SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
102.74 USD
-1.31 (-1.26%)
101.84 USD
-0.9 (-0.88%)
Overall SFM gets a fundamental rating of 7 out of 10. We evaluated SFM against 39 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make SFM suitable 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.
In the past 5 years SFM has always 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 12.82% is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
SFM's Return On Equity of 35.75% is amongst the best of the industry. SFM outperforms 94.87% of its industry peers.
SFM's Return On Invested Capital of 15.85% is amongst the best of the industry. SFM outperforms 97.44% 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 8.75%.
The 3 year average ROIC (11.53%) for SFM is below the current ROIC(15.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 35.75% | ||
| ROIC | 15.85% |
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 5.77% is amongst the best of the industry. SFM outperforms 89.74% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 7.69%, SFM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
SFM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 38.69%, 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 | 7.69% | ||
| PM (TTM) | 5.77% | ||
| GM | 38.69% |
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 well above the Cost of Capital (WACC), which means it 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 5.46. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SFM (5.46) is better than 76.92% 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.
The Debt to FCF ratio of SFM (0.02) is better than 94.87% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that SFM is not too dependend on debt financing.
SFM's Debt to Equity ratio of 0.00 is amongst the best of the industry. SFM outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 5.46 |
ROIC/WACC1.83
WACC8.67%
2.3 Liquidity
A Current Ratio of 0.98 indicates that SFM may have some problems paying its short term obligations.
With a Current ratio value of 0.98, SFM is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
SFM has a Quick Ratio of 0.98. 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 worse Quick ratio (0.50) than 61.54% 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 | 0.98 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
SFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.88%, which is quite impressive.
The Earnings Per Share has been growing by 24.64% on average over the past years. This is a very strong growth
SFM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.83%.
SFM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.50% yearly.
EPS 1Y (TTM)51.88%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%43.62%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%17.27%
3.2 Future
The Earnings Per Share is expected to grow by 18.03% 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 11.14% yearly.
EPS Next Y43.14%
EPS Next 2Y28.19%
EPS Next 3Y23.36%
EPS Next 5Y18.03%
Revenue Next Year15.93%
Revenue Next 2Y13.63%
Revenue Next 3Y12.43%
Revenue Next 5Y11.14%
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
A Price/Earnings ratio of 21.14 indicates a rather expensive valuation of SFM.
Compared to the rest of the industry, the Price/Earnings ratio of SFM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.02, SFM is valued a bit cheaper.
SFM is valuated correctly with a Price/Forward Earnings ratio of 16.63.
Based on the Price/Forward Earnings ratio, SFM is valued a bit cheaper than 69.23% of the companies in the same industry.
SFM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.98 | ||
| EV/EBITDA | 12.34 |
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.
SFM's earnings are expected to grow with 23.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)0.86
EPS Next 2Y28.19%
EPS Next 3Y23.36%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.74
-1.31 (-1.26%)
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-0.33%
Ins Owners0.45%
Ins Owner Change-3.62%
Market Cap10.04B
Analysts75
Price Target188.7 (83.67%)
Short Float %7.32%
Short Ratio3.9
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)11.75%
Min EPS beat(2)7.94%
Max EPS beat(2)15.57%
EPS beat(4)4
Avg EPS beat(4)11.74%
Min EPS beat(4)6.62%
Max EPS beat(4)16.84%
EPS beat(8)8
Avg EPS beat(8)10.86%
EPS beat(12)12
Avg EPS beat(12)11.93%
EPS beat(16)16
Avg EPS beat(16)13.09%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.6%
Max Revenue beat(2)1.26%
Revenue beat(4)4
Avg Revenue beat(4)1.31%
Min Revenue beat(4)0.6%
Max Revenue beat(4)2.68%
Revenue beat(8)7
Avg Revenue beat(8)1.07%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)0%
PT rev (3m)-0.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.73%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 16.63 | ||
| P/S | 1.2 | ||
| P/FCF | 19.98 | ||
| P/OCF | 13.49 | ||
| P/B | 7.4 | ||
| P/tB | 13.1 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)4.86
EY4.73%
EPS(NY)6.18
Fwd EY6.01%
FCF(TTM)5.14
FCFY5%
OCF(TTM)7.62
OCFY7.41%
SpS85.94
BVpS13.88
TBVpS7.84
PEG (NY)0.49
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 35.75% | ||
| ROCE | 21.08% | ||
| ROIC | 15.85% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 21.96% | ||
| OM | 7.69% | ||
| PM (TTM) | 5.77% | ||
| GM | 38.69% | ||
| FCFM | 5.98% |
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 Turnover2.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 163.72% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 400.67 | ||
| Cash Conversion | 93.84% | ||
| Profit Quality | 103.62% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.46 |
F-Score8
WACC8.67%
ROIC/WACC1.83
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)51.88%
EPS 3Y21.43%
EPS 5Y24.64%
EPS Q2Q%43.62%
EPS Next Y43.14%
EPS Next 2Y28.19%
EPS Next 3Y23.36%
EPS Next 5Y18.03%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%17.27%
Revenue Next Year15.93%
Revenue Next 2Y13.63%
Revenue Next 3Y12.43%
Revenue Next 5Y11.14%
EBIT growth 1Y44.55%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year70.05%
EBIT Next 3Y29.2%
EBIT Next 5Y21.08%
FCF growth 1Y74.78%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y62.82%
OCF growth 3Y20.93%
OCF growth 5Y12.68%