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Starbucks Corporation

SBUX Consumer Cyclical Unknown Updated July 31, 2026
$105.23
52W $77.99 – $109.23
49/100
$119.98B
60.5
0.97
AI Committee Verdict
Watch
Conviction: Contested · 57% agreement · 7 analysts
+3.5%
-10.9%
0.32:1
Contested

Is SBUX Bullish or Bearish?

Mixed. Innellis AI committee rates Starbucks Corporation (SBUX) Watch with a composite score of 49/100 , based on 7 analysts with 57% agreement. Last updated July 31, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +10.82 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -9.18 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Technical Analyst sees a compelling case — price structure making higher highs and higher lows. Risk Analyst remains cautious — high leverage (debt-to-equity 8.07) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 115.7% shows genuine earnings power backing the valuation — Value
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Price structure making higher highs and higher lows — Technical
  • Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
  • Market regime is bullish (Bull market -- normal position sizing) — Macro
Bear Case
  • P/E of 60.4 is expensive by classic value standards — Value
  • Price-to-book of 64.1x prices in significant intangible value — Value
  • Debt-to-equity of 8.07 adds balance-sheet risk to the value case — Value
  • EPS declining -25.0% YoY despite any revenue growth — Growth
  • MACD histogram negative -- bearish momentum — Technical
  • High leverage (debt-to-equity 8.07) amplifies downside in a stress scenario — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of July 31, 2026
Overall Committee Score
49/100
Agreement
57%
Analysts
7
Conviction
Contested
Sector Rank
Top 80%
of 124 Consumer Cyclical peers
Value Analyst bearish
40 / 100 · High confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
+ ROE of 115.7% shows genuine earnings power backing the valuation
− P/E of 60.4 is expensive by classic value standards
Growth Analyst neutral
48 / 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− EPS declining -25.0% YoY despite any revenue growth
Technical Analyst bullish
61 / 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− MACD histogram negative -- bearish momentum
Risk Analyst bearish
32 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 8.07) amplifies downside in a stress scenario
Macro Analyst neutral
58 / 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst neutral
60 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
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Investment Thesis Evolution

Committee score moved marginally from 50.6 to 49.2.

Analyst-level changes:
  • Growth Analyst: +1 bearish signal(s).
  • Macro Analyst: stance bullish->neutral; score 65->58 (-8); +1 bullish signal(s).
  • News Analyst: stance bullish->neutral.
  • Portfolio Manager: +2 bearish signal(s).
  • Value Analyst: +1 bearish signal(s).

Comparing 2026-07-30 to 2026-07-31 (1 day apart).

Technical Analysis

RSI (14)
55.9
Neutral
MACD Histogram
-0.136
Bearish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Mixed
Support
$93.76
Resistance
$108.86
Bollinger %B
0.57
Inside Bands
Price vs Moving Averages
EMA 9
$104.58 Above
EMA 21
$104.27 Above
EMA 50
$103.01 Above
EMA 200
$97.31 Above

Fundamental Analysis

Valuation
67
Growth
84
Profitability
0
Financial Health
50
Cash Flow
37
Valuation
P/E Ratio 60.5×
P/B Ratio -15.69×
PEG Ratio -2.42
Dividend Yield 0.02%
52W High $109.23
52W Low $77.99
Quality & Growth
ROE -22.9%
ROA 5.8%
Gross Margin 31.8%
Operating Margin 9.4%
Revenue Growth YoY
Debt / Equity -2.92
AI Fundamental Assessment
P/E ratio of 60.5 (rich relative to a 15-40x range); Price-to-book of -15.7x; PEG ratio of -2.4 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -0.2%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.3%; Current ratio of 0.76 (tight short-term liquidity); Debt-to-equity of -2.92; Free cash flow margin of 0.7% (thin cash generation); Free cash flow per share is positive (4.38); Most recent quarter beat estimates by 26.1%; 2 consecutive earnings beats; EPS growth accelerating (-10.7% -> +70.0% QoQ); Average YoY EPS growth of 39.3%; Analyst estimates rising over recent quarters
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📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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