SPROUTS FARMERS MARKET INC (SFM) Fundamental Analysis & Valuation

NASDAQ:SFM • US85208M1027

76.285 USD
-1.7 (-2.19%)
Last: Mar 4, 2026, 10:17 AM
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This SFM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

SFM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 38 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 not valued too expensively and it also shows a decent growth rate. With these ratings, SFM could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

9

1. SFM Profitability Analysis

1.1 Basic Checks

  • In the past year SFM was profitable.
  • SFM had a positive operating cash flow in the past year.
  • Each year in the past 5 years SFM has been profitable.
  • In the past 5 years SFM always reported a positive cash flow from operatings.
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

  • SFM has a Return On Assets of 12.59%. This is amongst the best in the industry. SFM outperforms 89.47% of its industry peers.
  • SFM has a better Return On Equity (37.32%) than 92.11% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.90%, SFM belongs to the best of the industry, outperforming 94.74% 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 28.42%.
  • The 3 year average ROIC (13.23%) for SFM is below the current ROIC(15.90%), indicating increased profibility in the last year.
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

  • With an excellent Profit Margin value of 5.95%, SFM belongs to the best of the industry, outperforming 89.47% 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 7.86%, SFM belongs to the top of the industry, outperforming 89.47% 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 38.80% is amongst the best of the industry. SFM outperforms 84.21% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. SFM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SFM is creating value.
  • SFM has less shares outstanding than it did 1 year ago.
  • SFM has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, SFM has a worse debt to assets ratio.
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 4.49 indicates that SFM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.49, SFM is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
  • SFM has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
  • SFM's Debt to FCF ratio of 0.18 is amongst the best of the industry. SFM outperforms 97.37% of its industry peers.
  • A Debt/Equity ratio of 0.06 indicates that SFM is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.06, SFM belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.18
Altman-Z 4.49
ROIC/WACC1.84
WACC8.66%
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.
  • With a Current ratio value of 0.93, SFM is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.44 indicates that SFM may have some problems paying its short term obligations.
  • SFM has a Quick ratio of 0.44. This is in the lower half of the industry: SFM underperforms 65.79% of 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 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • SFM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.78% yearly.
  • The Revenue has grown by 14.08% in the past year. This is quite good.
  • SFM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
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

  • SFM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.27% yearly.
  • The Revenue is expected to grow by 9.03% on average over the next years. This is quite good.
EPS Next Y9.93%
EPS Next 2Y11.45%
EPS Next 3Y11.34%
EPS Next 5Y11.27%
Revenue Next Year9.83%
Revenue Next 2Y9.72%
Revenue Next 3Y9.6%
Revenue Next 5Y9.03%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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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Find the best growth stocksShow best growing peers

5

4. SFM Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.39, SFM is valued correctly.
  • Based on the Price/Earnings ratio, SFM is valued a bit cheaper than 73.68% of the companies in the same industry.
  • SFM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • SFM is valuated correctly with a Price/Forward Earnings ratio of 13.09.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 78.95% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (24.95), we can say SFM is valued slightly cheaper.
Industry RankSector Rank
PE 14.39
Fwd PE 13.09
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 68.42% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM indicates a somewhat cheap valuation: SFM is cheaper than 73.68% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.88
EV/EBITDA 8.74
SFM Per share dataSFM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • SFM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of SFM may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)0.86
EPS Next 2Y11.45%
EPS Next 3Y11.34%

More info and screens

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

0

5. SFM Dividend Analysis

5.1 Amount

  • SFM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SFM Fundamentals: All Metrics, Ratios and Statistics

SPROUTS FARMERS MARKET INC

NASDAQ:SFM (3/4/2026, 10:17:09 AM)

76.285

-1.7 (-2.19%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-19
Earnings (Next)04-28
Inst Owners104.35%
Inst Owner Change-1.4%
Ins Owners0.45%
Ins Owner Change-0.78%
Market Cap7.43B
Revenue(TTM)8.81B
Net Income(TTM)523.67M
Analysts74.29
Price Target97.33 (27.59%)
Short Float %11.6%
Short Ratio3.83
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)-17.58%
PT rev (3m)-20.43%
EPS NQ rev (1m)-7.59%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)-3.72%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.56%
Valuation
Industry RankSector Rank
PE 14.39
Fwd PE 13.09
P/S 0.84
P/FCF 15.88
P/OCF 10.37
P/B 5.29
P/tB 9.14
EV/EBITDA 8.74
EPS(TTM)5.3
EY6.95%
EPS(NY)5.83
Fwd EY7.64%
FCF(TTM)4.8
FCFY6.3%
OCF(TTM)7.35
OCFY9.64%
SpS90.44
BVpS14.41
TBVpS8.35
PEG (NY)1.45
PEG (5Y)0.86
Graham Number41.45
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 4.49
F-Score6
WACC8.66%
ROIC/WACC1.84
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 Y9.93%
EPS Next 2Y11.45%
EPS Next 3Y11.34%
EPS Next 5Y11.27%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y11.2%
Revenue growth 5Y6.36%
Sales Q2Q%7.64%
Revenue Next Year9.83%
Revenue Next 2Y9.72%
Revenue Next 3Y9.6%
Revenue Next 5Y9.03%
EBIT growth 1Y33.7%
EBIT growth 3Y23.26%
EBIT growth 5Y12.07%
EBIT Next Year30.84%
EBIT Next 3Y12.51%
EBIT Next 5Y14.54%
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 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 for SFM stock?

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


How profitable is SPROUTS FARMERS MARKET INC (SFM) stock?

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


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 9.93% in the next year.