By Tactical Investor:Today we are going to take a look at Starbucks Corporation (SBUX) and examine it both from a fundamental and technical perspective. In general, investors should select a company based on its quarterly earnings growth rates, profitability margins, payout ratio, quarterly revenue growth rates, current ratio, etc. in contrast to focusing only on the yield . We first put Starbucks Corporation through the following selection process to make sure it met with some of our basic requirements before taking a closer look at the company. The company met or exceeded all the listed requirements.
The selection process:
- A positive levered free cash flow
- An interest coverage ratio above 25
- Net income should be trending upwards for the past 3 years
- Cash flow per share should be trending upwards for the past 3 years
- A quarterly earnings growth rate of 15% or higher
- A current ratio of 2.00 or higher
- Annual EPS
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