(SFM) Sprouts Farmers Market - Overview
Sector: Consumer Defensive | Industry: Grocery Stores | Exchange: NASDAQ (USA) | Market Cap: 8.301m USD | Total Return: -49.4% in 12m
Industry Rotation: +4.4
Avg Turnover: 146M
EPS Trend: 75.5%
Qual. Beats: 0
Rev. Trend: 96.5%
Qual. Beats: 0
Warnings
Fakeout
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 0.38%; Δ 3.66k% > 0.5%) |
| Asset Turnover: 222.3% > 50% (prev 215.9%; Δ 6.33% > 0%) |
| Interest Coverage Ratio: 254.6 > 6 (EBITDA TTM 995.8m / 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: 0.21 (Book Value of Equity 583.8m / Total Liabilities 2.84b) |
| Altman-Z'' Score: 1.70 = BBB |
| DSRI: 0.80 (Receivables 63.3m/71.7m, Revenue 8.90b/8.07b) |
| GMI: 1.04 (GM 36.98% / 38.29%) |
| 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-Score: -3.19 (Cap -4..+1) = AA |
Over the past week, the price has changed by +3.24%, over one month by +15.32%, over three months by +26.57% and over the past year by -49.38%.
- StrongBuy: 4
- Buy: 1
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 91.9 | 7.4% |
P/E Forward = 14.7929
P/S = 0.9328
P/B = 5.4345
P/EG = 1.1385
Revenue TTM = 8.90b USD
EBIT TTM = 680.2m USD
EBITDA TTM = 995.8m USD
Long Term Debt = 2.06b USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 187.9m USD (from shortTermDebt, last quarter)
Debt = 2.06b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.81b USD (from netDebt column, last quarter)
Enterprise Value = 10.11b USD (8.30b + Debt 2.06b - CCE 252.2m)
Interest Coverage Ratio = 254.6 (Ebit TTM 680.2m / Interest Expense TTM 2.67m)
EV/FCF = 28.03x (Enterprise Value 10.11b / FCF TTM 360.6m)
FCF Yield = 3.57% (FCF TTM 360.6m / Enterprise Value 10.11b)
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 = 2.37 (Enterprise Value 10.11b / Total Assets 4.27b)
Interest Expense / Debt = 0.03% (Interest Expense 591k / Debt 2.06b)
Taxrate = 24.00% (51.7m / 215.4m)
NOPAT = 516.9m (EBIT 680.2m * (1 - 24.00%))
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 = 19.61% (EBIT 680.2m / Capital Employed (Equity 1.41b + L.T.Debt 2.06b))
RoIC = 36.74% (NOPAT 516.9m / Invested Capital 1.41b)
WACC = 6.64% (E(8.30b)/V(10.36b) * Re(8.28%) + D(2.06b)/V(10.36b) * Rd(0.03%) * (1-Tc(0.24)))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.11 | Cagr: -2.93%
[DCF] Terminal Value 84.69% ; FCFF base≈410.8m ; Y1≈448.1m ; Y5≈565.6m
[DCF] Fair Price = 126.6 (EV 13.71b - Net Debt 1.81b = Equity 11.90b / Shares 94.0m; r=6.64% [WACC]; 5y FCF grow 10.34% → 3.0% )
EPS Correlation: 75.46 | EPS CAGR: 34.04% | SUE: 0.23 | # QB: 0
Revenue Correlation: 96.55 | Revenue CAGR: 10.62% | SUE: 0.22 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.34 | Chg30d=-1.51% | Revisions=-23% | Analysts=11
EPS next Quarter (2026-09-30): EPS=1.31 | Chg30d=+0.72% | Revisions=+8% | Analysts=11
EPS current Year (2026-12-31): EPS=5.56 | Chg30d=+0.51% | Revisions=+14% | GrowthEPS=+4.7% | GrowthRev=+7.9%
EPS next Year (2027-12-31): EPS=5.90 | Chg30d=+0.34% | Revisions=+8% | GrowthEPS=+6.2% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: -23%