Reasonable growth and debt and a high ROIC for SPROUTS FARMERS MARKET INC (NASDAQ:SFM).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SPROUTS FARMERS MARKET INC (NASDAQ:SFM) is suited for quality investing. Investors should of course do their own research, but we spotted SPROUTS FARMERS MARKET INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into SPROUTS FARMERS MARKET INC's Quality Metrics.

• SPROUTS FARMERS MARKET INC has achieved substantial revenue growth over the past 5 years, with a 5.6% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 16.01%, SPROUTS FARMERS MARKET INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• SPROUTS FARMERS MARKET INC maintains a healthy Debt/Free Cash Flow Ratio of 0.04, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• The Profit Quality (5-year) of SPROUTS FARMERS MARKET INC stands at 108.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• With a robust 5-year EBIT growth of 10.63%, SPROUTS FARMERS MARKET INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, SPROUTS FARMERS MARKET INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NASDAQ:SFM

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

SFM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making SFM a very profitable company, without any liquidiy or solvency issues. SFM is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, SFM could be worth investigating further for quality investing!.

Our latest full fundamental report of SFM contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.