SPROUTS FARMERS MARKET INC (SFM) Stock Fundamental Analysis
USA - NASDAQ:SFM - US85208M1027 - Common Stock
120.41 USD
-2.34 (-1.91%)
120.5 USD
+0.09 (+0.07%)
Overall SFM gets a fundamental rating of 7 out of 10. We evaluated SFM against 40 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes SFM very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year SFM was profitable.
SFM had a positive operating cash flow in the past year.
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 12.82% is amongst the best of the industry. SFM outperforms 95.00% of its industry peers.
SFM's Return On Equity of 35.75% is amongst the best of the industry. SFM outperforms 92.50% of its industry peers.
With an excellent Return On Invested Capital value of 15.85%, SFM belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
SFM had an Average Return On Invested Capital over the past 3 years of 11.53%. This is above the industry average of 8.47%.
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 has a Profit Margin of 5.77%. This is amongst the best in the industry. SFM outperforms 90.00% of its industry peers.
In the last couple of years the Profit Margin of SFM has grown nicely.
With an excellent Operating Margin value of 7.69%, SFM belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
SFM's Operating Margin has improved in the last couple of years.
SFM has a better Gross Margin (38.69%) than 85.00% 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 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
An Altman-Z score of 5.89 indicates that SFM is not in any danger for bankruptcy at the moment.
SFM has a Altman-Z score of 5.89. This is amongst the best in the industry. SFM outperforms 85.00% 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.
SFM has a Debt to FCF ratio of 0.02. This is amongst the best in the industry. SFM outperforms 95.00% 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.
The Debt to Equity ratio of SFM (0.00) is better than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 5.89 |
ROIC/WACC1.81
WACC8.76%
2.3 Liquidity
A Current Ratio of 0.98 indicates that SFM may have some problems paying its short term obligations.
SFM's Current ratio of 0.98 is on the low side compared to the rest of the industry. SFM is outperformed by 75.00% of its industry peers.
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's Quick ratio of 0.50 is on the low side compared to the rest of the industry. SFM is outperformed by 60.00% 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 | 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.
SFM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.64% yearly.
The Revenue has grown by 16.83% 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)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.
SFM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.53% yearly.
EPS Next Y43.17%
EPS Next 2Y28.25%
EPS Next 3Y23.5%
EPS Next 5Y19.18%
Revenue Next Year15.94%
Revenue Next 2Y13.64%
Revenue Next 3Y12.43%
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.
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 24.78 indicates a rather expensive valuation of SFM.
62.50% of the companies in the same industry are cheaper than SFM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.38. SFM is around the same levels.
The Price/Forward Earnings ratio is 19.47, which indicates a rather expensive current valuation of SFM.
62.50% of the companies in the same industry are more expensive than SFM, based on the Price/Forward Earnings ratio.
SFM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 19.47 |
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.
SFM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.42 | ||
| EV/EBITDA | 14.52 |
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.
A more expensive valuation may be justified as SFM's earnings are expected to grow with 23.50% in the coming years.
PEG (NY)0.57
PEG (5Y)1.01
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 |
120.41
-2.34 (-1.91%)
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 Change-4.64%
Market Cap11.77B
Analysts75
Price Target188.7 (56.71%)
Short Float %7.16%
Short Ratio4.43
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)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)-0.18%
EPS NQ rev (3m)4.9%
EPS NY rev (1m)0%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 19.47 | ||
| P/S | 1.4 | ||
| P/FCF | 23.42 | ||
| P/OCF | 15.81 | ||
| P/B | 8.68 | ||
| P/tB | 15.35 | ||
| EV/EBITDA | 14.52 |
EPS(TTM)4.86
EY4.04%
EPS(NY)6.18
Fwd EY5.14%
FCF(TTM)5.14
FCFY4.27%
OCF(TTM)7.62
OCFY6.32%
SpS85.94
BVpS13.88
TBVpS7.84
PEG (NY)0.57
PEG (5Y)1.01
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 | 5.89 |
F-Score8
WACC8.76%
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)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 Year15.94%
Revenue Next 2Y13.64%
Revenue Next 3Y12.43%
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%