SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
78.8 USD
+0.96 (+1.23%)
78.8 USD
0 (0%)
Taking everything into account, SFM scores 7 out of 10 in our fundamental rating. SFM was compared to 39 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 is evaluated to be cheap and growing strongly. This does not happen too often! This makes SFM very considerable for value and 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.
SFM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SFM's Return On Assets of 12.79% is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
SFM's Return On Equity of 35.79% is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
SFM has a Return On Invested Capital of 15.78%. This is amongst the best in the industry. SFM outperforms 94.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SFM is above the industry average of 8.75%.
The last Return On Invested Capital (15.78%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 35.79% | ||
| ROIC | 15.78% |
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's Profit Margin of 5.93% is amongst the best of the industry. SFM outperforms 89.74% of its industry peers.
In the last couple of years the Profit Margin of SFM has grown nicely.
SFM's Operating Margin of 7.84% is amongst the best of the industry. SFM outperforms 92.31% of its industry peers.
SFM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 38.83%, SFM belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Gross Margin of SFM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.84% | ||
| PM (TTM) | 5.93% | ||
| GM | 38.83% |
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) well above the Cost of Capital (WACC), SFM is creating 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
SFM has an Altman-Z score of 4.73. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM has a better Altman-Z score (4.73) than 66.67% of its industry peers.
The Debt to FCF ratio of SFM is 0.12, which is an excellent value as it means it would take SFM, only 0.12 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.12, SFM belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that SFM is not too dependend on debt financing.
The Debt to Equity ratio of SFM (0.04) is better than 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.81
WACC8.72%
2.3 Liquidity
SFM has a Current Ratio of 1.05. This is a normal value and indicates that SFM is financially healthy and should not expect problems in meeting its short term obligations.
SFM has a Current ratio of 1.05. This is comparable to the rest of the industry: SFM outperforms 46.15% of its industry peers.
SFM has a Quick Ratio of 1.05. 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 has a Quick ratio of 0.53. This is comparable to the rest of the industry: SFM outperforms 48.72% 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 | 1.05 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.42%, 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.
Looking at the last year, SFM shows a quite strong growth in Revenue. The Revenue has grown by 16.60% in the last year.
SFM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.50% yearly.
EPS 1Y (TTM)49.42%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%34.07%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%13.09%
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 16.29% yearly.
The Revenue is expected to grow by 10.91% on average over the next years. This is quite good.
EPS Next Y41.53%
EPS Next 2Y24.73%
EPS Next 3Y20.61%
EPS Next 5Y16.29%
Revenue Next Year14.88%
Revenue Next 2Y12.54%
Revenue Next 3Y11.31%
Revenue Next 5Y10.91%
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.
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
A Price/Earnings ratio of 15.24 indicates a correct valuation of SFM.
76.92% of the companies in the same industry are more expensive than SFM, based on the Price/Earnings ratio.
SFM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.06.
A Price/Forward Earnings ratio of 13.47 indicates a correct valuation of SFM.
Based on the Price/Forward Earnings ratio, SFM is valued a bit cheaper than 74.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SFM to the average of the S&P500 Index (32.73), we can say SFM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
SFM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SFM is cheaper than 64.10% of the companies in the same industry.
SFM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SFM is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 8.95 |
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.
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 20.61% in the coming years.
PEG (NY)0.37
PEG (5Y)0.62
EPS Next 2Y24.73%
EPS Next 3Y20.61%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.8
+0.96 (+1.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.26%
Inst Owner Change-0.6%
Ins Owners0.45%
Ins Owner Change-3.36%
Market Cap7.70B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target163.2 (107.11%)
Short Float %7.59%
Short Ratio3.43
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)5.72%
Min EPS beat(2)3.49%
Max EPS beat(2)7.94%
EPS beat(4)4
Avg EPS beat(4)8.41%
Min EPS beat(4)3.49%
Max EPS beat(4)15.57%
EPS beat(8)8
Avg EPS beat(8)10.9%
EPS beat(12)12
Avg EPS beat(12)10.69%
EPS beat(16)16
Avg EPS beat(16)10.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.26%
Revenue beat(8)6
Avg Revenue beat(8)0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.47%
Revenue beat(16)8
Avg Revenue beat(16)0.29%
PT rev (1m)-13.51%
PT rev (3m)-13.51%
EPS NQ rev (1m)-11.09%
EPS NQ rev (3m)-10.03%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-4.19%
Revenue NQ rev (3m)-4.06%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.47 | ||
| P/S | 0.89 | ||
| P/FCF | 16.83 | ||
| P/OCF | 10.97 | ||
| P/B | 5.37 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)5.17
EY6.56%
EPS(NY)5.85
Fwd EY7.42%
FCF(TTM)4.68
FCFY5.94%
OCF(TTM)7.19
OCFY9.12%
SpS88.55
BVpS14.68
TBVpS8.64
PEG (NY)0.37
PEG (5Y)0.62
Graham Number41.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 35.79% | ||
| ROCE | 20.99% | ||
| ROIC | 15.78% | ||
| ROICexc | 17.53% | ||
| ROICexgc | 21.99% | ||
| OM | 7.84% | ||
| PM (TTM) | 5.93% | ||
| GM | 38.83% | ||
| FCFM | 5.29% |
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%
ROICexgc growth 3Y5.31%
ROICexgc 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-Score7
Asset Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 160.73% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 401.75 | ||
| Cash Conversion | 84.57% | ||
| Profit Quality | 89.12% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 4.73 |
F-Score7
WACC8.72%
ROIC/WACC1.81
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)49.42%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%34.07%
EPS Next Y41.53%
EPS Next 2Y24.73%
EPS Next 3Y20.61%
EPS Next 5Y16.29%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%13.09%
Revenue Next Year14.88%
Revenue Next 2Y12.54%
Revenue Next 3Y11.31%
Revenue Next 5Y10.91%
EBIT growth 1Y40.74%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year70.05%
EBIT Next 3Y29.2%
EBIT Next 5Y19.36%
FCF growth 1Y72.54%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y48.33%
OCF growth 3Y20.93%
OCF growth 5Y12.68%
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 of SPROUTS FARMERS MARKET INC (SFM) stock?
ChartMill assigns a valuation rating of 7 / 10 to SPROUTS FARMERS MARKET INC (SFM). This can be considered as Undervalued.
How profitable is SPROUTS FARMERS MARKET INC (SFM) stock?
SPROUTS FARMERS MARKET INC (SFM) has a profitability rating of 9 / 10.
What are the PE and PB ratios of SPROUTS FARMERS MARKET INC (SFM) stock?
The Price/Earnings (PE) ratio for SPROUTS FARMERS MARKET INC (SFM) is 15.24 and the Price/Book (PB) ratio is 5.37.