SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM - Nasdaq - US85208M1027 - Common Stock - Currency: USD
Overall SFM gets a fundamental rating of 7 out of 10. We evaluated SFM against 40 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 shows excellent growth, but is valued quite expensive already. This makes SFM very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
SFM had positive earnings in the past year.
SFM had a positive operating cash flow in the past year.
SFM had positive earnings in each of the past 5 years.
In the past 5 years SFM always reported a positive cash flow from operatings.
1.2 Ratios
SFM's Return On Assets of 11.94% is amongst the best of the industry. SFM outperforms 97.50% of its industry peers.
SFM has a better Return On Equity (34.67%) than 92.50% of its industry peers.
The Return On Invested Capital of SFM (15.09%) is better than 97.50% of its industry peers.
SFM had an Average Return On Invested Capital over the past 3 years of 11.53%. This is above the industry average of 8.23%.
The last Return On Invested Capital (15.09%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 34.67% | ||
| ROIC | 15.09% |
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 (5.53%) than 92.50% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
The Operating Margin of SFM (7.37%) is better than 92.50% of its industry peers.
SFM's Operating Margin has improved in the last couple of years.
SFM's Gross Margin of 38.47% is amongst the best of the industry. SFM outperforms 85.00% of its industry peers.
SFM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.37% | ||
| PM (TTM) | 5.53% | ||
| GM | 38.47% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SFM is creating some value.
The number of shares outstanding for SFM has been reduced compared to 1 year ago.
The number of shares outstanding for SFM has been reduced compared to 5 years ago.
Compared to 1 year ago, SFM has an improved debt to assets ratio.
2.2 Solvency
SFM has an Altman-Z score of 6.68. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM has a better Altman-Z score (6.68) than 87.50% of its industry peers.
The Debt to FCF ratio of SFM is 0.02, which is an excellent value as it means it would take SFM, only 0.02 years of fcf income to pay off all of its debts.
SFM has a better Debt to FCF ratio (0.02) than 97.50% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that SFM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, SFM belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.68 |
ROIC/WACC1.67
WACC9.05%
2.3 Liquidity
A Current Ratio of 0.95 indicates that SFM may have some problems paying its short term obligations.
With a Current ratio value of 0.95, SFM is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that SFM may have some problems paying its short term obligations.
SFM has a Quick ratio (0.51) which is comparable to the rest of the industry.
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 | 0.95 | ||
| Quick Ratio | 0.51 |
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.
Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 15.51% in the last year.
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)15.51%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%18.72%
3.2 Future
The Earnings Per Share is expected to grow by 17.19% on average over the next years. This is quite good.
SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.98% yearly.
EPS Next Y36.98%
EPS Next 2Y24.06%
EPS Next 3Y19.88%
EPS Next 5Y17.19%
Revenue Next Year14.2%
Revenue Next 2Y12.51%
Revenue Next 3Y11.42%
Revenue Next 5Y10.98%
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
Based on the Price/Earnings ratio of 35.89, the valuation of SFM can be described as expensive.
Based on the Price/Earnings ratio, SFM is valued a bit more expensive than 65.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (27.41), we can say SFM is valued slightly more expensively.
With a Price/Forward Earnings ratio of 27.60, SFM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SFM is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.19. SFM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 27.6 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than SFM, based on the Enterprise Value to EBITDA ratio.
SFM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.16 | ||
| EV/EBITDA | 20.81 |
4.3 Compensation for Growth
SFM's 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.
SFM's earnings are expected to grow with 19.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.46
EPS Next 2Y24.06%
EPS Next 3Y19.88%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
159.7
+0.98 (+0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change2.85%
Market Cap15.63B
Analysts71.58
Price Target190.18 (19.09%)
Short Float %7.46%
Short Ratio3.47
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)11.1%
Min EPS beat(2)6.62%
Max EPS beat(2)15.57%
EPS beat(4)4
Avg EPS beat(4)14.48%
Min EPS beat(4)6.62%
Max EPS beat(4)18.87%
EPS beat(8)8
Avg EPS beat(8)11.21%
EPS beat(12)12
Avg EPS beat(12)12.15%
EPS beat(16)16
Avg EPS beat(16)13.53%
Revenue beat(2)2
Avg Revenue beat(2)0.66%
Min Revenue beat(2)0.6%
Max Revenue beat(2)0.72%
Revenue beat(4)4
Avg Revenue beat(4)1.52%
Min Revenue beat(4)0.6%
Max Revenue beat(4)2.68%
Revenue beat(8)6
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0%
PT rev (3m)5.72%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)7.31%
EPS NY rev (1m)0.06%
EPS NY rev (3m)9.17%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 27.6 | ||
| P/S | 1.94 | ||
| P/FCF | 32.16 | ||
| P/OCF | 21.57 | ||
| P/B | 12.13 | ||
| P/tB | 22.39 | ||
| EV/EBITDA | 20.81 |
EPS(TTM)4.45
EY2.79%
EPS(NY)5.79
Fwd EY3.62%
FCF(TTM)4.97
FCFY3.11%
OCF(TTM)7.4
OCFY4.64%
SpS82.48
BVpS13.16
TBVpS7.13
PEG (NY)0.97
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 34.67% | ||
| ROCE | 20.06% | ||
| ROIC | 15.09% | ||
| ROICexc | 16.7% | ||
| ROICexgc | 21.41% | ||
| OM | 7.37% | ||
| PM (TTM) | 5.53% | ||
| GM | 38.47% | ||
| FCFM | 6.02% |
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 Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 167.49% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 174.83 | ||
| Cash Conversion | 98.24% | ||
| Profit Quality | 108.84% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 6.68 |
F-Score8
WACC9.05%
ROIC/WACC1.67
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 Y36.98%
EPS Next 2Y24.06%
EPS Next 3Y19.88%
EPS Next 5Y17.19%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%18.72%
Revenue Next Year14.2%
Revenue Next 2Y12.51%
Revenue Next 3Y11.42%
Revenue Next 5Y10.98%
EBIT growth 1Y45.13%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year63.76%
EBIT Next 3Y26.28%
EBIT Next 5Y19.96%
FCF growth 1Y91.11%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y82.02%
OCF growth 3Y20.93%
OCF growth 5Y12.68%