SPROUTS FARMERS MARKET INC (SFM) Fundamental Analysis & Valuation

NASDAQ:SFM • US85208M1027

Current stock price

77.13 USD
-0.13 (-0.17%)
At close:
77.6185 USD
+0.49 (+0.63%)
After Hours:

This SFM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. SFM Profitability Analysis

1.1 Basic Checks

  • SFM had positive earnings in the past year.
  • In the past year SFM had a positive cash flow from operations.
  • SFM had positive earnings in each of the past 5 years.
  • In the past 5 years SFM always reported a positive cash flow from operatings.
SFM Yearly Net Income VS EBIT VS OCF VS FCFSFM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • SFM's Return On Assets of 12.59% is amongst the best of the industry. SFM outperforms 92.11% of its industry peers.
  • The Return On Equity of SFM (37.32%) is better than 92.11% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.90%, SFM belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SFM is significantly below the industry average of 34.56%.
  • The last Return On Invested Capital (15.90%) for SFM is above the 3 year average (13.23%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.59%
ROE 37.32%
ROIC 15.9%
ROA(3y)10.28%
ROA(5y)9.54%
ROE(3y)29.55%
ROE(5y)27.81%
ROIC(3y)13.23%
ROIC(5y)12.25%
SFM Yearly ROA, ROE, ROICSFM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.95%, SFM belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
  • SFM's Profit Margin has improved in the last couple of years.
  • The Operating Margin of SFM (7.86%) is better than 89.47% of its industry peers.
  • In the last couple of years the Operating Margin of SFM has grown nicely.
  • SFM's Gross Margin of 38.80% is amongst the best of the industry. SFM outperforms 86.84% of its industry peers.
  • In the last couple of years the Gross Margin of SFM has remained more or less at the same level.
Industry RankSector Rank
OM 7.86%
PM (TTM) 5.95%
GM 38.8%
OM growth 3Y10.84%
OM growth 5Y5.36%
PM growth 3Y13.39%
PM growth 5Y6%
GM growth 3Y1.89%
GM growth 5Y1.07%
SFM Yearly Profit, Operating, Gross MarginsSFM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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7

2. SFM Health Analysis

2.1 Basic Checks

  • SFM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, SFM has less shares outstanding
  • SFM has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for SFM is higher compared to a year ago.
SFM Yearly Shares OutstandingSFM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
SFM Yearly Total Debt VS Total AssetsSFM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 4.43 indicates that SFM is not in any danger for bankruptcy at the moment.
  • SFM's Altman-Z score of 4.43 is fine compared to the rest of the industry. SFM outperforms 60.53% of its industry peers.
  • SFM has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.18, SFM belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
  • SFM has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • With an excellent Debt to Equity ratio value of 0.06, SFM belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.18
Altman-Z 4.43
ROIC/WACC1.78
WACC8.95%
SFM Yearly LT Debt VS Equity VS FCFSFM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.3 Liquidity

  • SFM has a Current Ratio of 0.93. This is a bad value and indicates that SFM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SFM's Current ratio of 0.93 is on the low side compared to the rest of the industry. SFM is outperformed by 71.05% of its industry peers.
  • A Quick Ratio of 0.44 indicates that SFM may have some problems paying its short term obligations.
  • The Quick ratio of SFM (0.44) is worse than 68.42% of its industry peers.
  • SFM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.44
SFM Yearly Current Assets VS Current LiabilitesSFM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SFM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 40.96% over the past year.
  • Measured over the past years, SFM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.78% on average per year.
  • SFM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.08%.
  • The Revenue has been growing slightly by 6.36% on average over the past years.
EPS 1Y (TTM)40.96%
EPS 3Y30.41%
EPS 5Y16.78%
EPS Q2Q%16.46%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y11.2%
Revenue growth 5Y6.36%
Sales Q2Q%7.64%

3.2 Future

  • SFM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.87% yearly.
  • The Revenue is expected to grow by 9.22% on average over the next years. This is quite good.
EPS Next Y6.01%
EPS Next 2Y6.46%
EPS Next 3Y8.21%
EPS Next 5Y9.87%
Revenue Next Year7.89%
Revenue Next 2Y7.64%
Revenue Next 3Y8.16%
Revenue Next 5Y9.22%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SFM Yearly Revenue VS EstimatesSFM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
SFM Yearly EPS VS EstimatesSFM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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5

4. SFM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 14.55 indicates a correct valuation of SFM.
  • Based on the Price/Earnings ratio, SFM is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.35. SFM is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 13.73, SFM is valued correctly.
  • 76.32% of the companies in the same industry are more expensive than SFM, based on the Price/Forward Earnings ratio.
  • SFM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.61, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.55
Fwd PE 13.73
SFM Price Earnings VS Forward Price EarningsSFM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 68.42% of the companies in the same industry are more expensive than SFM, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, SFM is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.6
EV/EBITDA 8.4
SFM Per share dataSFM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of SFM may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)0.87
EPS Next 2Y6.46%
EPS Next 3Y8.21%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SFM Dividend Analysis

5.1 Amount

  • SFM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SFM Fundamentals: All Metrics, Ratios and Statistics

SPROUTS FARMERS MARKET INC

NASDAQ:SFM (3/31/2026, 6:12:40 PM)

