(SFM) Sprouts Farmers Market - Overview
Sector: Consumer Defensive | Industry: Grocery Stores | Exchange: NASDAQ (USA) | Market Cap: 7.793m USD | Total Return: -47.7% in 12m
Avg Turnover: 164M
EPS Trend: 97.7%
Qual. Beats: 0
Rev. Trend: 99.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Sprouts Farmers Market, Inc. (SFM) operates as a specialty retailer focused on fresh, natural, and organic food products across the United States. The company differentiates itself through a product mix that prioritizes health-oriented lifestyles, including plant-based, keto, paleo, and gluten-free diets. Its inventory spans perishable goods like produce and meat alternatives, alongside non-perishable categories such as vitamins, supplements, and bulk items.
The business model utilizes a smaller store footprint compared to traditional supermarkets, which allows for lower capital expenditures and a focus on high-turnover fresh produce. As a player in the Food Retail sub-industry, Sprouts competes in a defensive sector where demand is generally less sensitive to economic cycles than discretionary retail. For a deeper look into these fundamentals, you can view the detailed metrics on ValueRay. Headquartered in Phoenix, Arizona, the company continues to expand its private-label offerings under the Sprouts brand to drive margin growth.
- Expansion of private label brands enhances gross margins and customer loyalty
- New store growth strategy targets high-growth markets to increase regional market share
- Perishable category mix shifts influence inventory turnover and supply chain efficiency
- Consumer demand for organic and health-focused products drives comparable store sales
- Food price inflation volatility impacts operating margins and discretionary grocery spending volume
| Net Income: 507.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -4.55 > 1.0 |
| NWC/Revenue: -0.74% < 20% (prev -0.49%; Δ -0.24% < -1%) |
| CFO/TA 0.15 > 3% & CFO 650.6m > Net Income 507.4m |
| Net Debt (1.81b) to EBITDA (995.8m): 1.82 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (95.6m) vs 12m ago -4.15% < -2% |
| Gross Margin: 36.98% > 18% (prev 38.29%; Δ -1.31% > 0.5%) |
| Asset Turnover: 222.3% > 50% (prev 215.9%; Δ 6.33% > 0%) |
| Interest Coverage Ratio: 254.6 > 6 (EBIT TTM 680.2m / Interest Expense TTM 2.67m) |
| A: -0.02 (Total Current Assets 772.3m - Total Current Liabilities 837.8m) / Total Assets 4.27b |
| B: 0.14 (Retained Earnings 583.7m / Total Assets 4.27b) |
| C: 0.17 (EBIT TTM 680.2m / Avg Total Assets 4.00b) |
| D: 0.51 (Book Value of Equity 1.43b / Total Liabilities 2.84b) |
| Altman-Z'' = 2.02 = BBB |
| DSRI: 0.80 (Receivables 63.3m/71.7m, Revenue 8.90b/8.07b) |
| GMI: 1.04 (GM 38.29% / 36.98%) |
| AQI: 0.89 (AQ_t 0.14 / AQ_t-1 0.16) |
| SGI: 1.10 (Revenue 8.90b / 8.07b) |
| TATA: -0.03 (NI 507.4m - CFO 650.6m) / TA 4.27b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of June 09, 2026, the stock is trading at USD 86.68 with a total of 2,657,086 shares traded.
Over the past week, the price has changed by +8.70%,
over one month by +4.65%,
over three months by +11.43% and
over the past year by -47.70%.
Sprouts Farmers Market has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold SFM.
- StrongBuy: 4
- Buy: 1
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 92.4 | 6.6% |
P/E Trailing = 15.906
P/E Forward = 14.3266
P/S = 0.8758
P/B = 5.2588
P/EG = 1.1016
Revenue TTM = 8.90b USD
EBIT TTM = 680.2m USD
EBITDA TTM = 995.8m USD
Long Term Debt = 1.87b USD (estimated: total debt 2.06b - short term 187.9m)
Short Term Debt = 187.9m USD (from shortTermDebt, last quarter)
Debt = 2.06b USD (from shortLongTermDebtTotal, last quarter) (leases 2.06b already included)
Net Debt = 1.81b USD (calculated: Debt 2.06b - CCE 252.2m)
Enterprise Value = 9.60b USD (7.79b + Debt 2.06b - CCE 252.2m)
Interest Coverage Ratio = 254.6 (Ebit TTM 680.2m / Interest Expense TTM 2.67m)
EV/FCF = 26.63x (Enterprise Value 9.60b / FCF TTM 360.6m)
FCF Yield = 3.76% (FCF TTM 360.6m / Enterprise Value 9.60b)
FCF Margin = 4.05% (FCF TTM 360.6m / Revenue TTM 8.90b)
Net Margin = 5.70% (Net Income TTM 507.4m / Revenue TTM 8.90b)
Gross Margin = 36.98% ((Revenue TTM 8.90b - Cost of Revenue TTM 5.61b) / Revenue TTM)
Gross Margin QoQ = 37.58% (prev 36.16%)
Tobins Q-Ratio = 2.25 (Enterprise Value 9.60b / Total Assets 4.27b)
Interest Expense / Debt = 0.13% (Interest Expense 2.67m / Debt 2.06b)
Taxrate = 25.05% (169.6m / 677.0m)
NOPAT = 509.8m (EBIT 680.2m * (1 - 25.05%))
Current Ratio = 0.92 (Total Current Assets 772.3m / Total Current Liabilities 837.8m)
Debt / Equity = 1.44 (Debt 2.06b / totalStockholderEquity, last quarter 1.43b)
Debt / EBITDA = 1.82 (Net Debt 1.81b / EBITDA 995.8m)
Debt / FCF = 5.02 (Net Debt 1.81b / FCF TTM 360.6m)
Total Stockholder Equity = 1.41b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.67% (Net Income 507.4m / Total Assets 4.27b)
RoE = 36.06% (Net Income TTM 507.4m / Total Stockholder Equity 1.41b)
RoCE = 20.74% (EBIT 680.2m / Capital Employed (Equity 1.41b + L.T.Debt 1.87b))
RoIC = 15.14% (NOPAT 509.8m / Invested Capital 3.37b)
WACC = 6.39% (E(7.79b)/V(9.85b) * Re(8.06%) + D(2.06b)/V(9.85b) * Rd(0.13%) * (1-Tc(0.25)))
Discount Rate = 8.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.11 | Cagr: -2.93%
[DCF] Terminal Value 73.10% ; FCFF base≈410.8m ; Y1≈360.2m ; Y5≈291.0m
[DCF] Fair Price = 30.44 (EV 4.67b - Net Debt 1.81b = Equity 2.86b / Shares 94.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 97.73 | EPS CAGR: 33.68% | SUE: 0.41 | # QB: 0
Revenue Correlation: 99.22 | Revenue CAGR: 12.93% | SUE: 0.22 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.34 | Chg30d=-1.09% | Revisions=-7% | Analysts=12
EPS next Quarter (2026-09-30): EPS=1.30 | Chg30d=+0.28% | Revisions=+20% | Analysts=12
EPS current Year (2026-12-31): EPS=5.56 | Chg30d=+0.13% | Revisions=+33% | GrowthEPS=+4.8% | GrowthRev=+8.0%
EPS next Year (2027-12-31): EPS=5.91 | Chg30d=+0.24% | Revisions=+23% | GrowthEPS=+6.2% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: +33%