85.54 USD
+0.29 (+0.34%)
85.696 USD
+0.16 (+0.18%)
SFM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 39 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. SFM has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make SFM a good candidate for value and growth 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
Looking at the Return On Assets, with a value of 12.79%, SFM belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
SFM's Return On Equity of 35.79% is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
The Return On Invested Capital of SFM (15.78%) is better than 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SFM is above the industry average of 8.81%.
The 3 year average ROIC (11.53%) for SFM is below the current ROIC(15.78%), indicating increased profibility in the last year.
| 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
SFM has a better Profit Margin (5.93%) than 89.74% of its industry peers.
In the last couple of years the Profit Margin of SFM has grown nicely.
Looking at the Operating Margin, with a value of 7.84%, SFM belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of SFM has grown nicely.
SFM's Gross Margin of 38.83% is amongst the best of the industry. SFM outperforms 84.62% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SFM is creating value.
Compared to 1 year ago, SFM has less shares outstanding
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
An Altman-Z score of 4.87 indicates that SFM is not in any danger for bankruptcy at the moment.
SFM has a Altman-Z score of 4.87. This is in the better half of the industry: SFM outperforms 74.36% of its industry peers.
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 94.87% 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.
The Debt to Equity ratio of SFM (0.04) is better than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.87 |
ROIC/WACC1.8
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.05 indicates that SFM should not have too much problems paying its short term obligations.
SFM has a Current ratio (1.05) which is comparable to the rest of the industry.
SFM has a Quick Ratio of 1.05. 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 has a Quick ratio (0.53) which is in line with its industry peers.
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.
SFM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.64% yearly.
Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 16.60% in the last year.
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
The Earnings Per Share is expected to grow by 16.28% 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 10.63% on average per year.
EPS Next Y41.53%
EPS Next 2Y24.33%
EPS Next 3Y20.39%
EPS Next 5Y16.28%
Revenue Next Year14.66%
Revenue Next 2Y12.23%
Revenue Next 3Y11.35%
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 16.55, which indicates a correct valuation of SFM.
Based on the Price/Earnings ratio, SFM is valued a bit cheaper than 69.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. SFM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.72 indicates a correct valuation of SFM.
Based on the Price/Forward Earnings ratio, SFM is valued a bit cheaper than 64.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, SFM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
SFM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SFM is cheaper than 66.67% of the companies in the same industry.
SFM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SFM is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.2 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as SFM's earnings are expected to grow with 20.39% in the coming years.
PEG (NY)0.4
PEG (5Y)0.67
EPS Next 2Y24.33%
EPS Next 3Y20.39%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.54
+0.29 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.02%
Inst Owner Change1.65%
Ins Owners0.45%
Ins Owner Change-2.03%
Market Cap8.33B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target122.32 (43%)
Short Float %8.45%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-25.05%
PT rev (3m)-35.18%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-10.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 14.72 | ||
| P/S | 0.96 | ||
| P/FCF | 18.2 | ||
| P/OCF | 11.86 | ||
| P/B | 5.81 | ||
| P/tB | 9.86 | ||
| EV/EBITDA | 9.71 |
EPS(TTM)5.17
EY6.04%
EPS(NY)5.81
Fwd EY6.8%
FCF(TTM)4.7
FCFY5.49%
OCF(TTM)7.21
OCFY8.43%
SpS88.87
BVpS14.73
TBVpS8.67
PEG (NY)0.4
PEG (5Y)0.67
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 | 4.87 |
F-Score7
WACC8.75%
ROIC/WACC1.8
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 Y41.53%
EPS Next 2Y24.33%
EPS Next 3Y20.39%
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 2Y12.23%
Revenue Next 3Y11.35%
Revenue Next 5Y10.63%
EBIT growth 1Y40.74%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year67.74%
EBIT Next 3Y25.7%
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 7 / 10 to SFM.
What is the valuation status of SPROUTS FARMERS MARKET INC (SFM) stock?
ChartMill assigns a valuation rating of 7 / 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 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 16.55 and the Price/Book (PB) ratio is 5.81.