SBUX Quantitative Stock Analysis

Validea's guru fundamental report indicates that STARBUCKS CORP (SBUX) receives a 75% rating based on their Multi-Factor Investor model, which is based on the strategy of Pim van Vliet that seeks low volatility stocks with strong momentum and high net payout yields; however, the final rank for SBUX failed based on this strategy despite passing tests for market cap and standard deviation.

Analysis

Starbucks Corp (SBUX) has been assessed by Validea using its Multi-Factor Investor model, derived from Pim van Vliet's strategy that targets low volatility stocks exhibiting strong momentum and high net payout yields. SBUX scored 75% under this model, which is below the 80% threshold generally indicating strategic interest and significantly under the 90% mark for strong interest. The analysis reveals that SBUX passed the criteria for market capitalization and standard deviation, consistent with the model's emphasis on low volatility. However, it achieved only a 'NEUTRAL' rating for 'TWELVE MINUS ONE MOMENTUM' and 'NET PAYOUT YIELD'. Consequently, despite its low volatility profile, SBUX ultimately received a 'FAIL' on its final rank according to this specific factor-based investment strategy. The overall sentiment for SBUX is slightly negative (-0.1), reflecting the mixed assessment from this particular model.

Key Decisions for Investors

• Investors strictly adhering to Pim van Vliet's Multi-Factor model should note SBUX's 'FAIL' rank, suggesting it does not currently meet the desired combination of low volatility, strong momentum, and high net payout yield.
• Despite SBUX's favorable low volatility characteristics, indicated by passing standard deviation and market cap tests, its neutral performance on momentum and net payout yield are significant weaknesses when evaluated against this specific investment strategy.
• Consider SBUX a hold or potentially underweight for portfolios narrowly focused on this multi-factor approach; closely monitor for any significant improvements in its momentum and net payout yield metrics before reconsidering its alignment with the strategy.