SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
82.58 USD
+0.79 (+0.97%)
82.59 USD
+0.01 (+0.01%)
Overall SFM gets a fundamental rating of 7 out of 10. We evaluated SFM against 39 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, SFM could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
SFM had positive earnings in the past year.
In the past year SFM had a positive cash flow from operations.
Each year in the past 5 years SFM has been profitable.
In the past 5 years SFM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SFM (12.79%) is better than 94.87% of its industry peers.
Looking at the Return On Equity, with a value of 35.79%, SFM belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
SFM has a Return On Invested Capital of 15.78%. This is amongst the best in the industry. SFM outperforms 94.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SFM is above the industry average of 8.72%.
The last Return On Invested Capital (15.78%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 35.79% | ||
| ROIC | 15.78% |
ROA(3y)8.91%
ROA(5y)9.07%
ROE(3y)25.43%
ROE(5y)26.87%
ROIC(3y)11.53%
ROIC(5y)11.58%
1.3 Margins
Looking at the Profit Margin, with a value of 5.93%, SFM belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
SFM's Profit Margin has improved in the last couple of years.
The Operating Margin of SFM (7.84%) is better than 92.31% of its industry peers.
SFM's Operating Margin has improved in the last couple of years.
SFM's Gross Margin of 38.83% is amongst the best of the industry. SFM outperforms 84.62% of its industry peers.
SFM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.84% | ||
| PM (TTM) | 5.93% | ||
| GM | 38.83% |
OM growth 3Y6.47%
OM growth 5Y10.94%
PM growth 3Y7.19%
PM growth 5Y13.18%
GM growth 3Y1.71%
GM growth 5Y2.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SFM is creating value.
SFM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SFM has been reduced compared to 5 years ago.
SFM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.81 indicates that SFM is not in any danger for bankruptcy at the moment.
SFM's Altman-Z score of 4.81 is fine compared to the rest of the industry. SFM outperforms 71.79% of its industry peers.
The Debt to FCF ratio of SFM is 0.12, which is an excellent value as it means it would take SFM, only 0.12 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.12, SFM belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that SFM is not too dependend on debt financing.
The Debt to Equity ratio of SFM (0.04) is better than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.81 |
ROIC/WACC1.8
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.05 indicates that SFM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, SFM is in line with its industry, outperforming 48.72% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that SFM may have some problems paying its short term obligations.
SFM has a Quick ratio (0.53) which is comparable to the rest of the industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.42% over the past year.
Measured over the past years, SFM shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.64% on average per year.
SFM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.60%.
Measured over the past years, SFM shows a small growth in Revenue. The Revenue has been growing by 6.50% on average per year.
EPS 1Y (TTM)49.42%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%34.07%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%13.09%
3.2 Future
The Earnings Per Share is expected to grow by 16.29% on average over the next years. This is quite good.
SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.91% yearly.
EPS Next Y41.53%
EPS Next 2Y24.73%
EPS Next 3Y20.61%
EPS Next 5Y16.29%
Revenue Next Year14.88%
Revenue Next 2Y12.54%
Revenue Next 3Y11.31%
Revenue Next 5Y10.91%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.97, SFM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 74.36% of the companies listed in the same industry.
SFM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.56.
SFM is valuated correctly with a Price/Forward Earnings ratio of 14.12.
74.36% of the companies in the same industry are more expensive than SFM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.62. SFM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SFM is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SFM is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.64 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
SFM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of SFM may justify a higher PE ratio.
