Guru Fundamental Report for SBUX

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 and favors low volatility stocks with strong momentum and high net payout yields; while SBUX passes the market cap and standard deviation tests, it is neutral on momentum and net payout yield, and ultimately fails the final rank within this strategy.

Analysis

Starbucks Corp (SBUX) has been evaluated by Validea's Multi-Factor Investor model, which is based on Pim van Vliet's strategy favoring low volatility stocks with strong momentum and high net payout yields. According to this model, SBUX, a large-cap growth stock in the Restaurants industry, achieved a rating of 75%. This score is below the 80% threshold that typically indicates some interest from the strategy. While SBUX passed the model's tests for Market Cap and Standard Deviation, aligning with the low volatility preference, it received neutral ratings for 'Twelve Minus One Momentum' and 'Net Payout Yield'. Critically, SBUX ultimately 'FAILS' the final rank within this specific investment strategy, indicating it does not meet the comprehensive criteria despite its positive low-volatility attributes. The per-ticker sentiment score for SBUX of -0.4 further underscores a cautious assessment from this particular quantitative framework, highlighting that its profile does not sufficiently align with the combined requirements for momentum and yield sought by this conservative factor investing approach.

Key Decisions for Investors

• Investors employing Pim van Vliet's multi-factor, low-risk strategy should note SBUX's 75% score and ultimate 'FAIL' on the final rank, suggesting the stock does not currently meet the stringent criteria of this specific model.
• The neutral ratings on 'Twelve Minus One Momentum' and 'Net Payout Yield' are key weaknesses identified by this strategy; therefore, investors who heavily weight these factors might find SBUX less appealing based on this analysis.
• Despite SBUX exhibiting favorable low volatility characteristics by passing market cap and standard deviation tests, its overall profile is deemed insufficient by this quantitative screen due to its performance on momentum and yield metrics, warranting consideration for those strictly following this investment philosophy.