SPROUTS FARMERS MARKET INC (SFM)
US85208M1027 - Common Stock
SFM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
SFM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SFM has a Return On Assets of 7.78%. This is amongst the best in the industry. SFM outperforms 90.24% of its industry peers.
SFM has a better Return On Equity (22.54%) than 82.93% of its industry peers.
With an excellent Return On Invested Capital value of 10.51%, SFM belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SFM is in line with the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 22.54% | ||
| ROIC | 10.51% |
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 has a better Profit Margin (3.79%) than 92.68% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.70%, SFM belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
In the last couple of years the Operating Margin of SFM has grown nicely.
The Gross Margin of SFM (36.88%) is better than 90.24% of its industry peers.
In the last couple of years the Gross Margin of SFM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.7% | ||
| PM (TTM) | 3.79% | ||
| GM | 36.88% |
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
SFM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SFM has less shares outstanding
The number of shares outstanding for SFM has been reduced compared to 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 4.44. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM has a Altman-Z score of 4.44. This is in the better half of the industry: SFM outperforms 65.85% of its industry peers.
The Debt to FCF ratio of SFM is 0.56, which is an excellent value as it means it would take SFM, only 0.56 years of fcf income to pay off all of its debts.
SFM has a Debt to FCF ratio of 0.56. This is amongst the best in the industry. SFM outperforms 92.68% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that SFM is not too dependend on debt financing.
SFM has a Debt to Equity ratio of 0.12. This is amongst the best in the industry. SFM outperforms 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 4.44 |
ROIC/WACC1.15
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.10 indicates that SFM should not have too much problems paying its short term obligations.
The Current ratio of SFM (1.10) is comparable to the rest of the industry.
SFM has a Quick Ratio of 1.10. 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 (0.51) which is in line with 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.43% over the past year.
SFM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.20% yearly.
SFM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.76%.
The Revenue has been growing slightly by 5.60% on average over the past years.
EPS 1Y (TTM)18.43%
EPS 3Y5.07%
EPS 5Y17.2%
EPS growth Q2Q16.67%
Revenue 1Y (TTM)6.76%
Revenue growth 3Y1.86%
Revenue growth 5Y5.6%
Revenue growth Q2Q7.73%
3.2 Future
The Earnings Per Share is expected to grow by 6.11% on average over the next years.
Based on estimates for the next years, SFM will show a small growth in Revenue. The Revenue will grow by 7.35% on average per year.
EPS Next Y4.17%
EPS Next 2Y5.68%
EPS Next 3Y6.89%
EPS Next 5Y6.11%
Revenue Next Year7%
Revenue Next 2Y7.79%
Revenue Next 3Y8.81%
Revenue Next 5Y7.35%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.27, SFM is valued on the expensive side.
SFM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.25. SFM is around the same levels.
Based on the Price/Forward Earnings ratio of 22.34, the valuation of SFM can be described as rather expensive.
SFM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, SFM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 22.34 |
4.2 Price Multiples
SFM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 68.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.7 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SFM may justify a higher PE ratio.
PEG (NY)5.58
PEG (5Y)1.35
EPS Next 2Y5.68%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPROUTS FARMERS MARKET INC
NASDAQ:SFM (4/25/2024, 11:44:00 AM)
65.85
+0.26 (+0.4%)
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 Cap6.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 22.34 | ||
| 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)5.58
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 22.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.7% | ||
| PM (TTM) | 3.79% | ||
| GM | 36.88% | ||
| 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 Turnover2.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.51 | ||
| 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)
Growth
EPS 1Y (TTM)18.43%
EPS 3Y5.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.76%
Revenue growth 3Y1.86%
Revenue growth 5Y
Revenue growth 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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y