Validea Detailed Fundamental Analysis

Starbucks (SBUX) was evaluated by Validea using the Pim van Vliet Multi-Factor Investor model, which prioritizes low volatility, strong momentum, and high net payout yields. SBUX received a 75% rating, falling below the 80% threshold for 'some interest' and ultimately resulting in a 'FAIL' on its final rank within this strategy, despite passing market cap and standard deviation criteria. This indicates that SBUX does not currently align with the investment profile sought by this specific low-volatility factor model.

Analysis

According to a Validea fundamental report, Starbucks Corp (SBUX) was evaluated using the Pim van Vliet Multi-Factor Investor model, which seeks to identify low-volatility stocks that also exhibit strong momentum and high net payout yields. SBUX achieved a score of 75%, falling below the 80% threshold that indicates strategic interest and ultimately resulting in a "FAIL" on its final rank. The analysis reveals a mixed performance against the model's criteria; while SBUX passed on market capitalization and standard deviation—confirming its large-cap, low-volatility profile—it only received a "NEUTRAL" rating for both its "Twelve Minus One Momentum" and "Net Payout Yield". This suggests that despite its favorable risk characteristics, the stock's recent price momentum and shareholder return profile are not strong enough to meet the quantitative requirements of this specific conservative factor strategy.

Key Decisions for Investors

• Investors employing a factor-based strategy similar to Pim van Vliet's should note that SBUX currently fails the screen due to insufficient momentum and net payout yield, despite its qualifying low-volatility profile.
• While the stock's low standard deviation may appeal to risk-averse investors, the neutral momentum rating warrants caution for those prioritizing near-term capital appreciation.
• Traders and portfolio managers should monitor SBUX's shareholder return metrics and price momentum, as an improvement in these areas would be necessary for it to become attractive to quantitative models focused on conservative factor investing.