SFM Stock Analysis: Sprouts Farmers Market | NASDAQ
Grocery Stores | NASDAQ, USA | Market Cap: 7.716m USD | 12M Return: -48.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 158M
EPS Trend: 97.7%
Qual. Beats: 0
Rev. Trend: 99.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Sprouts Farmers Market, Inc. (NASDAQ: SFM) is a U.S. specialty grocery retailer focused on fresh, natural, and organic foods. Founded in 1943 and headquartered in Phoenix, Arizona, the company operates under a single-brand strategy, selling products exclusively under the Sprouts label. It went public in August 2013 and is classified within the Consumer Staples sector (GICS sub-industry: Food Retail).
The companys assortment centers on lifestyle-friendly ingredients such as organic, plant-based, keto, paleo, non-GMO, and gluten-free items. Its perishable offerings span produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy alternatives, while non-perishables include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. Within the broader food retail sector, Sprouts competes in the differentiated natural-and-organic grocery niche, a segment that emphasizes fresh and health-oriented product mix rather than the full-spectrum, low-price positioning of conventional supermarket chains.
- Comparable store sales growth drives comparable revenue gains
- New store unit expansion accelerates across Sun Belt markets
- Private label penetration lifts gross margin expansion
| 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 (995.3m): 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: 254.4 > 6 (EBIT TTM 679.6m / 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 679.6m / 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 30, 2026, the stock is trading at USD 82.14 with a total of 5,024,826 shares traded. Over the past week, the price has changed by +2.05%, over one month by -4.08%, over three months by +6.30% and over the past year by -48.80%.
Current recommended Stop Loss: 73.80 (which is 10.2% or 2.2 ATR below the current price).
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 | 12.5% |
P/E Trailing = 15.7486
P/E Forward = 14.6413
P/S = 0.8671
P/B = 5.3801
P/EG = 1.1271
Revenue TTM = 8.90b USD
EBIT TTM = 679.6m USD
EBITDA TTM = 995.3m 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 = 9.53b USD (7.72b + Debt 2.06b - CCE 252.2m)
Interest Coverage Ratio = 254.4 (Ebit TTM 679.6m / Interest Expense TTM 2.67m)
EV/FCF = 26.41x (Enterprise Value 9.53b / FCF TTM 360.6m)
FCF Yield = 3.79% (FCF TTM 360.6m / Enterprise Value 9.53b)
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 = 2.23 (Enterprise Value 9.53b / Total Assets 4.27b)
Interest Expense / Debt = 0.13% (Interest Expense 2.67m / Debt 2.06b)
Taxrate = 25.05% (169.6m / 677.0m)
NOPAT = 509.4m (EBIT 679.6m * (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 995.3m)
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 = 20.72% (EBIT 679.6m / Capital Employed (Equity 1.41b + L.T.Debt 1.87b))
RoIC = 15.13% (NOPAT 509.4m / Invested Capital 3.37b)
WACC = 6.04% (E(7.72b)/V(9.78b) * Re(7.63%) + D(2.06b)/V(9.78b) * Rd(0.13%) * (1-Tc(0.25)))
Discount Rate = 7.63% (= 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 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%