SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
81.79 USD
+0.1 (+0.12%)
82 USD
+0.21 (+0.26%)
Taking everything into account, SFM scores 7 out of 10 in our fundamental rating. SFM was compared to 39 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 evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make SFM suitable 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.
Each year in the past 5 years SFM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.79%, SFM belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
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 8.72%.
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
Looking at the Profit Margin, with a value of 5.93%, SFM belongs to the top of the industry, outperforming 89.74% 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 92.31% of the companies in the same industry.
SFM's Operating Margin has improved in the last couple of years.
SFM has a better Gross Margin (38.83%) than 84.62% of its industry peers.
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
SFM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
SFM has an Altman-Z score of 4.79. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SFM (4.79) is better than 69.23% 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 better Debt to FCF ratio (0.12) than 94.87% of its industry peers.
SFM has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
SFM has a better Debt to Equity ratio (0.04) than 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.8
WACC8.75%
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 of 1.05. This is comparable to the rest of the industry: SFM outperforms 46.15% 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 48.72% 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
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%.
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 16.29% 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.
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
With a Price/Earnings ratio of 15.82, SFM is valued correctly.
SFM's Price/Earnings ratio is a bit cheaper when compared to the industry. SFM is cheaper than 74.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (25.89), we can say SFM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.98, the valuation of SFM can be described as correct.
Based on the Price/Forward Earnings ratio, SFM is valued a bit cheaper than 74.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. SFM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
SFM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SFM is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SFM is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 9.29 |
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.
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 20.61% in the coming years.
PEG (NY)0.38
PEG (5Y)0.64
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 |
81.79
+0.1 (+0.12%)
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-0.81%
Ins Owners0.45%
Ins Owner Change-3.24%
Market Cap7.99B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target163.2 (99.54%)
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)-13.51%
EPS NQ rev (1m)-11.09%
EPS NQ rev (3m)-10.03%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-4.19%
Revenue NQ rev (3m)-4.06%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 13.98 | ||
| P/S | 0.92 | ||
| P/FCF | 17.47 | ||
| P/OCF | 11.38 | ||
| P/B | 5.57 | ||
| P/tB | 9.46 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)5.17
EY6.32%
EPS(NY)5.85
Fwd EY7.15%
FCF(TTM)4.68
FCFY5.72%
OCF(TTM)7.19
OCFY8.79%
SpS88.55
BVpS14.68
TBVpS8.64
PEG (NY)0.38
PEG (5Y)0.64
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 | 4.79 |
F-Score7
WACC8.75%
ROIC/WACC1.8
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 15.82 and the Price/Book (PB) ratio is 5.57.