SPROUTS FARMERS MARKET INC (SFM) Fundamental Analysis & Valuation

NASDAQ:SFM • US85208M1027

77.08 USD
-0.71 (-0.91%)
Last: Mar 10, 2026, 10:04 AM
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This SFM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

Taking everything into account, SFM scores 7 out of 10 in our fundamental rating. SFM was compared to 38 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 has a decent growth rate and is not valued too expensively. With these ratings, SFM could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

9

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.
  • 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.
SFM Yearly Net Income VS EBIT VS OCF VS FCFSFM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • The Return On Assets of SFM (12.59%) is better than 89.47% of its industry peers.
  • With an excellent Return On Equity value of 37.32%, SFM belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
  • SFM's Return On Invested Capital of 15.90% is amongst the best of the industry. SFM outperforms 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 28.43%.
  • The 3 year average ROIC (13.23%) for SFM is below the current ROIC(15.90%), indicating increased profibility in the last year.
Industry RankSector 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%
SFM Yearly ROA, ROE, ROICSFM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.95%, SFM belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
  • SFM's Profit Margin has improved in the last couple of years.
  • The Operating Margin of SFM (7.86%) is better 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 38.80%, SFM belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
  • SFM's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SFM Yearly Profit, Operating, Gross MarginsSFM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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7

2. SFM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SFM is creating value.
  • Compared to 1 year ago, SFM has less shares outstanding
  • The number of shares outstanding for SFM has been reduced compared to 5 years ago.
  • SFM has a worse debt/assets ratio than last year.
SFM Yearly Shares OutstandingSFM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
SFM Yearly Total Debt VS Total AssetsSFM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • SFM has an Altman-Z score of 4.44. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SFM (4.44) is better than 60.53% of its industry peers.
  • SFM has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
  • SFM has a Debt to FCF ratio of 0.18. This is amongst the best in the industry. SFM outperforms 97.37% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.18
Altman-Z 4.44
ROIC/WACC1.82
WACC8.75%
SFM Yearly LT Debt VS Equity VS FCFSFM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.3 Liquidity

  • A Current Ratio of 0.93 indicates that SFM may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.93, SFM is doing worse than 73.68% of the companies in the same industry.
  • A Quick Ratio of 0.44 indicates that SFM may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.44, SFM is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
  • 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 RankSector Rank
Current Ratio 0.93
Quick Ratio 0.44
SFM Yearly Current Assets VS Current LiabilitesSFM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • The Earnings Per Share has been growing by 16.78% on average over the past years. This is quite good.
  • The Revenue has grown by 14.08% in the past year. This is quite good.
  • 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

  • Based on estimates for the next years, SFM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.87% on average per year.
  • Based on estimates for the next years, SFM will show a quite strong growth in Revenue. The Revenue will grow by 9.22% on average per year.
EPS Next Y6.01%
EPS Next 2Y6.46%
EPS Next 3Y8.21%
EPS Next 5Y9.87%
Revenue Next Year7.89%
Revenue Next 2Y7.64%
Revenue Next 3Y8.16%
Revenue Next 5Y9.22%

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 decreasing.
  • 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.
SFM Yearly Revenue VS EstimatesSFM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
SFM Yearly EPS VS EstimatesSFM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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5

4. SFM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.54, which indicates a correct valuation of SFM.
  • 76.32% of the companies in the same industry are more expensive than SFM, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.45, SFM is valued a bit cheaper.
  • SFM is valuated correctly with a Price/Forward Earnings ratio of 13.72.
  • 73.68% of the companies in the same industry are more expensive than SFM, based on the Price/Forward Earnings ratio.
  • SFM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.65.
Industry RankSector Rank
PE 14.54
Fwd PE 13.72
SFM Price Earnings VS Forward Price EarningsSFM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 71.05% of the companies in the same industry are more expensive than SFM, based on the Enterprise Value to EBITDA ratio.
  • 73.68% of the companies in the same industry are more expensive than SFM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.59
EV/EBITDA 8.46
SFM Per share dataSFM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • SFM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)0.87
EPS Next 2Y6.46%
EPS Next 3Y8.21%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SFM Dividend Analysis

5.1 Amount

  • No dividends for SFM!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SFM Fundamentals: All Metrics, Ratios and Statistics

SPROUTS FARMERS MARKET INC

NASDAQ:SFM (3/10/2026, 10:04:05 AM)

77.08

-0.71 (-0.91%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-19
Earnings (Next)04-28
Inst Owners102.44%
Inst Owner Change-1.5%
Ins Owners0.46%
Ins Owner Change-0.74%
Market Cap7.29B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts74.29
Price Target97.33 (26.27%)
Short Float %11.6%
Short Ratio3.83
Dividend
Industry RankSector 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)-19.02%
PT rev (3m)-20.43%
EPS NQ rev (1m)-8.29%
EPS NQ rev (3m)-7.96%
EPS NY rev (1m)-3.57%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)-3.97%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)-1.79%
Valuation
Industry RankSector Rank
PE 14.54
Fwd PE 13.72
P/S 0.83
P/FCF 15.59
P/OCF 10.18
P/B 5.2
P/tB 8.97
EV/EBITDA 8.46
EPS(TTM)5.3
EY6.88%
EPS(NY)5.62
Fwd EY7.29%
FCF(TTM)4.95
FCFY6.42%
OCF(TTM)7.57
OCFY9.82%
SpS93.11
BVpS14.83
TBVpS8.6
PEG (NY)2.42
PEG (5Y)0.87
Graham Number42.06
Profitability
Industry RankSector 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 RankSector 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 4.44
F-Score6
WACC8.75%
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 Y6.01%
EPS Next 2Y6.46%
EPS Next 3Y8.21%
EPS Next 5Y9.87%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y11.2%
Revenue growth 5Y6.36%
Sales Q2Q%7.64%
Revenue Next Year7.89%
Revenue Next 2Y7.64%
Revenue Next 3Y8.16%
Revenue Next 5Y9.22%
EBIT growth 1Y33.7%
EBIT growth 3Y23.26%
EBIT growth 5Y12.07%
EBIT Next Year29.55%
EBIT Next 3Y12.31%
EBIT Next 5Y13.11%
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 6.01% in the next year.