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 41 industry peers in the Consumer Staples Distribution & Retail industry. SFM gets an excellent profitability rating and is at the same time showing great financial health properties. SFM is valued quite expensively, but it does show have an excellent growth rating. These ratings could make SFM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year SFM was profitable.
In the past year SFM had a positive cash flow from operations.
SFM had positive earnings in each of the past 5 years.
Each year in the past 5 years SFM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.94%, SFM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 34.67%, SFM belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
SFM has a Return On Invested Capital of 15.09%. This is amongst the best in the industry. SFM outperforms 95.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SFM is above the industry average of 8.08%.
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
With an excellent Profit Margin value of 5.53%, SFM belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Profit Margin of SFM has grown nicely.
SFM has a better Operating Margin (7.37%) than 95.12% of its industry peers.
In the last couple of years the Operating Margin of SFM has grown nicely.
The Gross Margin of SFM (38.47%) is better than 85.37% 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) below the Cost of Capital (WACC), SFM is destroying value.
SFM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SFM has less shares outstanding
The debt/assets ratio for SFM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.86 indicates that SFM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.86, SFM belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
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.
The Debt to FCF ratio of SFM (0.02) is better than 97.56% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that SFM is not too dependend on debt financing.
SFM's Debt to Equity ratio of 0.01 is amongst the best of the industry. SFM outperforms 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.86 |
ROIC/WACC0.94
WACC15.98%
2.3 Liquidity
A Current Ratio of 0.95 indicates that SFM may have some problems paying its short term obligations.
SFM's Current ratio of 0.95 is on the low side compared to the rest of the industry. SFM is outperformed by 70.73% of its industry peers.
A Quick Ratio of 0.51 indicates that SFM may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, SFM perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.83%, which is quite impressive.
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 15.51% 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)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 16.33% on average over the next years. This is quite good.
Based on estimates for the next years, SFM will show a quite strong growth in Revenue. The Revenue will grow by 11.30% on average per year.
EPS Next Y36.91%
EPS Next 2Y24.14%
EPS Next 3Y19.88%
EPS Next 5Y16.33%
Revenue Next Year14.2%
Revenue Next 2Y12.61%
Revenue Next 3Y11.55%
Revenue Next 5Y11.3%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.84, SFM can be considered very expensive at the moment.
60.98% of the companies in the same industry are cheaper than SFM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. SFM is valued slightly more expensive when compared to this.
SFM is valuated quite expensively with a Price/Forward Earnings ratio of 29.83.
The rest of the industry has a similar Price/Forward Earnings ratio as SFM.
SFM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.84 | ||
| Fwd PE | 29.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SFM is valued a bit more expensive than the industry average as 73.17% of the companies are valued more cheaply.
SFM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.81 | ||
| EV/EBITDA | 21.84 |
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.
SFM's earnings are expected to grow with 19.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)1.58
EPS Next 2Y24.14%
EPS Next 3Y19.88%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
172.86
+5.43 (+3.24%)
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 Change0.36%
Ins Owners0.35%
Ins Owner Change0.74%
Market Cap16.92B
Analysts71
Price Target188.79 (9.22%)
Short Float %6.61%
Short Ratio3.8
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)4.95%
PT rev (3m)27.49%
EPS NQ rev (1m)7.38%
EPS NQ rev (3m)13.22%
EPS NY rev (1m)9.11%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.84 | ||
| Fwd PE | 29.83 | ||
| P/S | 2.1 | ||
| P/FCF | 34.81 | ||
| P/OCF | 23.35 | ||
| P/B | 13.13 | ||
| P/tB | 24.23 | ||
| EV/EBITDA | 21.84 |
EPS(TTM)4.45
EY2.57%
EPS(NY)5.79
Fwd EY3.35%
FCF(TTM)4.97
FCFY2.87%
OCF(TTM)7.4
OCFY4.28%
SpS82.48
BVpS13.16
TBVpS7.13
PEG (NY)1.05
PEG (5Y)1.58
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 | 6.86 |
F-Score8
WACC15.98%
ROIC/WACC0.94
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 Y36.91%
EPS Next 2Y24.14%
EPS Next 3Y19.88%
EPS Next 5Y16.33%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%18.72%
Revenue Next Year14.2%
Revenue Next 2Y12.61%
Revenue Next 3Y11.55%
Revenue Next 5Y11.3%
EBIT growth 1Y45.13%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year63.76%
EBIT Next 3Y26.28%
EBIT Next 5Y19.68%
FCF growth 1Y91.11%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y82.02%
OCF growth 3Y20.93%
OCF growth 5Y12.68%