SPROUTS FARMERS MARKET INC (SFM) Fundamental Analysis & Valuation

NASDAQ:SFM • US85208M1027

Current stock price

77.17 USD
+1.15 (+1.51%)
At close:
77.17 USD
0 (0%)
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.
  • SFM had a positive operating cash flow in the past year.
  • Each year in the past 5 years SFM has been profitable.
  • SFM had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of SFM (12.59%) is better than 94.59% of its industry peers.
  • With an excellent Return On Equity value of 37.32%, SFM belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 15.90%, SFM belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for SFM is significantly below the industry average of 34.77%.
  • 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 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

  • SFM's Profit Margin of 5.95% is amongst the best of the industry. SFM outperforms 86.49% 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 89.19% of its industry peers.
  • SFM's Operating Margin has improved in the last couple of years.
  • SFM has a better Gross Margin (38.80%) than 86.49% of its industry peers.
  • 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.
  • 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
  • SFM has a worse debt/assets ratio than last year.
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 4.40 indicates that SFM is not in any danger for bankruptcy at the moment.
  • With a Altman-Z score value of 4.40, SFM perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
  • The Debt to FCF ratio of SFM is 0.18, which is an excellent value as it means it would take SFM, only 0.18 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of SFM (0.18) is better than 94.59% of its industry peers.
  • A Debt/Equity ratio of 0.06 indicates that SFM is not too dependend on debt financing.
  • With an excellent Debt to Equity ratio value of 0.06, SFM belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.18
Altman-Z 4.4
ROIC/WACC1.78
WACC8.91%
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 worse Current ratio (0.93) than 70.27% of its industry peers.
  • A Quick Ratio of 0.44 indicates that SFM may have some problems paying its short term obligations.
  • The Quick ratio of SFM (0.44) is worse than 67.57% 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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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.
  • 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

  • The Earnings Per Share is expected to grow by 9.87% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.22% on average over the next years. This is quite good.
EPS Next Y6.01%
EPS Next 2Y6.46%
EPS Next 3Y8.21%
EPS Next 5Y9.87%
Revenue Next Year7.91%
Revenue Next 2Y7.68%
Revenue Next 3Y8.23%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.56, which indicates a correct valuation of SFM.
  • 78.38% of the companies in the same industry are more expensive than SFM, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.78. SFM is valued slightly cheaper when compared to this.
  • SFM is valuated correctly with a Price/Forward Earnings ratio of 13.73.
  • Based on the Price/Forward Earnings ratio, SFM is valued a bit cheaper than 78.38% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.54. SFM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.56
Fwd PE 13.73
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 67.57% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, SFM is valued a bit cheaper than 72.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.6
EV/EBITDA 8.26
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 an expensive valuation of the company.
  • SFM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)0.87
EPS Next 2Y6.46%
EPS Next 3Y8.21%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SFM Dividend Analysis

5.1 Amount

  • No dividends for SFM!.
Industry RankSector Rank
Dividend Yield 0%

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SFM Fundamentals: All Metrics, Ratios and Statistics

SPROUTS FARMERS MARKET INC

NASDAQ:SFM (4/10/2026, 8:00:02 PM)

After market: 77.17 0 (0%)

77.17

+1.15 (+1.51%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners102.44%
Inst Owner Change0%
Ins Owners0.46%
Ins Owner Change12.09%
Market Cap7.30B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts73.64
Price Target96.65 (25.24%)
Short Float %11.67%
Short Ratio3.6
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)-0.7%
PT rev (3m)-20.99%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-8.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.78%
Valuation
Industry RankSector Rank
PE 14.56
Fwd PE 13.73
P/S 0.83
P/FCF 15.6
P/OCF 10.19
P/B 5.2
P/tB 8.98
EV/EBITDA 8.26
EPS(TTM)5.3
EY6.87%
EPS(NY)5.62
Fwd EY7.28%
FCF(TTM)4.95
FCFY6.41%
OCF(TTM)7.57
OCFY9.81%
SpS93.11
BVpS14.83
TBVpS8.6
PEG (NY)2.42
PEG (5Y)0.87
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 4.4
F-Score6
WACC8.91%
ROIC/WACC1.78
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 Year7.91%
Revenue Next 2Y7.68%
Revenue Next 3Y8.23%
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.


Can you provide the valuation status for SPROUTS FARMERS MARKET INC?

ChartMill assigns a valuation rating of 5 / 10 to SPROUTS FARMERS MARKET INC (SFM). This can be considered as Fairly Valued.


Can you provide the profitability details for SPROUTS FARMERS MARKET INC?

SPROUTS FARMERS MARKET INC (SFM) has a profitability rating of 9 / 10.


What are the PE and PB ratios of SPROUTS FARMERS MARKET INC (SFM) stock?

The Price/Earnings (PE) ratio for SPROUTS FARMERS MARKET INC (SFM) is 14.56 and the Price/Book (PB) ratio is 5.2.


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.