SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
NASDAQ:SFM - Nasdaq - US85208M1027 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to SFM. SFM was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making SFM a very profitable company, without any liquidiy or solvency issues. SFM is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
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
With an excellent Return On Assets value of 12.82%, SFM belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
The Return On Equity of SFM (35.75%) is better than 92.50% of its industry peers.
The Return On Invested Capital of SFM (15.85%) is better than 97.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SFM is above the industry average of 8.23%.
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
The Profit Margin of SFM (5.77%) is better than 92.50% of its industry peers.
SFM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.69%, SFM belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
In the last couple of years the Operating Margin of SFM has grown nicely.
SFM's Gross Margin of 38.69% is amongst the best of the industry. SFM outperforms 85.00% of its industry peers.
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
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.
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 6.59. This indicates that SFM is financially healthy and has little risk of bankruptcy at the moment.
SFM's Altman-Z score of 6.59 is amongst the best of the industry. SFM outperforms 87.50% of its industry peers.
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.
The Debt to FCF ratio of SFM (0.02) is better than 97.50% of its industry peers.
SFM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, SFM belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.59 |
ROIC/WACC1.79
WACC8.84%
2.3 Liquidity
SFM has a Current 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.
Looking at the Current ratio, with a value of 0.98, SFM is doing worse than 65.00% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.50, SFM is doing worse than 60.00% of the companies in the same 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
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.
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 16.83% 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)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 17.19% 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 10.98% on average per year.
EPS Next Y36.98%
EPS Next 2Y24.06%
EPS Next 3Y19.88%
EPS Next 5Y17.19%
Revenue Next Year14.33%
Revenue Next 2Y12.72%
Revenue Next 3Y11.62%
Revenue Next 5Y10.98%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 31.03, the valuation of SFM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SFM.
SFM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
Based on the Price/Forward Earnings ratio of 26.06, the valuation of SFM can be described as expensive.
SFM's Price/Forward Earnings ratio is in line with the industry average.
SFM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 26.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SFM is valued a bit more expensive than 67.50% of the companies in the same industry.
SFM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.37 | ||
| EV/EBITDA | 18.09 |
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 19.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.26
EPS Next 2Y24.06%
EPS Next 3Y19.88%
5. Dividend
5.1 Amount
No dividends for SFM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SFM (8/6/2025, 2:06:59 PM)
150.81
+1.57 (+1.05%)
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 Change-1.84%
Ins Owners0.47%
Ins Owner Change2.85%
Market Cap14.76B
Analysts72
Price Target188.7 (25.12%)
Short Float %6.38%
Short Ratio3.33
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)-0.83%
PT rev (3m)5.11%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)6.95%
EPS NY rev (1m)0.06%
EPS NY rev (3m)9.17%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 26.06 | ||
| P/S | 1.76 | ||
| P/FCF | 29.37 | ||
| P/OCF | 19.83 | ||
| P/B | 10.88 | ||
| P/tB | 19.25 | ||
| EV/EBITDA | 18.09 |
EPS(TTM)4.86
EY3.22%
EPS(NY)5.79
Fwd EY3.84%
FCF(TTM)5.13
FCFY3.4%
OCF(TTM)7.61
OCFY5.04%
SpS85.83
BVpS13.86
TBVpS7.83
PEG (NY)0.84
PEG (5Y)1.26
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 | 6.59 |
F-Score8
WACC8.84%
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 Y36.98%
EPS Next 2Y24.06%
EPS Next 3Y19.88%
EPS Next 5Y17.19%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.16%
Revenue growth 5Y6.5%
Sales Q2Q%17.27%
Revenue Next Year14.33%
Revenue Next 2Y12.72%
Revenue Next 3Y11.62%
Revenue Next 5Y10.98%
EBIT growth 1Y44.55%
EBIT growth 3Y15.16%
EBIT growth 5Y18.15%
EBIT Next Year69.62%
EBIT Next 3Y29.48%
EBIT Next 5Y19.96%
FCF growth 1Y74.78%
FCF growth 3Y16.49%
FCF growth 5Y19.25%
OCF growth 1Y62.82%
OCF growth 3Y20.93%
OCF growth 5Y12.68%