SFM's earnings are expected to grow with 20.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)0.65
EPS Next 2Y24.73%
EPS Next 3Y20.61%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.58
+0.79 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.26%
Inst Owner Change1.5%
Ins Owners0.45%
Ins Owner Change-6.79%
Market Cap8.07B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target163.2 (97.63%)
Short Float %8.29%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)5.72%
Min EPS beat(2)3.49%
Max EPS beat(2)7.94%
EPS beat(4)4
Avg EPS beat(4)8.41%
Min EPS beat(4)3.49%
Max EPS beat(4)15.57%
EPS beat(8)8
Avg EPS beat(8)10.9%
EPS beat(12)12
Avg EPS beat(12)10.69%
EPS beat(16)16
Avg EPS beat(16)10.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.26%
Revenue beat(8)6
Avg Revenue beat(8)0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.47%
Revenue beat(16)8
Avg Revenue beat(16)0.29%
PT rev (1m)-13.51%
PT rev (3m)-13.51%
EPS NQ rev (1m)-11.09%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-3.16%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 14.12 | ||
| P/S | 0.93 | ||
| P/FCF | 17.64 | ||
| P/OCF | 11.49 | ||
| P/B | 5.63 | ||
| P/tB | 9.56 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)5.17
EY6.26%
EPS(NY)5.85
Fwd EY7.08%
FCF(TTM)4.68
FCFY5.67%
OCF(TTM)7.19
OCFY8.7%
SpS88.55
BVpS14.68
TBVpS8.64
PEG (NY)0.38
PEG (5Y)0.65
Graham Number41.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 35.79% | ||
| ROCE | 20.99% | ||
| ROIC | 15.78% | ||
| ROICexc | 17.53% | ||
| ROICexgc | 21.99% | ||
| OM | 7.84% | ||
| PM (TTM) | 5.93% | ||
| GM | 38.83% | ||
| FCFM | 5.29% |
ROA(3y)8.91%
ROA(5y)9.07%
ROE(3y)25.43%
ROE(5y)26.87%
ROIC(3y)11.53%
ROIC(5y)11.58%
ROICexc(3y)12.71%
ROICexc(5y)12.73%
ROICexgc(3y)16.51%
ROICexgc(5y)16.78%
ROCE(3y)15.33%
ROCE(5y)15.4%
ROICexgc growth 3Y5.31%
ROICexgc growth 5Y12.76%
ROICexc growth 3Y7.03%
ROICexc growth 5Y13.66%
OM growth 3Y6.47%
OM growth 5Y10.94%
PM growth 3Y7.19%
PM growth 5Y13.18%
GM growth 3Y1.71%
GM growth 5Y2.53%
F-Score7
Asset Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 160.73% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 401.75 | ||
| Cash Conversion | 84.57% | ||
| Profit Quality | 89.12% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 4.81 |
F-Score7
WACC8.75%
ROIC/WACC1.8
Cap/Depr(3y)141.81%
Cap/Depr(5y)120.69%
Cap/Sales(3y)2.74%
Cap/Sales(5y)2.36%
Profit Quality(3y)98.77%
Profit Quality(5y)106.63%
High Growth Momentum
Growth
EPS 1Y (TTM)49.42%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%34.07%
EPS Next Y41.53%
EPS Next 2Y24.73%
EPS Next 3Y20.61%
EPS Next 5Y16.29%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%13.09%
Revenue Next Year14.88%
Revenue Next 2Y12.54%
Revenue Next 3Y11.31%
Revenue Next 5Y10.91%
EBIT growth 1Y40.74%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year70.05%
EBIT Next 3Y29.2%
EBIT Next 5Y19.36%
FCF growth 1Y72.54%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y48.33%
OCF growth 3Y20.93%
OCF growth 5Y12.68%
SPROUTS FARMERS MARKET INC / SFM FAQ
Can you provide the ChartMill fundamental rating for SPROUTS FARMERS MARKET INC?
ChartMill assigns a fundamental rating of 7 / 10 to SFM.
What is the valuation status of SPROUTS FARMERS MARKET INC (SFM) stock?
ChartMill assigns a valuation rating of 7 / 10 to SPROUTS FARMERS MARKET INC (SFM). This can be considered as Undervalued.
How profitable is SPROUTS FARMERS MARKET INC (SFM) stock?
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 15.97 and the Price/Book (PB) ratio is 5.63.