SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
128.88 USD
-7.1 (-5.22%)
129.15 USD
+0.27 (+0.21%)
Taking everything into account, SFM scores 7 out of 10 in our fundamental rating. SFM was compared to 40 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 is still valued neutral. This is a good combination! These ratings could make SFM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
SFM had positive earnings in the past year.
SFM had a positive operating cash flow in the past year.
Each year in the past 5 years SFM has been profitable.
SFM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SFM's Return On Assets of 12.82% is amongst the best of the industry. SFM outperforms 95.00% of its industry peers.
SFM has a better Return On Equity (35.75%) than 92.50% of its industry peers.
SFM has a Return On Invested Capital of 15.85%. This is amongst the best in the industry. SFM outperforms 97.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SFM is above the industry average of 8.47%.
The 3 year average ROIC (11.53%) for SFM is below the current ROIC(15.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 35.75% | ||
| ROIC | 15.85% |
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
Looking at the Profit Margin, with a value of 5.77%, SFM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
SFM's Profit Margin has improved in the last couple of years.
The Operating Margin of SFM (7.69%) is better than 92.50% of its industry peers.
In the last couple of years the Operating Margin of SFM has grown nicely.
With an excellent Gross Margin value of 38.69%, SFM belongs to the best of the industry, outperforming 85.00% 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 | 7.69% | ||
| PM (TTM) | 5.77% | ||
| GM | 38.69% |
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.
The number of shares outstanding for SFM has been reduced compared to 1 year ago.
The number of shares outstanding for SFM has been reduced compared to 5 years ago.
The debt/assets ratio for SFM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.09 indicates that SFM is not in any danger for bankruptcy at the moment.
SFM has a Altman-Z score of 6.09. This is amongst the best in the industry. SFM outperforms 87.50% of its industry peers.
The Debt to FCF ratio of SFM is 0.02, which is an excellent value as it means it would take SFM, only 0.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.02, SFM belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
SFM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
SFM's Debt to Equity ratio of 0.00 is amongst the best of the industry. SFM outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.83
WACC8.68%
2.3 Liquidity
A Current Ratio of 0.98 indicates that SFM may have some problems paying its short term obligations.
SFM has a Current ratio of 0.98. This is in the lower half of the industry: SFM underperforms 75.00% of its industry peers.
A Quick Ratio of 0.50 indicates that SFM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.50, SFM is doing worse than 60.00% 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 | 0.98 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.88% over the past year.
SFM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.64% yearly.
The Revenue has grown by 16.83% in the past year. This is quite good.
SFM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.50% yearly.
EPS 1Y (TTM)51.88%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%43.62%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%17.27%
3.2 Future
The Earnings Per Share is expected to grow by 19.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.53% on average over the next years. This is quite good.
EPS Next Y43.17%
EPS Next 2Y28.25%
EPS Next 3Y23.5%
EPS Next 5Y19.18%
Revenue Next Year15.94%
Revenue Next 2Y13.64%
Revenue Next 3Y12.43%
Revenue Next 5Y11.53%
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.
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 26.52, the valuation of SFM can be described as expensive.
SFM's Price/Earnings ratio is a bit more expensive when compared to the industry. SFM is more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. SFM is around the same levels.
The Price/Forward Earnings ratio is 20.84, which indicates a rather expensive current valuation of SFM.
SFM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.77. SFM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 20.84 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than SFM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.07 | ||
| EV/EBITDA | 15.56 |
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.
SFM's earnings are expected to grow with 23.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)1.08
EPS Next 2Y28.25%
EPS Next 3Y23.5%
5. Dividend
5.1 Amount
SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.88
-7.1 (-5.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.52%
Inst Owner Change-0.05%
Ins Owners0.47%
Ins Owner Change2.31%
Market Cap12.60B
Analysts75
Price Target188.7 (46.42%)
Short Float %7.16%
Short Ratio4.43
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)11.75%
Min EPS beat(2)7.94%
Max EPS beat(2)15.57%
EPS beat(4)4
Avg EPS beat(4)11.74%
Min EPS beat(4)6.62%
Max EPS beat(4)16.84%
EPS beat(8)8
Avg EPS beat(8)10.86%
EPS beat(12)12
Avg EPS beat(12)11.93%
EPS beat(16)16
Avg EPS beat(16)13.09%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.6%
Max Revenue beat(2)1.26%
Revenue beat(4)4
Avg Revenue beat(4)1.31%
Min Revenue beat(4)0.6%
Max Revenue beat(4)2.68%
Revenue beat(8)7
Avg Revenue beat(8)1.07%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)0%
PT rev (3m)-0.78%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)4.9%
EPS NY rev (1m)4.52%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 20.84 | ||
| P/S | 1.5 | ||
| P/FCF | 25.07 | ||
| P/OCF | 16.92 | ||
| P/B | 9.29 | ||
| P/tB | 16.43 | ||
| EV/EBITDA | 15.56 |
EPS(TTM)4.86
EY3.77%
EPS(NY)6.18
Fwd EY4.8%
FCF(TTM)5.14
FCFY3.99%
OCF(TTM)7.62
OCFY5.91%
SpS85.94
BVpS13.88
TBVpS7.84
PEG (NY)0.61
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 35.75% | ||
| ROCE | 21.08% | ||
| ROIC | 15.85% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 21.96% | ||
| OM | 7.69% | ||
| PM (TTM) | 5.77% | ||
| GM | 38.69% | ||
| FCFM | 5.98% |
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%
ROICexcg growth 3Y5.31%
ROICexcg 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-Score8
Asset Turnover2.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 163.72% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 400.67 | ||
| Cash Conversion | 93.84% | ||
| Profit Quality | 103.62% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 6.09 |
F-Score8
WACC8.68%
ROIC/WACC1.83
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)51.88%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%43.62%
EPS Next Y43.17%
EPS Next 2Y28.25%
EPS Next 3Y23.5%
EPS Next 5Y19.18%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%17.27%
Revenue Next Year15.94%
Revenue Next 2Y13.64%
Revenue Next 3Y12.43%
Revenue Next 5Y11.53%
EBIT growth 1Y44.55%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year69.62%
EBIT Next 3Y29.48%
EBIT Next 5Y21.7%
FCF growth 1Y74.78%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y62.82%
OCF growth 3Y20.93%
OCF growth 5Y12.68%