnings per share (EPS) expected to be $1.1 per Trefis analysis, comfortably beating the consensus estimate of $1.0 by 10%
Estimated EPS- 2021Q4(E)
Trefis Estimates for Starbucks EPS:
Expected Change (YoY): 233.3%
The chart to the right highlights trends in SBUX's EPS over the last four quarters along with our forecast for FQ4 2021.
Quarterly EPS Trend
(3) Stock price estimate 14% higher than current market price
Trefis maintains a fair value of $130 for SBUX's stock as opposed to the current market price of roughly $115.
SBUX Stock Price
The Trefis Price Estimate for Starbucks stock represents the fair value for the company's stock over a one-year horizon.
Details about the chances of a rise in SBUX stock in the near term can be found in a separate interactive dashboard.
The chart to the right highlights trends in SBUX's stock price at the end of each of the last four quarters as well as the current stock price.
Stock Price (Quarter End)
#1. Estimating Starbucks's Total Revenues:
Starbucks's Revenues have seen a moderate decrease of -4.9% from around $25 Bil in FY2018 to $24 Bil in FY2020 and we expect it to increase to $30 Bil in FY2022
Total Revenue
A Separate Interactive Dashboard Analysis On Starbucks's Revenues Details How The Company Makes Money.
Comparing Starbucks's Total Revenues with that of its Peers
Starbucks - Total Revenue
McDonald's - Total Revenue
#2. Deriving Starbucks's Net Income:
Starbucks's Net Income has decreased from around $4.5 Bil in FY2018 to $928 Mil in FY2020 and we expect it to increase to $4.1 Bil in FY2022
This change is likely to be led by higher revenues and improved margins.
A Separate Interactive Dashboard Analysis On Starbucks's Margins Highlights The Company's Various Expenses Components In Detail.
Net Income [AxB]
Net Income Margin [A]
Total Revenue [B]
#3. Determining Starbucks's EPS:
Starbucks's EPS has decreased from $3.24 in FY2018 to $0.79 in FY2020 and we expect it to increase to $3.49 in FY2022
The change in EPS can be attributed to an increase in net income and a lower expected share count due to stock repurchases.
EPS [A÷B]
Net Income [A]
Shares Outstanding [B]
#4. Estimating Starbucks's Share Price:
Our Price Estimate of $130 For Starbucks's Stock is based on our Detailed Valuation Model, and implies a 37.3x P/E Multiple on expected FY2022 EPS of $3.49
Trefis Price Estimate [AxB]
EPS [A]
P/E Multiple [B]
Comparing Starbucks's Historical P/E Multiple with that of its Peers
Starbucks P/E Multiple
McDonald's P/E Multiple