SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
111.78 USD
+0.23 (+0.21%)
111.83 USD
+0.05 (+0.04%)
Overall SFM gets a fundamental rating of 7 out of 10. We evaluated SFM against 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes SFM very considerable for 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.
SFM had positive earnings in each of the past 5 years.
SFM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SFM (12.82%) is better than 94.87% of its industry peers.
SFM's Return On Equity of 35.75% is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
With an excellent Return On Invested Capital value of 15.85%, SFM belongs to the best of the industry, outperforming 97.44% 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 8.75%.
The last Return On Invested Capital (15.85%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| 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
The Profit Margin of SFM (5.77%) is better than 89.74% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 7.69%, SFM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of SFM has grown nicely.
SFM has a better Gross Margin (38.69%) than 84.62% of its industry peers.
SFM's Gross Margin has improved in the last couple of years.
| 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
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
The debt/assets ratio for SFM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.68 indicates that SFM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.68, SFM is doing good in the industry, outperforming 79.49% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.02, SFM belongs to the best of the industry, outperforming 94.87% 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 has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. SFM outperforms 87.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.83
WACC8.64%
2.3 Liquidity
SFM has a Current Ratio of 0.98. This is a bad value and indicates that SFM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.98, SFM is not doing good in the industry: 74.36% of the companies in the same industry are doing better.
SFM has a Quick Ratio of 0.98. 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's Quick ratio of 0.50 is in line compared to the rest of the industry. SFM outperforms 41.03% of its industry peers.
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
SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.88%, which is quite impressive.
Measured over the past years, SFM shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.64% on average per year.
SFM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.83%.
The Revenue has been growing slightly by 6.50% on average over the past years.
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
Based on estimates for the next years, SFM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.03% 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 11.14% on average per year.
EPS Next Y43.14%
EPS Next 2Y28.19%
EPS Next 3Y23.36%
EPS Next 5Y18.03%
Revenue Next Year15.93%
Revenue Next 2Y13.63%
Revenue Next 3Y12.43%
Revenue Next 5Y11.14%
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.
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
The Price/Earnings ratio is 23.00, which indicates a rather expensive current valuation of SFM.
Compared to the rest of the industry, the Price/Earnings ratio of SFM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.40, SFM is valued at the same level.
With a Price/Forward Earnings ratio of 18.09, SFM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SFM is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (22.94), we can say SFM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 18.09 |
4.2 Price Multiples
SFM's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as SFM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.74 | ||
| EV/EBITDA | 13.45 |
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.
The excellent profitability rating of SFM may justify a higher PE ratio.
SFM's earnings are expected to grow with 23.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.93
EPS Next 2Y28.19%
EPS Next 3Y23.36%
5. Dividend
5.1 Amount
SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111.78
+0.23 (+0.21%)
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-0.54%
Ins Owners0.45%
Ins Owner Change-3.67%
Market Cap10.92B
Analysts75
Price Target188.7 (68.81%)
Short Float %7.32%
Short Ratio3.9
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)0.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.73%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 18.09 | ||
| P/S | 1.3 | ||
| P/FCF | 21.74 | ||
| P/OCF | 14.68 | ||
| P/B | 8.05 | ||
| P/tB | 14.25 | ||
| EV/EBITDA | 13.45 |
EPS(TTM)4.86
EY4.35%
EPS(NY)6.18
Fwd EY5.53%
FCF(TTM)5.14
FCFY4.6%
OCF(TTM)7.62
OCFY6.81%
SpS85.94
BVpS13.88
TBVpS7.84
PEG (NY)0.53
PEG (5Y)0.93
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 | 5.68 |
F-Score8
WACC8.64%
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 Y43.14%
EPS Next 2Y28.19%
EPS Next 3Y23.36%
EPS Next 5Y18.03%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%17.27%
Revenue Next Year15.93%
Revenue Next 2Y13.63%
Revenue Next 3Y12.43%
Revenue Next 5Y11.14%
EBIT growth 1Y44.55%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year70.05%
EBIT Next 3Y29.2%
EBIT Next 5Y21.08%
FCF growth 1Y74.78%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y62.82%
OCF growth 3Y20.93%
OCF growth 5Y12.68%