SPROUTS FARMERS MARKET INC (SFM) Fundamental Analysis & Valuation

NASDAQ:SFM • US85208M1027

Current stock price

77.17 USD
+1.15 (+1.51%)
At close:
77.17 USD
0 (0%)
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

  • In the past year SFM was profitable.
  • In the past year SFM had a positive cash flow from operations.
  • In the past 5 years SFM has always been profitable.
  • Each year in the past 5 years SFM had a positive operating cash flow.
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 has a better Return On Assets (12.59%) than 94.59% of its industry peers.
  • SFM's Return On Equity of 37.32% is amongst the best of the industry. SFM outperforms 91.89% of its industry peers.
  • SFM has a better Return On Invested Capital (15.90%) than 94.59% of its industry peers.
  • SFM had an Average Return On Invested Capital over the past 3 years of 13.23%. This is significantly below the industry average of 34.77%.
  • 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

  • SFM has a better Profit Margin (5.95%) than 86.49% of its industry peers.
  • SFM's Profit Margin has improved in the last couple of years.
  • SFM's Operating Margin of 7.86% is amongst the best of the industry. SFM outperforms 89.19% of its industry peers.
  • In the last couple of years the Operating Margin of SFM has grown nicely.
  • The Gross Margin of SFM (38.80%) is better than 86.49% of its industry peers.
  • SFM's Gross Margin has been stable in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SFM is creating some value.
  • The number of shares outstanding for SFM has been reduced compared to 1 year ago.
  • Compared to 5 years ago, SFM has less shares outstanding
  • 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

  • SFM has an Altman-Z score of 4.40. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
  • SFM has a Altman-Z score (4.40) which is in line with 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.
  • SFM has a better Debt to FCF ratio (0.18) than 94.59% of its industry peers.
  • A Debt/Equity ratio of 0.06 indicates that SFM is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.06, SFM belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.18
Altman-Z 4.4
ROIC/WACC1.79
WACC8.89%
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

  • A Current Ratio of 0.93 indicates that SFM may have some problems paying its short term obligations.
  • The Current ratio of SFM (0.93) is worse than 70.27% of its industry peers.
  • A Quick Ratio of 0.44 indicates that SFM may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.44, SFM is doing worse than 67.57% 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 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

  • SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.96%, which is quite impressive.
  • 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.
  • The Revenue has grown by 14.08% in the past year. This is quite good.
  • 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.
  • Based on estimates for the next years, SFM will show a quite strong growth in Revenue. The Revenue will grow by 9.22% on average per year.
EPS Next Y6.01%
EPS Next 2Y6.46%
EPS Next 3Y8.21%
EPS Next 5Y9.87%
Revenue Next Year7.91%
Revenue Next 2Y7.68%
Revenue Next 3Y8.23%
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.
  • 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.
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 14.56 indicates a correct valuation of SFM.
  • 78.38% of the companies in the same industry are more expensive than SFM, based on the Price/Earnings ratio.
  • SFM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
  • SFM is valuated correctly with a Price/Forward Earnings ratio of 13.73.
  • 78.38% of the companies in the same industry are more expensive than SFM, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (23.54), we can say SFM is valued slightly cheaper.
Industry RankSector Rank
PE 14.56
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

  • 67.57% 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 72.97% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.6
EV/EBITDA 8.26
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 SFM does not grow enough to justify the current Price/Earnings ratio.
  • 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%

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

0

5. SFM Dividend Analysis

5.1 Amount

  • No dividends for SFM!.
Industry RankSector Rank
Dividend Yield 0%

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SFM Fundamentals: All Metrics, Ratios and Statistics

SPROUTS FARMERS MARKET INC

NASDAQ:SFM (4/10/2026, 8:00:02 PM)

After market: 77.17 0 (0%)

77.17

+1.15 (+1.51%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners102.44%
Inst Owner Change0%
Ins Owners0.46%
Ins Owner Change12.09%
Market Cap7.30B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts73.64
Price Target96.65 (25.24%)
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)0.01%
EPS NQ rev (3m)-8.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.78%
Valuation
Industry RankSector Rank
PE 14.56
Fwd PE 13.73
P/S 0.83
P/FCF 15.6
P/OCF 10.19
P/B 5.2
P/tB 8.98
EV/EBITDA 8.26
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 4.4
F-Score6
WACC8.89%
ROIC/WACC1.79
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 Year7.91%
Revenue Next 2Y7.68%
Revenue Next 3Y8.23%
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 14.56 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.