SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM • US85208M1027
67.67 USD
+0.11 (+0.16%)
At close: Feb 18, 2026
67.67 USD
0 (0%)
After Hours: 2/18/2026, 4:35:36 PM
Overall SFM gets a fundamental rating of 8 out of 10. We evaluated SFM against 38 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare 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.
- In the past year SFM had a positive cash flow from operations.
- SFM had positive earnings in each of the past 5 years.
- In the past 5 years SFM always reported a positive cash flow from operatings.
1.2 Ratios
- SFM has a Return On Assets of 12.79%. This is amongst the best in the industry. SFM outperforms 89.47% of its industry peers.
- The Return On Equity of SFM (35.79%) is better than 92.11% of its industry peers.
- SFM has a better Return On Invested Capital (15.78%) than 94.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SFM is significantly below the industry average of 28.34%.
- 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's Profit Margin of 5.93% is amongst the best of the industry. SFM outperforms 89.47% of its industry peers.
- SFM's Profit Margin has improved in the last couple of years.
- SFM has a better Operating Margin (7.84%) than 89.47% of its industry peers.
- SFM's Operating Margin has improved in the last couple of years.
- 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 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.
- SFM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SFM has less shares outstanding
- Compared to 1 year ago, SFM has an improved debt to assets ratio.
2.2 Solvency
- SFM has an Altman-Z score of 4.47. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
- SFM has a Altman-Z score of 4.47. This is in the better half of the industry: SFM outperforms 60.53% 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.
- SFM has a better Debt to FCF ratio (0.12) than 97.37% 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 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.82
WACC8.65%
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.
- SFM has a Current ratio of 1.05. This is in the lower half of the industry: SFM underperforms 60.53% of its industry peers.
- A Quick Ratio of 0.53 indicates that SFM may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.53, SFM is in line with its industry, outperforming 47.37% of the companies in the same 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.
- The Earnings Per Share has been growing by 24.64% on average over the past years. This is a very strong growth
- Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 16.60% in the last year.
- 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
- 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.
- SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y41.52%
EPS Next 2Y24.48%
EPS Next 3Y20.52%
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.
4. Valuation
4.1 Price/Earnings Ratio
- SFM is valuated correctly with a Price/Earnings ratio of 13.09.
- SFM's Price/Earnings ratio is rather cheap when compared to the industry. SFM is cheaper than 81.58% of the companies in the same industry.
- SFM is valuated cheaply when we compare the Price/Earnings ratio to 27.16, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 11.61 indicates a reasonable valuation of SFM.
- Based on the Price/Forward Earnings ratio, SFM is valued cheaper than 84.21% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.10. SFM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 11.61 |
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 71.05% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, SFM is valued a bit cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.4 | ||
| EV/EBITDA | 7.6 |
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.
- 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 20.52% in the coming years.
PEG (NY)0.32
PEG (5Y)0.53
EPS Next 2Y24.48%
EPS Next 3Y20.52%
5. Dividend
5.1 Amount
- SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
67.67
+0.11 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-19 2026-02-19/amc
Inst Owners104.35%
Inst Owner Change-2.75%
Ins Owners0.45%
Ins Owner Change-0.82%
Market Cap6.59B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts74.29
Price Target120.19 (77.61%)
Short Float %11.13%
Short Ratio4.17
Dividend
| Industry Rank | Sector 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)-1.74%
PT rev (3m)-26.35%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 11.61 | ||
| P/S | 0.76 | ||
| P/FCF | 14.4 | ||
| P/OCF | 9.38 | ||
| P/B | 4.59 | ||
| P/tB | 7.8 | ||
| EV/EBITDA | 7.6 |
EPS(TTM)5.17
EY7.64%
EPS(NY)5.83
Fwd EY8.61%
FCF(TTM)4.7
FCFY6.94%
OCF(TTM)7.21
OCFY10.66%
SpS88.87
BVpS14.73
TBVpS8.67
PEG (NY)0.32
PEG (5Y)0.53
Graham Number41.4
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 | 4.47 |
F-Score7
WACC8.65%
ROIC/WACC1.82
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 Y41.52%
EPS Next 2Y24.48%
EPS Next 3Y20.52%
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 41.52% in the next year.