SPROUTS FARMERS MARKET INC (SFM) Fundamental Analysis & Valuation

NASDAQ:SFM • US85208M1027

Current stock price

81.73 USD
-0.33 (-0.4%)
At close:
81.69 USD
-0.04 (-0.05%)
After Hours:

This SFM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

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.
  • Each year in the past 5 years SFM had a positive operating cash flow.
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

  • SFM's Return On Assets of 12.59% is amongst the best of the industry. SFM outperforms 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 29.52%.
  • 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.
  • In the last couple of years the Profit Margin of SFM has grown nicely.
  • SFM's Operating Margin of 7.86% is amongst the best of the industry. SFM outperforms 89.47% of its industry peers.
  • SFM's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 38.80%, SFM belongs to the best 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) just above the Cost of Capital (WACC), SFM is creating some value.
  • SFM has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for SFM has been reduced compared to 5 years ago.
  • The debt/assets ratio for SFM is higher compared to a year ago.
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

  • An Altman-Z score of 4.53 indicates that SFM is not in any danger for bankruptcy at the moment.
  • SFM's Altman-Z score of 4.53 is fine compared to the rest of the industry. SFM outperforms 63.16% 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.
  • Looking at the Debt to FCF ratio, with a value of 0.18, SFM belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
  • A Debt/Equity ratio of 0.06 indicates that SFM is not too dependend on debt financing.
  • SFM's Debt to Equity ratio of 0.06 is amongst the best of the industry. SFM outperforms 86.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.18
Altman-Z 4.53
ROIC/WACC1.79
WACC8.88%
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.
  • SFM has a Current ratio of 0.93. This is in the lower half of the industry: SFM underperforms 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's Quick ratio of 0.44 is on the low side compared to the rest of the industry. SFM is outperformed by 65.79% 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 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.
  • 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.
  • SFM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.08%.
  • The Revenue has been growing slightly by 6.36% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 9.87% 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 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 15.42, 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.
  • When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (25.96), we can say SFM is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 14.55, the valuation of SFM can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 76.32% of the companies listed in the same industry.
  • SFM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
Industry RankSector Rank
PE 15.42
Fwd PE 14.55
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

  • 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 RankSector Rank
P/FCF 16.53
EV/EBITDA 8.93
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 SFM does not grow enough to justify the current Price/Earnings ratio.
  • SFM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.57
PEG (5Y)0.92
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

  • SFM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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SFM Fundamentals: All Metrics, Ratios and Statistics

SPROUTS FARMERS MARKET INC

NASDAQ:SFM (3/16/2026, 8:00:03 PM)

After market: 81.69 -0.04 (-0.05%)

81.73

-0.33 (-0.4%)

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 Change0.29%
Market Cap7.73B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts74.29
Price Target97.33 (19.09%)
Short Float %12.48%
Short Ratio3.87
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 15.42
Fwd PE 14.55
P/S 0.88
P/FCF 16.53
P/OCF 10.8
P/B 5.51
P/tB 9.51
EV/EBITDA 8.93
EPS(TTM)5.3
EY6.48%
EPS(NY)5.62
Fwd EY6.87%
FCF(TTM)4.95
FCFY6.05%
OCF(TTM)7.57
OCFY9.26%
SpS93.11
BVpS14.83
TBVpS8.6
PEG (NY)2.57
PEG (5Y)0.92
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 4.53
F-Score6
WACC8.88%
ROIC/WACC1.79
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 Fundamental Analysis 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.