SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM - Nasdaq - US85208M1027 - Common Stock - Currency: USD
Taking everything into account, SFM scores 7 out of 10 in our fundamental rating. SFM was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. SFM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SFM shows excellent growth, but is valued quite expensive already. With these ratings, SFM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year SFM was profitable.
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
SFM has a better Return On Assets (11.94%) than 97.50% of its industry peers.
SFM has a better Return On Equity (34.67%) than 92.50% of its industry peers.
The Return On Invested Capital of SFM (15.09%) is better than 97.50% of its industry peers.
SFM had an Average Return On Invested Capital over the past 3 years of 11.53%. This is above the industry average of 8.23%.
The last Return On Invested Capital (15.09%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 34.67% | ||
| ROIC | 15.09% |
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
SFM has a Profit Margin of 5.53%. This is amongst the best in the industry. SFM outperforms 92.50% of its industry peers.
In the last couple of years the Profit Margin of SFM has grown nicely.
The Operating Margin of SFM (7.37%) is better than 92.50% of its industry peers.
SFM's Operating Margin has improved in the last couple of years.
SFM has a Gross Margin of 38.47%. This is amongst the best in the industry. SFM outperforms 85.00% of its industry peers.
In the last couple of years the Gross Margin of SFM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.37% | ||
| PM (TTM) | 5.53% | ||
| GM | 38.47% |
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) just above the Cost of Capital (WACC), SFM 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.
SFM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.65 indicates that SFM is not in any danger for bankruptcy at the moment.
SFM's Altman-Z score of 6.65 is amongst the best of the industry. SFM outperforms 87.50% of its industry peers.
SFM has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.02, SFM belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that SFM is not too dependend on debt financing.
SFM's Debt to Equity ratio of 0.01 is amongst the best of the industry. SFM outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.65 |
ROIC/WACC1.68
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.95 indicates that SFM may have some problems paying its short term obligations.
SFM's Current ratio of 0.95 is on the low side compared to the rest of the industry. SFM is outperformed by 70.00% of its industry peers.
A Quick Ratio of 0.51 indicates that SFM may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, SFM perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
The current and quick ratio evaluation for SFM is rather negative, while it does have 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 | 0.95 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.83% over the past year.
SFM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.64% yearly.
Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 15.51% in the last year.
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)49.83%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%61.61%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%18.72%
3.2 Future
The Earnings Per Share is expected to grow by 17.19% on average over the next years. This is quite good.
Based on estimates for the next years, SFM will show a quite strong growth in Revenue. The Revenue will grow by 10.98% on average per year.
EPS Next Y36.91%
EPS Next 2Y24.13%
EPS Next 3Y19.88%
EPS Next 5Y17.19%
Revenue Next Year14.2%
Revenue Next 2Y12.61%
Revenue Next 3Y11.55%
Revenue Next 5Y10.98%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SFM is valuated quite expensively with a Price/Earnings ratio of 35.89.
62.50% of the companies in the same industry are cheaper than SFM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (27.30), we can say SFM is valued slightly more expensively.
SFM is valuated quite expensively with a Price/Forward Earnings ratio of 27.56.
SFM's Price/Forward Earnings is on the same level as the industry average.
SFM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 27.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SFM is valued a bit more expensive than 75.00% of the companies in the same industry.
SFM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.16 | ||
| EV/EBITDA | 20.68 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SFM has an outstanding profitability rating, which may justify a higher PE ratio.
SFM's earnings are expected to grow with 19.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.46
EPS Next 2Y24.13%
EPS Next 3Y19.88%
5. Dividend
5.1 Amount
SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
159.7
+0.98 (+0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change2.58%
Market Cap15.63B
Analysts71.58
Price Target190.18 (19.09%)
Short Float %7.46%
Short Ratio3.47
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)11.1%
Min EPS beat(2)6.62%
Max EPS beat(2)15.57%
EPS beat(4)4
Avg EPS beat(4)14.48%
Min EPS beat(4)6.62%
Max EPS beat(4)18.87%
EPS beat(8)8
Avg EPS beat(8)11.21%
EPS beat(12)12
Avg EPS beat(12)12.15%
EPS beat(16)16
Avg EPS beat(16)13.53%
Revenue beat(2)2
Avg Revenue beat(2)0.66%
Min Revenue beat(2)0.6%
Max Revenue beat(2)0.72%
Revenue beat(4)4
Avg Revenue beat(4)1.52%
Min Revenue beat(4)0.6%
Max Revenue beat(4)2.68%
Revenue beat(8)6
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0.74%
PT rev (3m)5.72%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)7.31%
EPS NY rev (1m)0%
EPS NY rev (3m)9.11%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 27.56 | ||
| P/S | 1.94 | ||
| P/FCF | 32.16 | ||
| P/OCF | 21.57 | ||
| P/B | 12.13 | ||
| P/tB | 22.39 | ||
| EV/EBITDA | 20.68 |
EPS(TTM)4.45
EY2.79%
EPS(NY)5.79
Fwd EY3.63%
FCF(TTM)4.97
FCFY3.11%
OCF(TTM)7.4
OCFY4.64%
SpS82.48
BVpS13.16
TBVpS7.13
PEG (NY)0.97
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 34.67% | ||
| ROCE | 20.06% | ||
| ROIC | 15.09% | ||
| ROICexc | 16.7% | ||
| ROICexgc | 21.41% | ||
| OM | 7.37% | ||
| PM (TTM) | 5.53% | ||
| GM | 38.47% | ||
| FCFM | 6.02% |
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%
ROICexcg growth 3Y5.31%
ROICexcg 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-Score8
Asset Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 167.49% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 174.83 | ||
| Cash Conversion | 98.24% | ||
| Profit Quality | 108.84% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 6.65 |
F-Score8
WACC8.97%
ROIC/WACC1.68
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)49.83%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%61.61%
EPS Next Y36.91%
EPS Next 2Y24.13%
EPS Next 3Y19.88%
EPS Next 5Y17.19%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%18.72%
Revenue Next Year14.2%
Revenue Next 2Y12.61%
Revenue Next 3Y11.55%
Revenue Next 5Y10.98%
EBIT growth 1Y45.13%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year63.76%
EBIT Next 3Y26.28%
EBIT Next 5Y19.96%
FCF growth 1Y91.11%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y82.02%
OCF growth 3Y20.93%
OCF growth 5Y12.68%