SFM

Sprouts Farmers MarketNasdaqGS:SFM Stock Report

Market Cap

US$2.6b

7D

-3.4%

1Y

7.0%

Updated

16 Sep, 2021

Data

Company Financials +
SFM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends0/6

SFM Overview

Sprouts Farmers Market, Inc. offers fresh, natural, and organic food products in the United States.

Sprouts Farmers Market Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sprouts Farmers Market
Historical stock prices
Current Share PriceUS$22.59
52 Week HighUS$18.21
52 Week LowUS$29.35
Beta0.24
1 Month Change-9.06%
3 Month Change-18.06%
1 Year Change6.96%
3 Year Change-17.91%
5 Year Change10.47%
Change since IPO-43.50%

Recent News & Updates

Sep 01
Is Sprouts Farmers Market (NASDAQ:SFM) A Risky Investment?

Is Sprouts Farmers Market (NASDAQ:SFM) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Jul 19
Be Wary Of Sprouts Farmers Market (NASDAQ:SFM) And Its Returns On Capital

Be Wary Of Sprouts Farmers Market (NASDAQ:SFM) And Its Returns On Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Jul 04

Sprouts Farmers Market: Health Equals Wealth

Sprouts is currently trading at a very low valuation while achieving record profits and sales. The company has a competitive advantage in a rising input cost environment due to fewer supply-chain dependencies stemming from environmentally friendly practices. Sprouts has achieved stellar organic growth by reinvesting profits at high returns on invested capital instead of relying on shareholder dilution or leveraging. As demand for healthier and less-processed foods continues to rise, Sprouts has the potential to double or triple its store count to cater to underserved markets. I believe SFM may double to $60+ as more investors and analysts realize the company's tremendous growth and value opportunities as well as its unmatched competitive advantages.

Shareholder Returns

SFMUS Consumer RetailingUS Market
7D-3.4%-1.8%-0.6%
1Y7.0%16.9%33.7%

Return vs Industry: SFM underperformed the US Consumer Retailing industry which returned 15.9% over the past year.

Return vs Market: SFM underperformed the US Market which returned 30.7% over the past year.

Price Volatility

Is SFM's price volatile compared to industry and market?
SFM volatility
SFM Beta0.24
Industry Beta0.60
Market Beta1

Stable Share Price: SFM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SFM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200233,000Jack Sinclairhttps://www.sprouts.com

Sprouts Farmers Market, Inc. offers fresh, natural, and organic food products in the United States. It operates through Healthy Grocery Stores segment. The company offers perishable product categories, including fresh produce, meat, seafood, deli, bakery, floral and dairy, and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.

Sprouts Farmers Market Fundamentals Summary

How do Sprouts Farmers Market's earnings and revenue compare to its market cap?
SFM fundamental statistics
Market CapUS$2.58b
Earnings (TTM)US$272.70m
Revenue (TTM)US$6.28b

9.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SFM income statement (TTM)
RevenueUS$6.28b
Cost of RevenueUS$3.96b
Gross ProfitUS$2.32b
ExpensesUS$2.04b
EarningsUS$272.70m

Last Reported Earnings

Jul 04, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.31
Gross Margin36.91%
Net Profit Margin4.34%
Debt/Equity Ratio27.2%

How did SFM perform over the long term?

See historical performance and comparison

Valuation

Is Sprouts Farmers Market undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFM ($22.59) is trading below our estimate of fair value ($56.14)

Significantly Below Fair Value: SFM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFM is good value based on its PE Ratio (9.5x) compared to the US Consumer Retailing industry average (21.4x).

PE vs Market: SFM is good value based on its PE Ratio (9.5x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SFM is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SFM is overvalued based on its PB Ratio (2.7x) compared to the US Consumer Retailing industry average (2.2x).


Future Growth

How is Sprouts Farmers Market forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFM's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: SFM's earnings (5.6% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: SFM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SFM's revenue (8.5% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: SFM's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFM's Return on Equity is forecast to be high in 3 years time (21.6%)


Past Performance

How has Sprouts Farmers Market performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFM has high quality earnings.

Growing Profit Margin: SFM's current net profit margins (4.3%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: SFM's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: SFM's earnings growth over the past year (24.6%) exceeds its 5-year average (15.5% per year).

Earnings vs Industry: SFM earnings growth over the past year (24.6%) underperformed the Consumer Retailing industry 26.2%.


Return on Equity

High ROE: SFM's Return on Equity (28.7%) is considered high.


Financial Health

How is Sprouts Farmers Market's financial position?


Financial Position Analysis

Short Term Liabilities: SFM's short term assets ($551.4M) exceed its short term liabilities ($483.5M).

Long Term Liabilities: SFM's short term assets ($551.4M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: SFM's debt to equity ratio (27.2%) is considered satisfactory.

Reducing Debt: SFM's debt to equity ratio has increased from 20.3% to 27.2% over the past 5 years.

Debt Coverage: SFM's debt is well covered by operating cash flow (107.5%).

Interest Coverage: SFM's interest payments on its debt are well covered by EBIT (30.5x coverage).


Balance Sheet


Dividend

What is Sprouts Farmers Market current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SFM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SFM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SFM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SFM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Jack Sinclair (60 yo)

2.25yrs

Tenure

US$8,465,476

Compensation

Mr. Jack L. Sinclair has been Chief Executive Officer and a Member of Board of Directors of Sprouts Farmers Market, Inc. since June 24, 2019. Mr. Sinclair has served as a board member of FMI – The Food Ind...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD8.47M) is above average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SFM's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: SFM's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SFM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sprouts Farmers Market, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sprouts Farmers Market, Inc.
  • Ticker: SFM
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: US$2.580b
  • Shares outstanding: 114.19m
  • Website: https://www.sprouts.com

Number of Employees


Location

  • Sprouts Farmers Market, Inc.
  • 5455 East High Street
  • Suite 111
  • Phoenix
  • Arizona
  • 85054
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 04:32
End of Day Share Price2021/09/15 00:00
Earnings2021/07/04
Annual Earnings2021/01/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.