SPROUTS FARMERS MARKET INC (SFM)
US85208M1027 - Common Stock
Overall SFM gets a fundamental rating of 6 out of 10. We evaluated SFM against 41 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. While showing a medium growth rate, SFM is valued expensive at the moment. With these ratings, SFM could be worth investigating further 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.
SFM had positive earnings in each of the past 5 years.
In the past 5 years SFM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SFM (9.79%) is better than 92.68% of its industry peers.
SFM's Return On Equity of 26.13% is amongst the best of the industry. SFM outperforms 82.93% of its industry peers.
SFM has a Return On Invested Capital of 12.18%. This is in the better half of the industry: SFM outperforms 78.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SFM is in line with the industry average of 9.18%.
The 3 year average ROIC (10.65%) for SFM is below the current ROIC(12.18%), indicating increased profibility in the last year.
| 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's Profit Margin of 4.73% is amongst the best of the industry. SFM outperforms 95.12% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
SFM has a Operating Margin of 6.49%. This is amongst the best in the industry. SFM outperforms 92.68% of its industry peers.
In the last couple of years the Operating Margin of SFM has grown nicely.
SFM has a better Gross Margin (37.75%) than 90.24% of its industry peers.
SFM's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SFM is still creating some 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 6.57. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM's Altman-Z score of 6.57 is amongst the best of the industry. SFM outperforms 90.24% 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 95.12% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that SFM is not too dependend on debt financing.
SFM's Debt to Equity ratio of 0.01 is amongst the best of the industry. SFM outperforms 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 6.57 |
ROIC/WACC1.36
WACC8.97%
2.3 Liquidity
SFM has a Current Ratio of 1.13. This is a normal value and indicates that SFM is financially healthy and should not expect problems in meeting its short term obligations.
SFM has a Current ratio (1.13) which is in line with its industry peers.
A Quick Ratio of 0.59 indicates that SFM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, SFM is in line with its industry, outperforming 56.10% 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 | 1.13 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.36% over the past year.
The Earnings Per Share has been growing by 17.20% on average over the past years. This is quite good.
The Revenue has grown by 10.52% in the past year. This is quite good.
The Revenue has been growing slightly by 5.60% on average over the past years.
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
SFM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.19% yearly.
The Revenue is expected to grow by 7.97% on average over the next years.
EPS Next Y31.69%
EPS Next 2Y22.39%
EPS Next 3Y18.9%
EPS Next 5Y4.19%
Revenue Next Year12.35%
Revenue Next 2Y11.32%
Revenue Next 3Y11%
Revenue Next 5Y7.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 42.16, SFM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SFM indicates a slightly more expensive valuation: SFM is more expensive than 65.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (28.65), we can say SFM is valued slightly more expensively.
A Price/Forward Earnings ratio of 34.41 indicates a quite expensive valuation of SFM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SFM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (23.56), we can say SFM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.16 | ||
| Fwd PE | 34.41 |
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 70.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.16 | ||
| EV/EBITDA | 22.54 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SFM may justify a higher PE ratio.
SFM's earnings are expected to grow with 18.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)2.45
EPS Next 2Y22.39%
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 (11/21/2024, 4:02:14 PM)
After market: 145.89 0 (0%)145.89
+3.14 (+2.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.16 | ||
| Fwd PE | 34.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.33
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 26.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.49% | ||
| PM (TTM) | 4.73% | ||
| GM | 37.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.36%
EPS 3Y5.07%
EPS 5Y
EPS Q2Q%
EPS Next Y31.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.52%
Revenue growth 3Y1.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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