SPROUTS FARMERS MARKET INC (SFM) Fundamental Analysis & Valuation
NASDAQ:SFM • US85208M1027
80.25 USD
+3.34 (+4.34%)
At close: Mar 6, 2026
79.8 USD
-0.45 (-0.56%)
After Hours: 3/6/2026, 8:00:02 PM
This SFM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
SFM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 38 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making SFM a very profitable company, without any liquidiy or solvency issues. SFM has a correct valuation and a medium growth rate. These ratings could make SFM a good candidate for quality investing.
1. SFM Profitability Analysis
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.
- In the past 5 years SFM always reported a positive cash flow from operatings.
1.2 Ratios
- SFM has a better Return On Assets (12.59%) than 89.47% of its industry peers.
- The Return On Equity of SFM (37.32%) is better than 92.11% of its industry peers.
- SFM has a Return On Invested Capital of 15.90%. This is amongst the best in the industry. SFM outperforms 94.74% of its industry peers.
- SFM had an Average Return On Invested Capital over the past 3 years of 13.23%. This is significantly below the industry average of 28.42%.
- The last Return On Invested Capital (15.90%) for SFM is above the 3 year average (13.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 37.32% | ||
| ROIC | 15.9% |
ROA(3y)10.28%
ROA(5y)9.54%
ROE(3y)29.55%
ROE(5y)27.81%
ROIC(3y)13.23%
ROIC(5y)12.25%
1.3 Margins
- SFM has a better Profit Margin (5.95%) than 89.47% of its industry peers.
- SFM's Profit Margin has improved in the last couple of years.
- The Operating Margin of SFM (7.86%) is better than 89.47% of its industry peers.
- In the last couple of years the Operating Margin of SFM has grown nicely.
- The Gross Margin of SFM (38.80%) is better than 84.21% of its industry peers.
- SFM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.86% | ||
| PM (TTM) | 5.95% | ||
| GM | 38.8% |
OM growth 3Y10.84%
OM growth 5Y5.36%
PM growth 3Y13.39%
PM growth 5Y6%
GM growth 3Y1.89%
GM growth 5Y1.07%
2. SFM Health Analysis
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.
- SFM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SFM has less shares outstanding
- SFM has a worse debt/assets ratio than last year.
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 0.18, which is an excellent value as it means it would take SFM, only 0.18 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.18, SFM belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
- SFM has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.06, SFM belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.82
WACC8.76%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that SFM may have some problems paying its short term obligations.
- SFM has a worse Current ratio (0.93) than 73.68% of its industry peers.
- SFM has a Quick Ratio of 0.93. 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 0.44. This is in the lower half of the industry: SFM underperforms 65.79% 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 | 0.93 | ||
| Quick Ratio | 0.44 |
3. SFM Growth Analysis
3.1 Past
- SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.96%, 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 16.78% on average per year.
- Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 14.08% in the last year.
- Measured over the past years, SFM shows a small growth in Revenue. The Revenue has been growing by 6.36% on average per year.
EPS 1Y (TTM)40.96%
EPS 3Y30.41%
EPS 5Y16.78%
EPS Q2Q%16.46%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y11.2%
Revenue growth 5Y6.36%
Sales Q2Q%7.64%
3.2 Future
- SFM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.27% yearly.
- SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.03% yearly.
EPS Next Y9.93%
EPS Next 2Y11.45%
EPS Next 3Y11.34%
EPS Next 5Y11.27%
Revenue Next Year9.83%
Revenue Next 2Y9.72%
Revenue Next 3Y9.6%
Revenue Next 5Y9.03%
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. SFM Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.14, which indicates a correct valuation of SFM.
- SFM's Price/Earnings ratio is a bit cheaper when compared to the industry. SFM is cheaper than 76.32% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, SFM is valued a bit cheaper.
- A Price/Forward Earnings ratio of 13.77 indicates a correct valuation of SFM.
- SFM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SFM is cheaper than 78.95% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, SFM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
- SFM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SFM is cheaper than 68.42% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.71 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
- The 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.
