SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM - Nasdaq - US85208M1027 - Common Stock - Currency: USD
Overall SFM gets a fundamental rating of 6 out of 10. We evaluated SFM against 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making SFM a very profitable company, without any liquidiy or solvency issues. SFM is valued quite expensive, but it does show an excellent growth. These ratings could make SFM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
SFM had positive earnings in the past year.
In the past year SFM had a positive cash flow from operations.
In the past 5 years SFM has always been profitable.
In the past 5 years SFM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SFM (10.45%) is better than 97.50% of its industry peers.
With an excellent Return On Equity value of 28.79%, SFM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
SFM's Return On Invested Capital of 13.14% is amongst the best of the industry. SFM outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SFM is above the industry average of 7.93%.
The last Return On Invested Capital (13.14%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 28.79% | ||
| ROIC | 13.14% |
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
With an excellent Profit Margin value of 4.93%, SFM belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SFM has grown nicely.
Looking at the Operating Margin, with a value of 6.70%, SFM belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
SFM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 38.11%, SFM belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
SFM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.7% | ||
| PM (TTM) | 4.93% | ||
| GM | 38.11% |
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 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.
SFM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SFM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.20 indicates that SFM is not in any danger for bankruptcy at the moment.
SFM has a Altman-Z score of 7.20. This is amongst the best in the industry. SFM outperforms 87.50% of its industry peers.
SFM has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.02, SFM belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that SFM is not too dependend on debt financing.
SFM has a better Debt to Equity ratio (0.01) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 7.2 |
ROIC/WACC1.47
WACC8.95%
2.3 Liquidity
A Current Ratio of 0.99 indicates that SFM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.99, SFM is doing worse than 65.00% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that SFM may have some problems paying its short term obligations.
The Quick ratio of SFM (0.49) is worse than 62.50% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.83% over the past year.
SFM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.64% yearly.
The Revenue has grown by 12.90% in the past year. This is quite good.
Measured over the past years, SFM shows a small growth in Revenue. The Revenue has been growing by 6.50% on average per year.
EPS 1Y (TTM)49.83%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%61.61%
Revenue 1Y (TTM)12.9%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%18.72%
3.2 Future
Based on estimates for the next years, SFM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.33% on average per year.
SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.30% yearly.
EPS Next Y25.48%
EPS Next 2Y19.53%
EPS Next 3Y16.96%
EPS Next 5Y16.33%
Revenue Next Year12.76%
Revenue Next 2Y11.68%
Revenue Next 3Y11.01%
Revenue Next 5Y11.3%
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.
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
Based on the Price/Earnings ratio of 39.09, the valuation of SFM can be described as expensive.
SFM's Price/Earnings ratio is a bit more expensive when compared to the industry. SFM is more expensive than 65.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. SFM is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 32.38, SFM can be considered very expensive at the moment.
SFM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (20.81), we can say SFM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.09 | ||
| Fwd PE | 32.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SFM is valued a bit more expensive than 72.50% 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 | 25.58 |
4.3 Compensation for Growth
SFM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SFM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SFM's earnings are expected to grow with 16.96% in the coming years.
PEG (NY)1.53
PEG (5Y)1.59
EPS Next 2Y19.53%
EPS Next 3Y16.96%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
173.93
+2.27 (+1.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners101.43%
Inst Owner Change-0.1%
Ins Owners0.35%
Ins Owner Change1.63%
Market Cap17.08B
Analysts71
Price Target179.43 (3.16%)
Short Float %7.29%
Short Ratio4.04
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)11.73%
Min EPS beat(2)6.62%
Max EPS beat(2)16.84%
EPS beat(4)4
Avg EPS beat(4)13.18%
Min EPS beat(4)6.62%
Max EPS beat(4)18.87%
EPS beat(8)8
Avg EPS beat(8)11.08%
EPS beat(12)12
Avg EPS beat(12)11.52%
EPS beat(16)16
Avg EPS beat(16)13.46%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)0.72%
Max Revenue beat(2)2.68%
Revenue beat(4)4
Avg Revenue beat(4)1.61%
Min Revenue beat(4)0.72%
Max Revenue beat(4)2.68%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)5
Avg Revenue beat(12)0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.6%
PT rev (1m)-0.26%
PT rev (3m)30.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.06%
EPS NY rev (1m)0%
EPS NY rev (3m)11.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.09 | ||
| Fwd PE | 32.38 | ||
| P/S | 2.21 | ||
| P/FCF | 41.16 | ||
| P/OCF | 26.47 | ||
| P/B | 12.92 | ||
| P/tB | 23.33 | ||
| EV/EBITDA | 25.58 |
EPS(TTM)4.45
EY2.56%
EPS(NY)5.37
Fwd EY3.09%
FCF(TTM)4.23
FCFY2.43%
OCF(TTM)6.57
OCFY3.78%
SpS78.62
BVpS13.46
TBVpS7.46
PEG (NY)1.53
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 28.79% | ||
| ROCE | 17.48% | ||
| ROIC | 13.14% | ||
| ROICexc | 14.44% | ||
| ROICexgc | 18.48% | ||
| OM | 6.7% | ||
| PM (TTM) | 4.93% | ||
| GM | 38.11% | ||
| FCFM | 5.37% |
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%
ROICexcg growth 3Y5.31%
ROICexcg 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-Score8
Asset Turnover2.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 164.36% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 103.31 | ||
| Cash Conversion | 98.12% | ||
| Profit Quality | 109% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 7.2 |
F-Score8
WACC8.95%
ROIC/WACC1.47
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)49.83%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%61.61%
EPS Next Y25.48%
EPS Next 2Y19.53%
EPS Next 3Y16.96%
EPS Next 5Y16.33%
Revenue 1Y (TTM)12.9%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%18.72%
Revenue Next Year12.76%
Revenue Next 2Y11.68%
Revenue Next 3Y11.01%
Revenue Next 5Y11.3%
EBIT growth 1Y32.82%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year54.57%
EBIT Next 3Y23.74%
EBIT Next 5Y19.68%
FCF growth 1Y73.02%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y38.74%
OCF growth 3Y20.93%
OCF growth 5Y12.68%