SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM - Nasdaq - US85208M1027 - Common Stock
We assign a fundamental rating of 6 out of 10 to SFM. SFM was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. SFM gets an excellent profitability rating and is at the same time showing great financial health properties. SFM is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, SFM could be worth investigating further for 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.
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
Looking at the Return On Assets, with a value of 9.79%, SFM belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
The Return On Equity of SFM (26.13%) is better than 85.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.18%, SFM belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
SFM had an Average Return On Invested Capital over the past 3 years of 10.65%. This is above the industry average of 8.38%.
The 3 year average ROIC (10.65%) for SFM is below the current ROIC(12.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 26.13% | ||
| ROIC | 12.18% |
ROA(3y)8.21%
ROA(5y)8.08%
ROE(3y)24.31%
ROE(5y)26.25%
ROIC(3y)10.65%
ROIC(5y)10.39%
1.3 Margins
The Profit Margin of SFM (4.73%) is better than 95.00% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
SFM has a Operating Margin of 6.49%. This is amongst the best in the industry. SFM outperforms 95.00% of its industry peers.
SFM's Operating Margin has improved in the last couple of years.
The Gross Margin of SFM (37.75%) is better than 87.50% of its industry peers.
SFM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.49% | ||
| PM (TTM) | 4.73% | ||
| GM | 37.75% |
OM growth 3Y-1.98%
OM growth 5Y4.77%
PM growth 3Y-5.21%
PM growth 5Y4.46%
GM growth 3Y0.09%
GM growth 5Y1.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SFM is still creating some value.
Compared to 1 year ago, SFM has less shares outstanding
Compared to 5 years ago, SFM has less shares outstanding
SFM has a better debt/assets ratio than last year.
2.2 Solvency
SFM has an Altman-Z score of 6.69. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM has a better Altman-Z score (6.69) than 87.50% of its industry peers.
SFM has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
SFM has a Debt to FCF ratio of 0.03. This is amongst the best in the industry. SFM outperforms 95.00% of its industry peers.
SFM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
SFM has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. SFM outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 6.69 |
ROIC/WACC1.32
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.13 indicates that SFM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, SFM is in line with its industry, outperforming 45.00% of the companies in the same industry.
SFM has a Quick Ratio of 1.13. This is a bad value and indicates that SFM is not financially healthy enough and could expect problems in meeting its short term obligations.
SFM has a Quick ratio of 0.59. This is comparable to the rest of the industry: SFM outperforms 50.00% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.36%, 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 17.20% on average per year.
Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 10.52% in the last year.
Measured over the past years, SFM shows a small growth in Revenue. The Revenue has been growing by 5.60% on average per year.
EPS 1Y (TTM)25.36%
EPS 3Y5.07%
EPS 5Y17.2%
EPS Q2Q%40%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y1.86%
Revenue growth 5Y5.6%
Sales Q2Q%13.57%
3.2 Future
The Earnings Per Share is expected to grow by 17.25% on average over the next years. This is quite good.
Based on estimates for the next years, SFM will show a quite strong growth in Revenue. The Revenue will grow by 11.05% on average per year.
EPS Next Y31.64%
EPS Next 2Y22.4%
EPS Next 3Y18.9%
EPS Next 5Y17.25%
Revenue Next Year12.33%
Revenue Next 2Y11.24%
Revenue Next 3Y11%
Revenue Next 5Y11.05%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
SFM is valuated quite expensively with a Price/Earnings ratio of 42.49.
Based on the Price/Earnings ratio, SFM is valued a bit more expensive than 65.00% of the companies in the same industry.
SFM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 34.67, the valuation of SFM can be described as expensive.
Based on the Price/Forward Earnings ratio, SFM is valued a bit more expensive than 60.00% of the companies in the same industry.
SFM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.49 | ||
| Fwd PE | 34.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFM indicates a slightly more expensive valuation: SFM is more expensive than 65.00% of the companies listed in the same industry.
SFM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.47 | ||
| EV/EBITDA | 23.23 |
4.3 Compensation for Growth
SFM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SFM may justify a higher PE ratio.
