SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM • US85208M1027
69.32 USD
+1.84 (+2.73%)
Last: Feb 23, 2026, 09:57 AM
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. SFM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SFM is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make SFM suitable for value and 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.
- SFM had positive earnings in each of the past 5 years.
- Each year in the past 5 years SFM had a positive operating cash flow.
1.2 Ratios
- SFM has a Return On Assets of 12.59%. This is amongst the best in 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 better Return On Invested Capital (15.90%) than 94.74% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SFM is significantly below the industry average of 28.36%.
- The last Return On Invested Capital (15.90%) for SFM is above the 3 year average (13.23%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- SFM's Profit Margin of 5.95% is amongst the best of the industry. SFM outperforms 89.47% of its industry peers.
- SFM's Profit Margin has improved in the last couple of years.
- SFM has a Operating Margin of 7.86%. This is amongst the best in the industry. SFM outperforms 89.47% of its industry peers.
- SFM's Operating Margin has improved in the last couple of years.
- SFM has a Gross Margin of 38.80%. This is amongst the best in the industry. SFM outperforms 84.21% of its industry peers.
- SFM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SFM is creating value.
- SFM has less shares outstanding than it did 1 year ago.
- SFM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SFM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.27 indicates that SFM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SFM (4.27) 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.
- With an excellent Debt to FCF ratio value of 0.18, SFM belongs to the best 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 has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. SFM outperforms 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.83
WACC8.68%
2.3 Liquidity
- SFM has a Current 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.
- The Current ratio of SFM (0.93) is worse than 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.
- The Quick ratio of SFM (0.44) is worse than 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.44 |
3. Growth
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.
- Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 14.08% in the last year.
- 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 11.27% 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 9.03% on average per year.
EPS Next Y9.93%
EPS Next 2Y11.45%
EPS Next 3Y11.34%
EPS Next 5Y11.27%
Revenue Next Year9.83%
Revenue Next 2Y9.72%
Revenue Next 3Y9.6%
Revenue Next 5Y9.03%
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.
- 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
- The Price/Earnings ratio is 13.08, which indicates a correct valuation of SFM.
- Based on the Price/Earnings ratio, SFM is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
- SFM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
- With a Price/Forward Earnings ratio of 11.90, the valuation of SFM can be described as very reasonable.
- SFM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SFM is cheaper than 84.21% of the companies in the same industry.
- SFM is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 73.68% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM indicates a rather cheap valuation: SFM is cheaper than 81.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
- SFM's 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.
PEG (NY)1.32
PEG (5Y)0.78
EPS Next 2Y11.45%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
- No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:SFM (2/23/2026, 9:57:49 AM)
69.32
+1.84 (+2.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners104.35%
Inst Owner Change-1.38%
Ins Owners0.45%
Ins Owner Change-0.82%
Market Cap6.75B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts74.29
Price Target120.19 (73.38%)
Short Float %11.13%
Short Ratio4.17
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)3.06%
Min EPS beat(2)2.63%
Max EPS beat(2)3.49%
EPS beat(4)4
Avg EPS beat(4)7.41%
Min EPS beat(4)2.63%
Max EPS beat(4)15.57%
EPS beat(8)8
Avg EPS beat(8)10.29%
EPS beat(12)12
Avg EPS beat(12)9.86%
EPS beat(16)16
Avg EPS beat(16)10.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.34%
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)0.18%
PT rev (1m)1.78%
PT rev (3m)-1.74%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.9 | ||
| P/S | 0.77 | ||
| P/FCF | 14.43 | ||
| P/OCF | 9.43 | ||
| P/B | 4.81 | ||
| P/tB | 8.3 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)5.3
EY7.65%
EPS(NY)5.83
Fwd EY8.41%
FCF(TTM)4.8
FCFY6.93%
OCF(TTM)7.35
OCFY10.61%
SpS90.44
BVpS14.41
TBVpS8.35
PEG (NY)1.32
PEG (5Y)0.78
Graham Number41.45
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.27 |
F-Score6
WACC8.68%
ROIC/WACC1.83
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 Y9.93%
EPS Next 2Y11.45%
EPS Next 3Y11.34%
EPS Next 5Y11.27%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y11.2%
Revenue growth 5Y6.36%
Sales Q2Q%7.64%
Revenue Next Year9.83%
Revenue Next 2Y9.72%
Revenue Next 3Y9.6%
Revenue Next 5Y9.03%
EBIT growth 1Y33.7%
EBIT growth 3Y23.26%
EBIT growth 5Y12.07%
EBIT Next Year33.66%
EBIT Next 3Y17.64%
EBIT Next 5Y14.53%
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 8 / 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 9.93% in the next year.