Switch to:
GuruFocus has detected 3 Warning Signs with Starbucks Corp $FRA:SRB.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Starbucks Corp (FRA:SRB)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Starbucks Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

FRA:SRB' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 8

3
8

During the past 13 years, the highest Piotroski F-Score of Starbucks Corp was 8. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Net Income was 671.146315415 + 713.623808251 + 712.674187127 + 610.378681627 = €2,708 Mil.
Cash Flow from Operations was 962.442150231 + 1165.64198521 + 1417.85951275 + 414.492753623 = €3,960 Mil.
Revenue was 4661.80135279 + 5088.83542725 + 5434.54355863 + 4949.97662459 = €20,135 Mil.
Gross Profit was 2828.14168743 + 3080.28156464 + 3258.98189402 + 2947.91958859 = €12,115 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(11242.2772989 + 12311.498754 + 12767.9764769 + 13287.7997914 + 13303.3193081) / 5 = €12582.5743259 Mil.
Total Assets at the begining of this year (Mar16) was €11,242 Mil.
Long-Term Debt was €3,686 Mil.
Total Current Assets was €4,600 Mil.
Total Current Liabilities was €3,740 Mil.
Net Income was 558.40684309 + 581.395348837 + 631.231065822 + 516.433189655 = €2,287 Mil.

Revenue was 4349.28272298 + 4379.22124209 + 4932.98448545 + 4483.8362069 = €18,145 Mil.
Gross Profit was 2608.30437494 + 2612.67040898 + 2926.00752777 + 2678.60991379 = €10,826 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(11263.6976809 + 11466.4528201 + 11063.2629422 + 11882.4015423 + 11242.2772989) / 5 = €11383.6184569 Mil.
Total Assets at the begining of last year (Mar15) was €11,264 Mil.
Long-Term Debt was €2,198 Mil.
Total Current Assets was €3,487 Mil.
Total Current Liabilities was €3,907 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Starbucks Corp's current net income (TTM) was 2,708. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Starbucks Corp's current cash flow from operations (TTM) was 3,960. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Mar16)
=2707.82299242/11242.2772989
=0.24086072

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=2287.4664474/11263.6976809
=0.20308308

Starbucks Corp's return on assets of this year was 0.24086072. Starbucks Corp's return on assets of last year was 0.20308308. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Starbucks Corp's current net income (TTM) was 2,708. Starbucks Corp's current cash flow from operations (TTM) was 3,960. ==> 3,960 > 2,708 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar17)=Long-Term Debt/Average Total Assets from Mar16 to Mar17
=3686.30201029/12582.5743259
=0.29296882

Gearing (Last Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=2197.91666667/11383.6184569
=0.19307716

Starbucks Corp's gearing of this year was 0.29296882. Starbucks Corp's gearing of last year was 0.19307716. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Mar17)=Total Current Assets/Total Current Liabilities
=4599.71949509/3740.15895278
=1.22981925

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=3487.33836207/3907.32758621
=0.89251241

Starbucks Corp's current ratio of this year was 1.22981925. Starbucks Corp's current ratio of last year was 0.89251241. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Starbucks Corp's number of shares in issue this year was 1464.8. Starbucks Corp's number of shares in issue last year was 1486.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=12115.3247347/20135.1569633
=0.60170004

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=10825.5922255/18145.3246574
=0.59660504

Starbucks Corp's gross margin of this year was 0.60170004. Starbucks Corp's gross margin of last year was 0.59660504. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Mar16)
=20135.1569633/11242.2772989
=1.7910212

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=18145.3246574/11263.6976809
=1.61095629

Starbucks Corp's asset turnover of this year was 1.7910212. Starbucks Corp's asset turnover of last year was 1.61095629. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Starbucks Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Starbucks Corp Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 0011110110
Question 4 1111111011
Question 5 0111110010
Question 6 0111110100
Question 7 1100001111
Question 8 1111001111
Question 9 0001010010
F-score 5778675685

Starbucks Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Question 1 1111111111
Question 2 1111111111
Question 3 1111000001
Question 4 1111111111
Question 5 1001110000
Question 6 1010000001
Question 7 1111111111
Question 8 1111111111
Question 9 0111100001
F-score 8788765558
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK