Money and Finance
This morning I initiated a new position in Starbucks (SBUX) by purchasing 28 shares for $70.51 each. Based on the TTM earnings per share of $0.15, that's a whopping 470 P/E ratio. While I think Starbucks still has a lot of room left to grow, I don't think a 470 P/E ratio is all that cheap. Of course if you go back to their quarter ending September 2013 you'll notice a loss of $1.64 per share that was related to an arbitration between Starbucks and Kraft Foods. Backing out that one time charge due to the arbitration closing and earnings per share for FY 2013 change from $0.01 to $2.26. Starbucks announced Q2 results last week and the growth continued to come with a Q2 record $0.56 per share in earnings, which was a 17% improvement from Q2 2013. Global comp store revenue growth of 6% helped lead to record Q2 revenue of $3.9B.
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- Calling All Starbucks Lovers
Starbucks Corporation (NASDAQ:SBUX) is a Dividend Challenger with 6 consecutive years of dividend growth. The future growth prospects for this company are phenomenal with high-single-digit same-store sales growth and plans to open 1,800 additional stores...
- Starbucks: Buy The Coffee, Wait On The Shares
Starbucks Corporation (NASDAQ:SBUX) has been the top performer in my portfolio compared to the internal rate of return for each position. I initiated a position in the company in April 2014 and have no complaints with the returns. In that time I've...
- Earnings Per Share Or Free Cash Flow: What's The Difference?
The quick and clean method of determining a dividend's safety is by the payout ratio. The payout ratio is calculated by taking the dividends per share and dividing it by the earnings per share (EPS). It's fairly easy and straight-forward and...
- Valuation Of Pepsico Inc. - The Long Case Looks Strong
Last week management of PepsiCo. Inc. (PEP) announced earnings for 4Q and full year 2013. The results were fairly mixed with revenue increasing around 1% over 2012. North American soda consumption continues to be a drag on the growth of the...
- Another Buy
Well the markets continued their difficult start to the year by selling off again to end January. They started off really bad to start the day with the DJIA dropping over 200 points before clawing it's way back to just a 100 point loss and closing...
Money and Finance
Did I Really Buy a Company For 470 Times Earnings?
This morning I initiated a new position in Starbucks (SBUX) by purchasing 28 shares for $70.51 each. Based on the TTM earnings per share of $0.15, that's a whopping 470 P/E ratio. While I think Starbucks still has a lot of room left to grow, I don't think a 470 P/E ratio is all that cheap. Of course if you go back to their quarter ending September 2013 you'll notice a loss of $1.64 per share that was related to an arbitration between Starbucks and Kraft Foods. Backing out that one time charge due to the arbitration closing and earnings per share for FY 2013 change from $0.01 to $2.26. Starbucks announced Q2 results last week and the growth continued to come with a Q2 record $0.56 per share in earnings, which was a 17% improvement from Q2 2013. Global comp store revenue growth of 6% helped lead to record Q2 revenue of $3.9B.
Read more »
- Calling All Starbucks Lovers
Starbucks Corporation (NASDAQ:SBUX) is a Dividend Challenger with 6 consecutive years of dividend growth. The future growth prospects for this company are phenomenal with high-single-digit same-store sales growth and plans to open 1,800 additional stores...
- Starbucks: Buy The Coffee, Wait On The Shares
Starbucks Corporation (NASDAQ:SBUX) has been the top performer in my portfolio compared to the internal rate of return for each position. I initiated a position in the company in April 2014 and have no complaints with the returns. In that time I've...
- Earnings Per Share Or Free Cash Flow: What's The Difference?
The quick and clean method of determining a dividend's safety is by the payout ratio. The payout ratio is calculated by taking the dividends per share and dividing it by the earnings per share (EPS). It's fairly easy and straight-forward and...
- Valuation Of Pepsico Inc. - The Long Case Looks Strong
Last week management of PepsiCo. Inc. (PEP) announced earnings for 4Q and full year 2013. The results were fairly mixed with revenue increasing around 1% over 2012. North American soda consumption continues to be a drag on the growth of the...
- Another Buy
Well the markets continued their difficult start to the year by selling off again to end January. They started off really bad to start the day with the DJIA dropping over 200 points before clawing it's way back to just a 100 point loss and closing...