SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SFM • US85208M1027

67.32 USD
+0.98 (+1.48%)
At close: Feb 6, 2026
67.1006 USD
-0.22 (-0.33%)
After Hours: 2/6/2026, 8:05:55 PM
Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to SFM. SFM was compared to 38 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. An interesting combination arises when we look at growth and value: SFM is growing strongly while it also seems undervalued. With these ratings, SFM could be worth investigating further for value and growth and quality investing!.


Dividend Valuation Growth Profitability Health

9

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.
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 200M 400M 600M

1.2 Ratios

  • With an excellent Return On Assets value of 12.79%, SFM belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
  • The Return On Equity of SFM (35.79%) is better than 92.11% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 15.78%, SFM belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for SFM is significantly below the industry average of 28.25%.
  • The 3 year average ROIC (11.53%) for SFM is below the current ROIC(15.78%), indicating increased profibility in the last year.
Industry RankSector 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%
SFM Yearly ROA, ROE, ROICSFM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.93%, SFM belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
  • SFM's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 7.84%, SFM belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SFM has grown nicely.
  • Looking at the Gross Margin, with a value of 38.83%, SFM belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SFM has grown nicely.
Industry RankSector 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%
SFM Yearly Profit, Operating, Gross MarginsSFM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • SFM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for SFM has been reduced compared to 1 year ago.
  • SFM has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for SFM has been reduced compared to a year ago.
SFM Yearly Shares OutstandingSFM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B

2.2 Solvency

  • SFM has an Altman-Z score of 4.44. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
  • SFM has a Altman-Z score of 4.44. This is in the better half of the industry: SFM outperforms 60.53% of its industry peers.
  • 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 has a Debt to FCF ratio of 0.12. This is amongst the best in the industry. SFM outperforms 97.37% 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 86.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.12
Altman-Z 4.44
ROIC/WACC1.79
WACC8.81%
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 200M 400M 600M 800M 1B

2.3 Liquidity

  • SFM has a Current Ratio of 1.05. This is a normal value and indicates that SFM is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.05, SFM is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.53 indicates that SFM may have some problems paying its short term obligations.
  • The Quick ratio of SFM (0.53) is comparable to the rest of the 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 1.05
Quick Ratio 0.53
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 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.42%, which is quite impressive.
  • 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%.
  • 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 16.28% on average per year.
  • Based on estimates for the next years, SFM will show a quite strong growth in Revenue. The Revenue will grow by 10.63% on average per year.
EPS Next Y41.5%
EPS Next 2Y24.47%
EPS Next 3Y20.51%
EPS Next 5Y16.28%
Revenue Next Year14.66%
Revenue Next 2Y12.38%
Revenue Next 3Y11.49%
Revenue Next 5Y10.63%

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.
  • 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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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.02, the valuation of SFM can be described as correct.
  • Based on the Price/Earnings ratio, SFM is valued cheaper than 84.21% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.92. SFM is valued rather cheaply when compared to this.
  • SFM is valuated reasonably with a Price/Forward Earnings ratio of 11.56.
  • Based on the Price/Forward Earnings ratio, SFM is valued cheaper than 86.84% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, SFM is valued rather cheaply.
Industry RankSector Rank
PE 13.02
Fwd PE 11.56
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

  • 71.05% of the companies in the same industry are more expensive than SFM, based on the Enterprise Value to EBITDA ratio.
  • 76.32% of the companies in the same industry are more expensive than SFM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.33
EV/EBITDA 7.46
SFM Per share dataSFM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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.
  • 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 20.51% in the coming years.
PEG (NY)0.31
PEG (5Y)0.53
EPS Next 2Y24.47%
EPS Next 3Y20.51%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

SPROUTS FARMERS MARKET INC

NASDAQ:SFM (2/6/2026, 8:05:55 PM)

After market: 67.1006 -0.22 (-0.33%)

67.32

+0.98 (+1.48%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)10-29
Earnings (Next)02-19
Inst Owners104.35%
Inst Owner Change-2.41%
Ins Owners0.45%
Ins Owner Change-1.6%
Market Cap6.55B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target118.09 (75.42%)
Short Float %9.21%
Short Ratio3.66
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)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)-3.46%
PT rev (3m)-27.64%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
Industry RankSector Rank
PE 13.02
Fwd PE 11.56
P/S 0.76
P/FCF 14.33
P/OCF 9.33
P/B 4.57
P/tB 7.76
EV/EBITDA 7.46
EPS(TTM)5.17
EY7.68%
EPS(NY)5.83
Fwd EY8.65%
FCF(TTM)4.7
FCFY6.98%
OCF(TTM)7.21
OCFY10.71%
SpS88.87
BVpS14.73
TBVpS8.67
PEG (NY)0.31
PEG (5Y)0.53
Graham Number41.4
Profitability
Industry RankSector 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 RankSector 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 4.44
F-Score7
WACC8.81%
ROIC/WACC1.79
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 Y41.5%
EPS Next 2Y24.47%
EPS Next 3Y20.51%
EPS Next 5Y16.28%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%13.09%
Revenue Next Year14.66%
Revenue Next 2Y12.38%
Revenue Next 3Y11.49%
Revenue Next 5Y10.63%
EBIT growth 1Y40.74%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year67.58%
EBIT Next 3Y25.95%
EBIT Next 5Y19.03%
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 8 / 10 to SFM.


What is the valuation status for SFM stock?

ChartMill assigns a valuation rating of 8 / 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 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 41.5% in the next year.