78.12 USD
-2.13 (-2.65%)
78.3 USD
+0.18 (+0.23%)
We assign a fundamental rating of 7 out of 10 to SFM. SFM was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. SFM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: SFM is growing strongly while it also seems undervalued. These ratings could make SFM a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
SFM had positive earnings in the past year.
In the past year SFM had a positive cash flow from operations.
Each year in the past 5 years SFM has been profitable.
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 12.79%, SFM belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
The Return On Equity of SFM (35.79%) is better than 94.74% of its industry peers.
With an excellent Return On Invested Capital value of 15.78%, SFM belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SFM is above the industry average of 8.25%.
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
Looking at the Profit Margin, with a value of 5.93%, SFM belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
SFM's Profit Margin has improved in the last couple of years.
SFM has a better Operating Margin (7.84%) than 92.11% of its industry peers.
In the last couple of years the Operating Margin of SFM has grown nicely.
SFM has a Gross Margin of 38.83%. This is amongst the best in the industry. SFM outperforms 84.21% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SFM is still creating some value.
SFM has less shares outstanding than it did 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
SFM has an Altman-Z score of 4.70. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM has a better Altman-Z score (4.70) than 68.42% 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.
The Debt to FCF ratio of SFM (0.12) is better than 97.37% of its industry peers.
SFM has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, SFM belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.8
WACC8.78%
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 47.37% 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 50.00% 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
The Earnings Per Share has grown by an impressive 49.42% 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 16.60% in the past year. This is quite good.
The Revenue has been growing slightly by 6.50% on average over the past years.
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
Based on estimates for the next years, SFM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.28% on average per year.
SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y41.53%
EPS Next 2Y24.33%
EPS Next 3Y20.39%
EPS Next 5Y16.28%
Revenue Next Year14.66%
Revenue Next 2Y12.23%
Revenue Next 3Y11.35%
Revenue Next 5Y10.63%
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 15.11 indicates a correct valuation of SFM.
Based on the Price/Earnings ratio, SFM is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
SFM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.44, SFM is valued correctly.
SFM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SFM is cheaper than 68.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, SFM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
71.05% of the companies in the same industry are more expensive than SFM, based on the Enterprise Value to EBITDA ratio.
SFM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SFM is cheaper than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.62 | ||
| EV/EBITDA | 8.84 |
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 20.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)0.61
EPS Next 2Y24.33%
EPS Next 3Y20.39%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
78.12
-2.13 (-2.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.02%
Inst Owner Change1.68%
Ins Owners0.45%
Ins Owner Change-1.6%
Market Cap7.61B
Revenue(TTM)8.65B
Net Income(TTM)513.45M
Analysts75
Price Target122.32 (56.58%)
Short Float %8%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-25.05%
PT rev (3m)-35.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.44 | ||
| P/S | 0.88 | ||
| P/FCF | 16.62 | ||
| P/OCF | 10.83 | ||
| P/B | 5.3 | ||
| P/tB | 9.01 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)5.17
EY6.62%
EPS(NY)5.81
Fwd EY7.44%
FCF(TTM)4.7
FCFY6.02%
OCF(TTM)7.21
OCFY9.23%
SpS88.87
BVpS14.73
TBVpS8.67
PEG (NY)0.36
PEG (5Y)0.61
Graham Number41.4
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 | 4.7 |
F-Score7
WACC8.78%
ROIC/WACC1.8
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 2Y24.33%
EPS Next 3Y20.39%
EPS Next 5Y16.28%
Revenue 1Y (TTM)16.6%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%13.09%
Revenue Next Year14.66%
Revenue Next 2Y12.23%
Revenue Next 3Y11.35%
Revenue Next 5Y10.63%
EBIT growth 1Y40.74%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year67.74%
EBIT Next 3Y25.7%
EBIT Next 5Y19.03%
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 15.11 and the Price/Book (PB) ratio is 5.3.