79.925 USD
-1.59 (-1.94%)
We assign a fundamental rating of 7 out of 10 to SFM. SFM was compared to 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. An interesting combination arises when we look at growth and value: SFM is growing strongly while it also seems undervalued. With these ratings, SFM could be worth investigating further for value and growth and 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.
- 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.
1.2 Ratios
- SFM has a Return On Assets of 12.79%. This is amongst the best in the industry. SFM outperforms 89.47% of its industry peers.
- Looking at the Return On Equity, with a value of 35.79%, SFM belongs to the top of the industry, outperforming 92.11% 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 92.11% 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 significantly below the industry average of 28.32%.
- 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 89.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of SFM has grown nicely.
- Looking at the Operating Margin, with a value of 7.84%, SFM belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- In the last couple of years the Operating Margin of SFM has grown nicely.
- With an excellent Gross Margin value of 38.83%, SFM belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- 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.
- 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
- SFM has an Altman-Z score of 4.78. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
- SFM's Altman-Z score of 4.78 is fine compared to the rest of the industry. SFM outperforms 65.79% of its industry peers.
- The Debt to FCF ratio of SFM is 0.12, which is an excellent value as it means it would take SFM, only 0.12 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.12, SFM belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
- A Debt/Equity ratio of 0.04 indicates that SFM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.04, SFM belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.8
WACC8.76%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that SFM should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.05, SFM is doing worse than 60.53% of the companies in the same industry.
- SFM has a Quick Ratio of 1.05. 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 (0.53) which is comparable to the rest of the 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.
- 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.
- Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 16.60% in the last year.
- 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
- The Earnings Per Share is expected to grow by 16.28% 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 10.63% on average per year.
EPS Next Y41.53%
EPS Next 2Y24.33%
EPS Next 3Y20.39%
EPS Next 5Y16.28%
Revenue Next Year14.66%
Revenue Next 2Y12.24%
Revenue Next 3Y11.39%
Revenue Next 5Y10.63%
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
- A Price/Earnings ratio of 15.46 indicates a correct valuation of SFM.
- 71.05% of the companies in the same industry are more expensive than SFM, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (27.54), we can say SFM is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.75, which indicates a correct valuation of SFM.
- Based on the Price/Forward Earnings ratio, SFM is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
- SFM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 13.75 |
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.
- 71.05% of the companies in the same industry are more expensive than SFM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.01 | ||
| EV/EBITDA | 9.24 |
4.3 Compensation for Growth
- SFM's 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 20.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)0.63
EPS Next 2Y24.33%
EPS Next 3Y20.39%
5. Dividend
5.1 Amount
- No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:SFM (1/16/2026, 12:55:48 PM)
79.925
-1.59 (-1.94%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners104.35%
Inst Owner Change1.21%
Ins Owners0.45%
Ins Owner Change-1.6%
Market Cap7.78B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target122.32 (53.04%)
Short Float %8.37%
Short Ratio3.09
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)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)0%
PT rev (3m)-35.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 13.75 | ||
| P/S | 0.9 | ||
| P/FCF | 17.01 | ||
| P/OCF | 11.08 | ||
| P/B | 5.42 | ||
| P/tB | 9.21 | ||
| EV/EBITDA | 9.24 |
EPS(TTM)5.17
EY6.47%
EPS(NY)5.81
Fwd EY7.27%
FCF(TTM)4.7
FCFY5.88%
OCF(TTM)7.21
OCFY9.02%
SpS88.87
BVpS14.73
TBVpS8.67
PEG (NY)0.37
PEG (5Y)0.63
Graham Number41.4
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 | 4.78 |
F-Score7
WACC8.76%
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 2Y24.33%
EPS Next 3Y20.39%
EPS Next 5Y16.28%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%13.09%
Revenue Next Year14.66%
Revenue Next 2Y12.24%
Revenue Next 3Y11.39%
Revenue Next 5Y10.63%
EBIT growth 1Y40.74%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year67.71%
EBIT Next 3Y25.62%
EBIT Next 5Y19.03%
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 for 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 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 41.53% in the next year.