After market: 77.6185 +0.49 (+0.63%)

77.13

-0.13 (-0.17%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-19
Earnings (Next)04-28
Inst Owners102.44%
Inst Owner Change-1.5%
Ins Owners0.46%
Ins Owner Change12.09%
Market Cap7.29B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts74.29
Price Target96.65 (25.31%)
Short Float %11.67%
Short Ratio3.6
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.14%
Min EPS beat(2)2.79%
Max EPS beat(2)3.49%
EPS beat(4)4
Avg EPS beat(4)7.45%
Min EPS beat(4)2.79%
Max EPS beat(4)15.57%
EPS beat(8)8
Avg EPS beat(8)10.32%
EPS beat(12)12
Avg EPS beat(12)9.87%
EPS beat(16)16
Avg EPS beat(16)10.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.21%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.26%
Revenue beat(8)6
Avg Revenue beat(8)0.63%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)0.17%
PT rev (1m)-0.7%
PT rev (3m)-20.99%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-8.11%
EPS NY rev (1m)-3.57%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-1.8%
Valuation
Industry RankSector Rank
PE 14.55
Fwd PE 13.73
P/S 0.83
P/FCF 15.6
P/OCF 10.19
P/B 5.2
P/tB 8.97
EV/EBITDA 8.4
EPS(TTM)5.3
EY6.87%
EPS(NY)5.62
Fwd EY7.28%
FCF(TTM)4.95
FCFY6.41%
OCF(TTM)7.57
OCFY9.81%
SpS93.11
BVpS14.83
TBVpS8.6
PEG (NY)2.42
PEG (5Y)0.87
Graham Number42.06
Profitability
Industry RankSector Rank
ROA 12.59%
ROE 37.32%
ROCE 21.04%
ROIC 15.9%
ROICexc 17.25%
ROICexgc 21.42%
OM 7.86%
PM (TTM) 5.95%
GM 38.8%
FCFM 5.31%
ROA(3y)10.28%
ROA(5y)9.54%
ROE(3y)29.55%
ROE(5y)27.81%
ROIC(3y)13.23%
ROIC(5y)12.25%
ROICexc(3y)14.39%
ROICexc(5y)13.48%
ROICexgc(3y)18.26%
ROICexgc(5y)17.42%
ROCE(3y)17.51%
ROCE(5y)16.22%
ROICexgc growth 3Y9.28%
ROICexgc growth 5Y2.82%
ROICexc growth 3Y11.69%
ROICexc growth 5Y4.54%
OM growth 3Y10.84%
OM growth 5Y5.36%
PM growth 3Y13.39%
PM growth 5Y6%
GM growth 3Y1.89%
GM growth 5Y1.07%
F-Score6
Asset Turnover2.12
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.18
Debt/EBITDA 0.1
Cap/Depr 157.41%
Cap/Sales 2.82%
Interest Coverage 382.38
Cash Conversion 84.29%
Profit Quality 89.32%
Current Ratio 0.93
Quick Ratio 0.44
Altman-Z 4.43
F-Score6
WACC8.95%
ROIC/WACC1.78
Cap/Depr(3y)161.75%
Cap/Depr(5y)132.88%
Cap/Sales(3y)3.03%
Cap/Sales(5y)2.54%
Profit Quality(3y)96.98%
Profit Quality(5y)98.61%
High Growth Momentum
Growth
EPS 1Y (TTM)40.96%
EPS 3Y30.41%
EPS 5Y16.78%
EPS Q2Q%16.46%
EPS Next Y6.01%
EPS Next 2Y6.46%
EPS Next 3Y8.21%
EPS Next 5Y9.87%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y11.2%
Revenue growth 5Y6.36%
Sales Q2Q%7.64%
Revenue Next Year7.89%
Revenue Next 2Y7.64%
Revenue Next 3Y8.16%
Revenue Next 5Y9.22%
EBIT growth 1Y33.7%
EBIT growth 3Y23.26%
EBIT growth 5Y12.07%
EBIT Next Year29.55%
EBIT Next 3Y12.31%
EBIT Next 5Y13.11%
FCF growth 1Y12.75%
FCF growth 3Y23.67%
FCF growth 5Y4.69%
OCF growth 1Y10.97%
OCF growth 3Y24.47%
OCF growth 5Y7.71%

SPROUTS FARMERS MARKET INC / SFM Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SPROUTS FARMERS MARKET INC?

ChartMill assigns a fundamental rating of 7 / 10 to SFM.


Can you provide the valuation status for SPROUTS FARMERS MARKET INC?

ChartMill assigns a valuation rating of 5 / 10 to SPROUTS FARMERS MARKET INC (SFM). This can be considered as Fairly Valued.


Can you provide the profitability details for SPROUTS FARMERS MARKET INC?

SPROUTS FARMERS MARKET INC (SFM) has a profitability rating of 9 / 10.


What are the PE and PB ratios of SPROUTS FARMERS MARKET INC (SFM) stock?

The Price/Earnings (PE) ratio for SPROUTS FARMERS MARKET INC (SFM) is 14.55 and the Price/Book (PB) ratio is 5.2.


What is the earnings growth outlook for SPROUTS FARMERS MARKET INC?

The Earnings per Share (EPS) of SPROUTS FARMERS MARKET INC (SFM) is expected to grow by 6.01% in the next year.