SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM - US85208M1027 - Common Stock
140.54 USD
-0.88 (-0.62%)
142.426 USD
+1.89 (+1.34%)
Overall SFM gets a fundamental rating of 7 out of 10. We evaluated SFM against 41 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. SFM is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, SFM could be worth investigating further 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.
SFM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SFM has a better Return On Assets (12.82%) than 95.12% of its industry peers.
SFM's Return On Equity of 35.75% is amongst the best of the industry. SFM outperforms 92.68% of its industry peers.
SFM has a better Return On Invested Capital (15.85%) than 97.56% 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 8.38%.
The last Return On Invested Capital (15.85%) for SFM is above the 3 year average (11.53%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 5.77%, SFM belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of SFM has grown nicely.
Looking at the Operating Margin, with a value of 7.69%, SFM belongs to the top 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.
The Gross Margin of SFM (38.69%) 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 | 7.69% | ||
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
SFM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SFM has less shares outstanding
Compared to 1 year ago, SFM has an improved debt to assets ratio.
2.2 Solvency
SFM has an Altman-Z score of 6.37. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.37, SFM belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
SFM has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
SFM has a better Debt to FCF ratio (0.02) than 95.12% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that SFM is not too dependend on debt financing.
The Debt to Equity ratio of SFM (0.00) is better than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.37 |
ROIC/WACC1.79
WACC8.85%
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: 70.73% 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.
The Quick ratio of SFM (0.50) 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 | 0.98 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.88% 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.
SFM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.83%.
The Revenue has been growing slightly by 6.50% on average over the past years.
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 19.18% 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 11.53% on average per year.
EPS Next Y43.17%
EPS Next 2Y28.25%
EPS Next 3Y23.5%
EPS Next 5Y19.18%
Revenue Next Year15.95%
Revenue Next 2Y13.6%
Revenue Next 3Y12.46%
Revenue Next 5Y11.53%
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
Based on the Price/Earnings ratio of 28.92, the valuation of SFM can be described as expensive.
Based on the Price/Earnings ratio, SFM is valued a bit more expensive than 63.41% of the companies in the same industry.
SFM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
A Price/Forward Earnings ratio of 22.73 indicates a rather expensive valuation of SFM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SFM is on the same level as its industry peers.
SFM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 22.73 |
4.2 Price Multiples
SFM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SFM is more expensive than 68.29% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SFM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.33 | ||
| EV/EBITDA | 17 |
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 23.50% in the coming years.
PEG (NY)0.67
PEG (5Y)1.17
EPS Next 2Y28.25%
EPS Next 3Y23.5%
5. Dividend
5.1 Amount
SFM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
140.54
-0.88 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.52%
Inst Owner Change-0.05%
Ins Owners0.47%
Ins Owner Change2.41%
Market Cap13.73B
Analysts72
Price Target188.7 (34.27%)
Short Float %6.35%
Short Ratio3.17
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)11.75%
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)0.05%
PT rev (3m)-0.05%
EPS NQ rev (1m)2.03%
EPS NQ rev (3m)9.75%
EPS NY rev (1m)4.52%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)1.42%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 22.73 | ||
| P/S | 1.64 | ||
| P/FCF | 27.33 | ||
| P/OCF | 18.45 | ||
| P/B | 10.13 | ||
| P/tB | 17.92 | ||
| EV/EBITDA | 17 |
EPS(TTM)4.86
EY3.46%
EPS(NY)6.18
Fwd EY4.4%
FCF(TTM)5.14
FCFY3.66%
OCF(TTM)7.62
OCFY5.42%
SpS85.94
BVpS13.88
TBVpS7.84
PEG (NY)0.67
PEG (5Y)1.17
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 | 6.37 |
F-Score8
WACC8.85%
ROIC/WACC1.79
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 Y43.17%
EPS Next 2Y28.25%
EPS Next 3Y23.5%
EPS Next 5Y19.18%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%17.27%
Revenue Next Year15.95%
Revenue Next 2Y13.6%
Revenue Next 3Y12.46%
Revenue Next 5Y11.53%
EBIT growth 1Y44.55%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year69.62%
EBIT Next 3Y29.48%
EBIT Next 5Y21.7%
FCF growth 1Y74.78%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y62.82%
OCF growth 3Y20.93%
OCF growth 5Y12.68%