SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM • US85208M1027
68.96 USD
+1.33 (+1.97%)
At close: Feb 13, 2026
69.4 USD
+0.44 (+0.64%)
After Hours: 2/13/2026, 8:00:01 PM
SFM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 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. SFM is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make SFM a good candidate for value and 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.
- 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
- Looking at the Return On Assets, with a value of 12.79%, SFM belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- SFM has a Return On Equity of 35.79%. This is amongst the best in the industry. SFM outperforms 92.11% of its industry peers.
- SFM has a better Return On Invested Capital (15.78%) 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 28.26%.
- The last Return On Invested Capital (15.78%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| 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.
- SFM has a Operating Margin of 7.84%. 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 better Gross Margin (38.83%) than 84.21% of its industry peers.
- 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.
- SFM has less shares outstanding than it did 1 year ago.
- SFM has less shares outstanding than it did 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 4.47. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of SFM (4.47) is comparable to the rest of the industry.
- SFM has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
- SFM's Debt to FCF ratio of 0.12 is amongst the best of the industry. SFM outperforms 97.37% of its industry peers.
- SFM has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.04, 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 | 4.47 |
ROIC/WACC1.83
WACC8.64%
2.3 Liquidity
- SFM has a Current Ratio of 1.05. This is a normal value and indicates that SFM is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of SFM (1.05) is worse than 60.53% of its industry peers.
- A Quick Ratio of 0.53 indicates that SFM may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.53, SFM is in line with its industry, outperforming 47.37% of the companies in the same industry.
- The current and quick ratio evaluation for SFM is rather negative, while it does have 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.
- The Earnings Per Share has been growing by 24.64% on average over the past years. This is a very strong growth
- The Revenue has grown by 16.60% in the past year. This is quite good.
- 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
- Based on estimates for the next years, SFM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.28% on average per year.
- SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y41.52%
EPS Next 2Y24.48%
EPS Next 3Y20.52%
EPS Next 5Y16.28%
Revenue Next Year14.66%
Revenue Next 2Y12.38%
Revenue Next 3Y11.49%
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.
- 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 13.34, which indicates a correct valuation of SFM.
- 81.58% of the companies in the same industry are more expensive than SFM, based on the Price/Earnings ratio.
- SFM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.97.
- The Price/Forward Earnings ratio is 11.84, which indicates a very decent valuation of SFM.
- Based on the Price/Forward Earnings ratio, SFM is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (27.96), we can say SFM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SFM is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SFM is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.67 | ||
| EV/EBITDA | 7.61 |
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 20.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.54
EPS Next 2Y24.48%
EPS Next 3Y20.52%
5. Dividend
5.1 Amount
- No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.96
+1.33 (+1.97%)
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)02-19 2026-02-19/amc
Inst Owners104.35%
Inst Owner Change-1.96%
Ins Owners0.45%
Ins Owner Change-1.43%
Market Cap6.71B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts74.29
Price Target120.19 (74.29%)
Short Float %9.21%
Short Ratio3.66
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)-1.74%
PT rev (3m)-26.35%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 11.84 | ||
| P/S | 0.78 | ||
| P/FCF | 14.67 | ||
| P/OCF | 9.56 | ||
| P/B | 4.68 | ||
| P/tB | 7.95 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)5.17
EY7.5%
EPS(NY)5.83
Fwd EY8.45%
FCF(TTM)4.7
FCFY6.81%
OCF(TTM)7.21
OCFY10.46%
SpS88.87
BVpS14.73
TBVpS8.67
PEG (NY)0.32
PEG (5Y)0.54
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 | 4.47 |
F-Score7
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)49.42%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%34.07%
EPS Next Y41.52%
EPS Next 2Y24.48%
EPS Next 3Y20.52%
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 2Y12.38%
Revenue Next 3Y11.49%
Revenue Next 5Y10.63%
EBIT growth 1Y40.74%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year67.58%
EBIT Next 3Y25.95%
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 8 / 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 41.52% in the next year.