SPROUTS FARMERS MARKET INC (SFM)
US85208M1027 - Common Stock
Overall SFM gets a fundamental rating of 6 out of 10. We evaluated SFM against 43 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make SFM a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year SFM was profitable.
SFM had a positive operating cash flow in the past year.
In the past 5 years SFM has always been profitable.
SFM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.79%, SFM belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
With an excellent Return On Equity value of 26.13%, SFM belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.18%, SFM belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SFM is above the industry average of 8.45%.
The last Return On Invested Capital (12.18%) for SFM is above the 3 year average (10.65%), which is a sign of increasing profitability.
| 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
SFM has a Profit Margin of 4.73%. This is amongst the best in the industry. SFM outperforms 95.35% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
SFM has a better Operating Margin (6.49%) than 95.35% of its industry peers.
SFM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 37.75%, SFM belongs to the best of the industry, outperforming 88.37% 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 | 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
SFM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SFM has been reduced compared to 1 year ago.
The number of shares outstanding for SFM has been reduced compared to 5 years ago.
The debt/assets ratio for SFM has been reduced compared to a year ago.
2.2 Solvency
SFM has an Altman-Z score of 6.28. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM has a better Altman-Z score (6.28) than 88.37% of its industry peers.
The Debt to FCF ratio of SFM is 0.03, which is an excellent value as it means it would take SFM, only 0.03 years of fcf income to pay off all of its debts.
SFM's Debt to FCF ratio of 0.03 is amongst the best of the industry. SFM outperforms 95.35% 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.
Looking at the Debt to Equity ratio, with a value of 0.01, SFM belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.33
WACC9.14%
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 51.16% 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 (0.59) 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 | 1.13 | ||
| 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.
SFM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.20% yearly.
Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 10.52% in the last year.
SFM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.60% yearly.
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
Based on estimates for the next years, SFM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.25% on average per year.
SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.05% yearly.
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.
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.06 indicates a quite expensive valuation of SFM.
SFM's Price/Earnings ratio is a bit more expensive when compared to the industry. SFM is more expensive than 62.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (27.73), we can say SFM is valued slightly more expensively.
SFM is valuated quite expensively with a Price/Forward Earnings ratio of 31.06.
SFM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (22.83), we can say SFM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.06 | ||
| Fwd PE | 31.06 |
4.2 Price Multiples
SFM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SFM is more expensive than 62.79% of the companies 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 | 37.16 | ||
| EV/EBITDA | 20.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SFM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SFM's earnings are expected to grow with 18.90% in the coming years.
PEG (NY)1.2
PEG (5Y)2.21
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 (12/20/2024, 8:00:01 PM)
After market: 133 +1.3 (+0.99%)131.7
-2.99 (-2.22%)
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-2.21%
Ins Owners0.43%
Ins Owner Change-8.94%
Market Cap13.17B
Analysts67.62
Price Target137.42 (4.34%)
Short Float %6.64%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)40.08%
PT rev (3m)48.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)36.95%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)9.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.94%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.06 | ||
| Fwd PE | 31.06 | ||
| P/S | 1.77 | ||
| P/FCF | 37.16 | ||
| P/OCF | 22.85 | ||
| P/B | 9.8 | ||
| P/tB | 17.47 | ||
| EV/EBITDA | 20.76 |
EPS(TTM)3.46
EY2.63%
EPS(NY)4.24
Fwd EY3.22%
FCF(TTM)3.54
FCFY2.69%
OCF(TTM)5.76
OCFY4.38%
SpS74.22
BVpS13.44
TBVpS7.54
PEG (NY)1.2
PEG (5Y)2.21
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 | 6.28 |
F-Score8
WACC9.14%
ROIC/WACC1.33
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%