SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
78.8 USD
+0.96 (+1.23%)
78.8 USD
0 (0%)
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. SFM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SFM is evaluated to be cheap and growing strongly. This does not happen too often! 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.
In the past 5 years SFM has always been profitable.
SFM had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Invested Capital, with a value of 15.78%, SFM belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
SFM had an Average Return On Invested Capital over the past 3 years of 11.53%. This is above the industry average of 8.75%.
The 3 year average ROIC (11.53%) for SFM is below the current ROIC(15.78%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (5.93%) than 89.74% of its industry peers.
In the last couple of years the Profit Margin of SFM has grown nicely.
With an excellent Operating Margin value of 7.84%, SFM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of SFM has grown nicely.
SFM has a better Gross Margin (38.83%) than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SFM is creating value.
Compared to 1 year ago, SFM has less shares outstanding
The number of shares outstanding for SFM has been reduced compared to 5 years ago.
Compared to 1 year ago, SFM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.71 indicates that SFM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.71, SFM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SFM has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
SFM's Debt to FCF ratio of 0.12 is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that SFM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.04, SFM belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.71 |
ROIC/WACC1.81
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.05 indicates that SFM should not have too much problems paying its short term obligations.
SFM has a Current ratio (1.05) which is comparable to the rest of the industry.
SFM has a Quick Ratio of 1.05. This is a bad value and indicates that SFM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SFM (0.53) 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.
The Revenue has grown by 16.60% in the past year. This is quite good.
The Revenue has been growing slightly by 6.50% on average over the past years.
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
Based on estimates for the next years, SFM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.29% on average per year.
The Revenue is expected to grow by 10.91% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 15.24, the valuation of SFM can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 76.92% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (25.83), we can say SFM is valued slightly cheaper.
SFM is valuated correctly with a Price/Forward Earnings ratio of 13.47.
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.
SFM is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SFM is valued a bit cheaper than the industry average as 64.10% of the companies are valued more expensively.
69.23% of the companies in the same industry are more expensive than SFM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 8.84 |
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.
The excellent profitability rating of SFM 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)0.37
PEG (5Y)0.62
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 |
78.8
+0.96 (+1.23%)
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 Change-0.6%
Ins Owners0.45%
Ins Owner Change-3.36%
Market Cap7.70B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target163.2 (107.11%)
Short Float %7.59%
Short Ratio3.43
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)-13.47%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)0.01%
EPS NY rev (3m)4.51%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.47 | ||
| P/S | 0.89 | ||
| P/FCF | 16.83 | ||
| P/OCF | 10.97 | ||
| P/B | 5.37 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)5.17
EY6.56%
EPS(NY)5.85
Fwd EY7.42%
FCF(TTM)4.68
FCFY5.94%
OCF(TTM)7.19
OCFY9.12%
SpS88.55
BVpS14.68
TBVpS8.64
PEG (NY)0.37
PEG (5Y)0.62
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 | 4.71 |
F-Score7
WACC8.72%
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 15.24 and the Price/Book (PB) ratio is 5.37.