SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
81.14 USD
-1.44 (-1.74%)
81.99 USD
+0.85 (+1.05%)
SFM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 39 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 is growing strongly while it also seems undervalued. This is an interesting combination This makes SFM very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year SFM was profitable.
SFM had a positive operating cash flow in the past year.
Each year in the past 5 years SFM has been profitable.
Each year in the past 5 years SFM had a positive operating cash flow.
1.2 Ratios
SFM's Return On Assets of 12.79% is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
With an excellent Return On Equity value of 35.79%, SFM belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
The Return On Invested Capital of SFM (15.78%) is better than 94.87% 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 8.72%.
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
SFM's Profit Margin of 5.93% is amongst the best of the industry. SFM outperforms 89.74% of its industry peers.
In the last couple of years the Profit Margin of SFM has grown nicely.
Looking at the Operating Margin, with a value of 7.84%, SFM belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
SFM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 38.83%, SFM belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Gross Margin of SFM has grown nicely.
| 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.
Compared to 1 year ago, SFM has less shares outstanding
Compared to 5 years ago, SFM has less shares outstanding
The debt/assets ratio for SFM has been reduced compared to a year ago.
2.2 Solvency
SFM has an Altman-Z score of 4.78. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM has a better Altman-Z score (4.78) than 69.23% 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.
The Debt to FCF ratio of SFM (0.12) is better than 94.87% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that SFM is not too dependend on debt financing.
SFM has a better Debt to Equity ratio (0.04) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.81
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.05 indicates that SFM should not have too much problems paying its short term obligations.
The Current ratio of SFM (1.05) is comparable to the rest of the industry.
A Quick Ratio of 0.53 indicates that SFM may have some problems paying its short term obligations.
SFM has a Quick ratio of 0.53. This is comparable to the rest of the industry: SFM outperforms 46.15% 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 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.
The Earnings Per Share has been growing by 24.64% on average over the past years. This is a very strong growth
SFM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.60%.
SFM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.50% yearly.
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
SFM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.29% yearly.
Based on estimates for the next years, SFM will show a quite strong growth in Revenue. The Revenue will grow by 10.91% on average per year.
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
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.
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
The Price/Earnings ratio is 15.69, which indicates a correct valuation of SFM.
Based on the Price/Earnings ratio, SFM is valued a bit cheaper than 74.36% of the companies in the same industry.
SFM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 13.87, which indicates a correct valuation of SFM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 74.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, SFM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 66.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 9.23 |
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.
A more expensive valuation may be justified as SFM's earnings are expected to grow with 20.61% in the coming years.
PEG (NY)0.38
PEG (5Y)0.64
EPS Next 2Y24.73%
EPS Next 3Y20.61%
5. Dividend
5.1 Amount
SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.14
-1.44 (-1.74%)
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 Cap7.93B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target163.2 (101.13%)
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 | 15.69 | ||
| Fwd PE | 13.87 | ||
| P/S | 0.92 | ||
| P/FCF | 17.33 | ||
| P/OCF | 11.29 | ||
| P/B | 5.53 | ||
| P/tB | 9.39 | ||
| EV/EBITDA | 9.23 |
EPS(TTM)5.17
EY6.37%
EPS(NY)5.85
Fwd EY7.21%
FCF(TTM)4.68
FCFY5.77%
OCF(TTM)7.19
OCFY8.86%
SpS88.55
BVpS14.68
TBVpS8.64
PEG (NY)0.38
PEG (5Y)0.64
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 | 4.78 |
F-Score7
WACC8.74%
ROIC/WACC1.81
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 15.69 and the Price/Book (PB) ratio is 5.53.