Stock Research Report for SBUX as of 9/8/11 - Chaikin Power Tools

Page 1

Starbucks Corp (SBUX)

Price: $39.18

Industry: Food/Drug-Retail/Wholesale Chaikin Power Gauge Report | Generated: Thu Sep 08 17:09 EDT 2011 SBUX Starbucks Corp

$39.18

Power Gauge Rating

SBUX - Neutral TM

The Chaikin Power Gauge Rating for SBUX is neutral with very poor financial metrics, strong earnings performance, very bullish price/volume activity and very positive expert opinions.

Financial Metrics

Price and volume activity for SBUX is very bullish which is indicated by its price strength versus the market.

Earnings Performance

SBUX's financial metrics are very poor due to a high price to book value ratio.

Price/Volume Activity

Despite these bullish factors, Chaikin Power Tools has identified a negative trend resulting in a neutral rating.

Expert Opinions

News Sentiment Rating

Neutral SBUX Starbucks Co..

September 07, 2011

TM

Chaikin Sentiment Gauge for SBUX is neutral. Stories concerning SBUX have a balanced or neutral sentiment.

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Very Bearish

LT Debt/Equity Ratio

SBUX's financial metrics are very poor. The company may be overvalued and has relatively low revenue per share.

Price to Book Value

The rank is based on a low long term debt to equity ratio, high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

1.93

Price/Book

6.76

Return on Invest

25.1%

LT Debt/Equity

0.15

Price/Sales

2.73

Return on Equity

28.4%

Earnings Performance

TTM

Earnings Performance Rating

Bullish

Earnings Growth

SBUX's earnings performance has been strong. The company has a stable 5 year earnings trend and has a history of strong earnings growth.

Earnings Surprise

The rank is based on high earnings growth over the past 3-5 years, an upward trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Earnings Trend

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

09/06

09/07

09/08

09/09

09/10

7,786.94

9,411.50

10,383.00

9,774.60

10,707.40

22.26%

20.86%

10.32%

-5.86%

9.54%

$0.71

$0.87

$0.43

$0.52

$1.24

16.39%

22.54%

-50.57%

20.93%

138.46%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.37

$0.37

0.00

Quarterly EPS Yearly EPS Factor

$1.24

$1.52

+0.28

Actual EPS Growth

Est EPS Growth

Change

11.43%

15.88%

+4.45

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$0.34

$0.36

$0.02

1 Qtr Ago

$0.34

$0.34

$0.00

5.88

09/09

$0.09

$0.03

$0.20

$0.20

$0.52

0.00

09/10

$0.32

$0.28

$0.27

$0.37

$1.24

2 Qtr Ago

$0.39

$0.45

3 Qtr Ago

$0.32

$0.37

$0.06

15.38

09/11

$0.45

$0.34

$0.36

-

-

$0.05

15.63

Fiscal Year End Month is September.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Very Bullish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for SBUX is very bullish. SBUX has outperformed the S&P 500 over 26 weeks and has a rising price trend.

Price Trend

The rank for SBUX is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether SBUX is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Volume Activity

Factor

Value

Factor

52 Week High

40.95

% Change Price - 4 Weeks

12.72%

Average Volume 20 Days

8,035,103

52 Week Low

24.78

% Change Price - 24 Weeks

6.79%

Average Volume 90 Days

7,393,697

% Change Price - 4 Wks Rel to S&P

5.39%

Chaikin Money Flow Persistency

% Change Price - 24 Wks Rel to S&P

15.60%

% Change YTD Rel S&P 500

25.00%

Expert Opinions

Value

Factor

Value

58%

Expert Opinions

Very Bullish

Earnings Estimate Revisions

Expert opinions about SBUX are very positive. Shorting of SBUX is low and analysts's opinions on SBUX have been more positive recently.

Short Interest

Insider Activity

The rank for SBUX is based on analysts revising earnings estimates upward, a low short interest ratio, optimistic analyst opinions and price strength of the stock versus the Food/Drug-Retail/Wholesale industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.37 0.51 Current

Current FY

1.52

Analyst Recommendations

7 Days Ago % Change 0.37 0.51

0.00% 0.00%

30 Days Ago % Change 1.52

0.00

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

0

0

0

Curr Yr

0

0

0

0

Next Qtr

0

0

0

0

Next Yr

0

0

0

0

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for SBUX

SBUX's Competitors in Food/Drug-Retail/Wholesale Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

BRIEF: Starbucks pays $75K in suit filed by woman with dwarfism - Aug 18, 2011

SBUX

11.43%

15.88%

10.14%

1.63

25.78

10,707

MCD

3.37%

9.70%

20.56%

1.76

18.08

24,075

BRIEF: Starbucks pays $75K in suit filed by woman with dwarfism - Aug 18, 2011

THI

11.64%

13.50%

23.53%

1.48

21.64

2,573

WEN

41.74%

18.75%

-0.06%

1.93

42.08

3,416

EAT

-7.24%

13.50%

5.11%

0.85

13.72

2,761

YUM

4.05%

11.10%

10.38%

1.70

20.29

11,343

CBRL

-2.19%

10.75%

3.91%

0.88

10.28

-

5.85%

12.23%

6.35%

0.95

13.02

7,500

Company

Power Gauge

DRI

Starbucks Response to Georgia Company Expanded Product Recall - Jul 26, 2011 Starbucks Response to Georgia Company Product Recall - Jul 19, 2011 Starbucks Launches New Iced Refreshment, Lunch and Snacks - Jul 12, 2011

Company Details

Company Profile

STARBUCKS CORP P O BOX 34067 SEATTLE, WA 98134 USA Phone: 2064471575 Fax: 206-682-7570 Website: http://http://www.starbucks.com Full Time Employees: 137,000 Sector: Retail/Wholesale

Starbucks Corporation purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related equipments primarily through its company-operated retail stores. In addition to sales through its company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company. The company's objective is to establish Starbucks as the most recognized and respected brand in the world.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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