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Why SPROUTS FARMERS MARKET INC (NASDAQ:SFM) qualifies as a quality stock.

By Mill Chart

Last update: Dec 6, 2023

In this article we will dive into SPROUTS FARMERS MARKET INC (NASDAQ:SFM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SPROUTS FARMERS MARKET INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Exploring Why NASDAQ:SFM Holds Appeal for Quality Investors.

  • Over the past 5 years, SPROUTS FARMERS MARKET INC has experienced impressive revenue growth, with 6.54% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 15.18%, SPROUTS FARMERS MARKET INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • SPROUTS FARMERS MARKET INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.6, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • The Profit Quality (5-year) of SPROUTS FARMERS MARKET INC stands at 104.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • SPROUTS FARMERS MARKET INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 10.21%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, SPROUTS FARMERS MARKET INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NASDAQ:SFM

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to SFM. SFM was compared to 43 industry peers in the Consumer Staples Distribution & Retail industry. SFM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SFM has a correct valuation and a medium growth rate.

Check the latest full fundamental report of SFM for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:SFM (2/22/2024, 3:30:02 PM)

After market: 55 +1.24 (+2.31%)


+1.13 (+2.15%)

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