SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM - Nasdaq - US85208M1027 - Common Stock - Currency: USD
Taking everything into account, SFM scores 7 out of 10 in our fundamental rating. SFM was compared to 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 shows excellent growth, but is valued quite expensive already. These ratings would make SFM suitable 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.
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.
1.2 Ratios
SFM's Return On Assets of 11.94% is amongst the best of the industry. SFM outperforms 97.56% of its industry peers.
SFM has a Return On Equity of 34.67%. This is amongst the best in the industry. SFM outperforms 92.68% of its industry peers.
SFM has a better Return On Invested Capital (15.09%) than 97.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SFM is above the industry average of 7.97%.
The 3 year average ROIC (11.53%) for SFM is below the current ROIC(15.09%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.53%, SFM belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
SFM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 7.37%, SFM belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Operating Margin of SFM has grown nicely.
SFM has a better Gross Margin (38.47%) than 85.37% of its industry peers.
In the last couple of years the Gross Margin of SFM has grown nicely.
| 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
SFM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
SFM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.83 indicates that SFM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.83, SFM belongs to the best of the industry, outperforming 87.80% 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.
SFM's Debt to FCF ratio of 0.02 is amongst the best of the industry. SFM outperforms 97.56% of its industry peers.
SFM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.01, SFM belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.83 |
ROIC/WACC1.68
WACC9%
2.3 Liquidity
SFM has a Current Ratio of 0.95. 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'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.
The Quick ratio of SFM (0.51) is comparable to the rest of the 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
The Earnings Per Share has grown by an impressive 49.83% over the past year.
Measured over the past years, SFM shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.64% on average per year.
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
SFM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.19% yearly.
The Revenue is expected to grow by 10.98% on average over the next years. This is quite good.
EPS Next Y36.91%
EPS Next 2Y24.13%
EPS Next 3Y19.88%
EPS Next 5Y17.19%
Revenue Next Year14.2%
Revenue Next 2Y12.61%
Revenue Next 3Y11.55%
Revenue Next 5Y10.98%
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
SFM is valuated quite expensively with a Price/Earnings ratio of 37.29.
SFM's Price/Earnings ratio is a bit more expensive when compared to the industry. SFM is more expensive than 63.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of SFM to the average of the S&P500 Index (26.34), we can say SFM is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.64, SFM can be considered very expensive at the moment.
SFM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (21.03), we can say SFM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.29 | ||
| Fwd PE | 28.64 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as SFM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.42 | ||
| EV/EBITDA | 21.64 |
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 19.88% in the coming years.
PEG (NY)1.01
PEG (5Y)1.51
EPS Next 2Y24.13%
EPS Next 3Y19.88%
5. Dividend
5.1 Amount
SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
165.96
+4.1 (+2.53%)
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 Change0.38%
Ins Owners0.47%
Ins Owner Change2.58%
Market Cap16.24B
Analysts72
Price Target190.18 (14.59%)
Short Float %7.6%
Short Ratio4.17
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)0.74%
PT rev (3m)9.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.44%
EPS NY rev (1m)0%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.29 | ||
| Fwd PE | 28.64 | ||
| P/S | 2.01 | ||
| P/FCF | 33.42 | ||
| P/OCF | 22.41 | ||
| P/B | 12.61 | ||
| P/tB | 23.27 | ||
| EV/EBITDA | 21.64 |
EPS(TTM)4.45
EY2.68%
EPS(NY)5.79
Fwd EY3.49%
FCF(TTM)4.97
FCFY2.99%
OCF(TTM)7.4
OCFY4.46%
SpS82.48
BVpS13.16
TBVpS7.13
PEG (NY)1.01
PEG (5Y)1.51
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 | 6.83 |
F-Score8
WACC9%
ROIC/WACC1.68
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 2Y24.13%
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 2Y12.61%
Revenue Next 3Y11.55%
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%