PEG (NY)1.52
PEG (5Y)0.9
EPS Next 2Y11.45%
EPS Next 3Y11.34%
5. SFM Dividend Analysis
5.1 Amount
- SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SFM Fundamentals: All Metrics, Ratios and Statistics
80.25
+3.34 (+4.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners102.44%
Inst Owner Change-1.4%
Ins Owners0.46%
Ins Owner Change-0.78%
Market Cap7.59B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts74.29
Price Target97.33 (21.28%)
Short Float %11.6%
Short Ratio3.83
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)3.14%
Min EPS beat(2)2.79%
Max EPS beat(2)3.49%
EPS beat(4)4
Avg EPS beat(4)7.45%
Min EPS beat(4)2.79%
Max EPS beat(4)15.57%
EPS beat(8)8
Avg EPS beat(8)10.32%
EPS beat(12)12
Avg EPS beat(12)9.87%
EPS beat(16)16
Avg EPS beat(16)10.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.21%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.26%
Revenue beat(8)6
Avg Revenue beat(8)0.63%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)0.17%
PT rev (1m)-17.58%
PT rev (3m)-20.43%
EPS NQ rev (1m)-7.59%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)-3.72%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 13.77 | ||
| P/S | 0.89 | ||
| P/FCF | 16.71 | ||
| P/OCF | 10.91 | ||
| P/B | 5.57 | ||
| P/tB | 9.61 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)5.3
EY6.6%
EPS(NY)5.83
Fwd EY7.26%
FCF(TTM)4.8
FCFY5.99%
OCF(TTM)7.35
OCFY9.16%
SpS90.44
BVpS14.41
TBVpS8.35
PEG (NY)1.52
PEG (5Y)0.9
Graham Number41.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 37.32% | ||
| ROCE | 21.04% | ||
| ROIC | 15.9% | ||
| ROICexc | 17.25% | ||
| ROICexgc | 21.42% | ||
| OM | 7.86% | ||
| PM (TTM) | 5.95% | ||
| GM | 38.8% | ||
| FCFM | 5.31% |
ROA(3y)10.28%
ROA(5y)9.54%
ROE(3y)29.55%
ROE(5y)27.81%
ROIC(3y)13.23%
ROIC(5y)12.25%
ROICexc(3y)14.39%
ROICexc(5y)13.48%
ROICexgc(3y)18.26%
ROICexgc(5y)17.42%
ROCE(3y)17.51%
ROCE(5y)16.22%
ROICexgc growth 3Y9.28%
ROICexgc growth 5Y2.82%
ROICexc growth 3Y11.69%
ROICexc growth 5Y4.54%
OM growth 3Y10.84%
OM growth 5Y5.36%
PM growth 3Y13.39%
PM growth 5Y6%
GM growth 3Y1.89%
GM growth 5Y1.07%
F-Score6
Asset Turnover2.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 157.41% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 382.38 | ||
| Cash Conversion | 84.29% | ||
| Profit Quality | 89.32% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 4.47 |
F-Score6
WACC8.76%
ROIC/WACC1.82
Cap/Depr(3y)161.75%
Cap/Depr(5y)132.88%
Cap/Sales(3y)3.03%
Cap/Sales(5y)2.54%
Profit Quality(3y)96.98%
Profit Quality(5y)98.61%
High Growth Momentum
Growth
EPS 1Y (TTM)40.96%
EPS 3Y30.41%
EPS 5Y16.78%
EPS Q2Q%16.46%
EPS Next Y9.93%
EPS Next 2Y11.45%
EPS Next 3Y11.34%
EPS Next 5Y11.27%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y11.2%
Revenue growth 5Y6.36%
Sales Q2Q%7.64%
Revenue Next Year9.83%
Revenue Next 2Y9.72%
Revenue Next 3Y9.6%
Revenue Next 5Y9.03%
EBIT growth 1Y33.7%
EBIT growth 3Y23.26%
EBIT growth 5Y12.07%
EBIT Next Year30.84%
EBIT Next 3Y12.51%
EBIT Next 5Y14.54%
FCF growth 1Y12.75%
FCF growth 3Y23.67%
FCF growth 5Y4.69%
OCF growth 1Y10.97%
OCF growth 3Y24.47%
OCF growth 5Y7.71%
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 for SFM stock?
ChartMill assigns a valuation rating of 5 / 10 to SPROUTS FARMERS MARKET INC (SFM). This can be considered as Fairly Valued.
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 9.93% in the next year.