SFM's earnings are expected to grow with 18.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)2.47
EPS Next 2Y22.4%
EPS Next 3Y18.9%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPROUTS FARMERS MARKET INC
NASDAQ:SFM (1/21/2025, 8:26:19 PM)
Premarket: 147.99 +0.99 (+0.67%)147
+7.75 (+5.57%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.91%
Inst Owner Change-1.73%
Ins Owners0.43%
Ins Owner Change-8.37%
Market Cap14.70B
Analysts67.62
Price Target137.89 (-6.2%)
Short Float %6.3%
Short Ratio4.39
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)17.86%
Min EPS beat(2)16.84%
Max EPS beat(2)18.87%
EPS beat(4)4
Avg EPS beat(4)13.4%
Min EPS beat(4)7.48%
Max EPS beat(4)18.87%
EPS beat(8)8
Avg EPS beat(8)11.84%
EPS beat(12)12
Avg EPS beat(12)11.55%
EPS beat(16)16
Avg EPS beat(16)15.98%
Revenue beat(2)2
Avg Revenue beat(2)2.38%
Min Revenue beat(2)2.08%
Max Revenue beat(2)2.68%
Revenue beat(4)3
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-0.67%
Max Revenue beat(4)2.68%
Revenue beat(8)4
Avg Revenue beat(8)0.64%
Revenue beat(12)5
Avg Revenue beat(12)0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.63%
PT rev (1m)0.34%
PT rev (3m)40.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)36.95%
EPS NY rev (1m)0%
EPS NY rev (3m)9.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.49 | ||
| Fwd PE | 34.67 | ||
| P/S | 1.98 | ||
| P/FCF | 41.47 | ||
| P/OCF | 25.5 | ||
| P/B | 10.94 | ||
| P/tB | 19.5 | ||
| EV/EBITDA | 23.23 |
EPS(TTM)3.46
EY2.35%
EPS(NY)4.24
Fwd EY2.88%
FCF(TTM)3.54
FCFY2.41%
OCF(TTM)5.76
OCFY3.92%
SpS74.22
BVpS13.44
TBVpS7.54
PEG (NY)1.34
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 26.13% | ||
| ROCE | 16.23% | ||
| ROIC | 12.18% | ||
| ROICexc | 13.59% | ||
| ROICexgc | 17.47% | ||
| OM | 6.49% | ||
| PM (TTM) | 4.73% | ||
| GM | 37.75% | ||
| FCFM | 4.78% |
ROA(3y)8.21%
ROA(5y)8.08%
ROE(3y)24.31%
ROE(5y)26.25%
ROIC(3y)10.65%
ROIC(5y)10.39%
ROICexc(3y)11.79%
ROICexc(5y)11.34%
ROICexgc(3y)15.59%
ROICexgc(5y)15.08%
ROCE(3y)14.19%
ROCE(5y)13.85%
ROICexcg growth 3Y-7.4%
ROICexcg growth 5Y-7.76%
ROICexc growth 3Y-6.16%
ROICexc growth 5Y-2.6%
OM growth 3Y-1.98%
OM growth 5Y4.77%
PM growth 3Y-5.21%
PM growth 5Y4.46%
GM growth 3Y0.09%
GM growth 5Y1.91%
F-Score8
Asset Turnover2.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 160.88% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 72.2 | ||
| Cash Conversion | 93% | ||
| Profit Quality | 100.96% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 6.69 |
F-Score8
WACC9.19%
ROIC/WACC1.32
Cap/Depr(3y)114.22%
Cap/Depr(5y)117.66%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.41%
Profit Quality(3y)98.25%
Profit Quality(5y)107.82%
High Growth Momentum
Growth
EPS 1Y (TTM)25.36%
EPS 3Y5.07%
EPS 5Y17.2%
EPS Q2Q%40%
EPS Next Y31.64%
EPS Next 2Y22.4%
EPS Next 3Y18.9%
EPS Next 5Y17.25%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y1.86%
Revenue growth 5Y5.6%
Sales Q2Q%13.57%
Revenue Next Year12.33%
Revenue Next 2Y11.24%
Revenue Next 3Y11%
Revenue Next 5Y11.05%
EBIT growth 1Y25.28%
EBIT growth 3Y-0.15%
EBIT growth 5Y10.63%
EBIT Next Year65.21%
EBIT Next 3Y26.91%
EBIT Next 5Y21.36%
FCF growth 1Y35.38%
FCF growth 3Y-13.62%
FCF growth 5Y15.37%
OCF growth 1Y53.75%
OCF growth 3Y-1.99%
OCF growth 5Y9.58%