Sprouts Farmers Market
Market Cap
US$1.8b
Last Updated
2020/02/17 00:45 UTC
Data Sources
Company Financials +
Executive Summary
Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.08% per year for the next 3 years
Snowflake Analysis
Fair value with acceptable track record.
Similar Companies
Share Price & News
How has Sprouts Farmers Market's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SFM's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.5%
SFM
1.7%
US Consumer Retailing
1.5%
US Market
1 Year Return
-37.1%
SFM
15.6%
US Consumer Retailing
20.1%
US Market
Return vs Industry: SFM underperformed the US Consumer Retailing industry which returned 15.6% over the past year.
Return vs Market: SFM underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| SFM | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.5% | 1.7% | 1.5% |
| 30 Day | -12.2% | 1.6% | 1.4% |
| 90 Day | -21.9% | -1.1% | 8.7% |
| 1 Year | -37.1%-37.1% | 17.7%15.6% | 22.7%20.1% |
| 3 Year | -19.2%-19.2% | 50.0%40.5% | 50.1%40.5% |
| 5 Year | -58.3%-58.3% | 47.8%32.6% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Sprouts Farmers Market's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Estimating The Fair Value Of Sprouts Farmers Market, Inc. (NASDAQ:SFM)3 weeks ago | Simply Wall St
Need To Know: Sprouts Farmers Market, Inc. (NASDAQ:SFM) Insiders Have Been Selling Shares1 month ago | Simply Wall St
Should You Be Impressed By Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) ROE?Valuation
Is Sprouts Farmers Market undervalued compared to its fair value and its price relative to the market?
17.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SFM ($15.45) is trading below our estimate of fair value ($18.62)
Significantly Below Fair Value: SFM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SFM is good value based on its PE Ratio (14.4x) compared to the Consumer Retailing industry average (22.2x).
PE vs Market: SFM is good value based on its PE Ratio (14.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: SFM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SFM is overvalued based on its PB Ratio (3.3x) compared to the US Consumer Retailing industry average (2.1x).
Next Steps
Future Growth
How is Sprouts Farmers Market forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
-0.08%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SFM's earnings are forecast to decline over the next 3 years (-0.08% per year).
Earnings vs Market: SFM's earnings are forecast to decline over the next 3 years (-0.08% per year).
High Growth Earnings: SFM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SFM's revenue (6.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: SFM's revenue (6.6% 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 low in 3 years time (18.7%).
Next Steps
Past Performance
How has Sprouts Farmers Market performed over the past 5 years?
8.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SFM has high quality earnings.
Growing Profit Margin: SFM's current net profit margins (2.4%) are lower than last year (3.7%).
Past Earnings Growth Analysis
Earnings Trend: SFM's earnings have grown by 8% per year over the past 5 years.
Accelerating Growth: SFM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SFM had negative earnings growth (-29.5%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-6.1%).
Return on Equity
High ROE: SFM's Return on Equity (23.3%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Sprouts Farmers Market's financial position?
Financial Position Analysis
Short Term Liabilities: SFM's short term assets ($412.0M) do not cover its short term liabilities ($472.1M).
Long Term Liabilities: SFM's short term assets ($412.0M) do not cover its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: SFM's debt to equity ratio (93.3%) is considered high.
Reducing Debt: SFM's debt to equity ratio has increased from 39.6% to 93.3% over the past 5 years.
Debt Coverage: SFM's debt is well covered by operating cash flow (73.1%).
Interest Coverage: SFM's interest payments on its debt are well covered by EBIT (9.1x coverage).
Balance Sheet
Inventory Level: SFM has a high level of physical assets or inventory.
Debt Coverage by Assets: SFM's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Sprouts Farmers Market's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate SFM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate SFM's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
2.4yrs
Average management tenure
CEO
Jack Sinclair (58yo)
0.7yrs
Tenure
Mr. Jack L. Sinclair has been Chief Executive Officer and a Member of board of director of Sprouts Farmers Market, Inc. Since June 24, 2019. He has been Chief Executive Officer of 99 Cents only Stores LLC ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Interim CFO & Director | 7.1yrs | US$194.49k | 0.032% $590.3k | |
| Chief Operations Officer | 3.3yrs | US$990.17k | 0.028% $506.7k | |
| Chief Human Resources & Legal Officer and Corporate Secretary | 8.1yrs | US$994.03k | 0.015% $279.6k | |
| Senior Advisor (Leave of Absence) | 0.5yrs | US$2.53m | 0.093% $1.7m | |
| CEO & Director | 0.7yrs | no data | no data | |
| Chief Information Officer | 5yrs | US$669.48k | no data | |
| Vice President of Investor Relations & Treasury | 0yrs | US$321.36k | no data | |
| Chief Development Officer | 5yrs | US$763.13k | 0.024% $429.1k | |
| Chief Merchandising Officer | 1.5yrs | no data | 0.0054% $98.2k |
2.4yrs
Average Tenure
58yo
Average Age
Experienced Management: SFM's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Interim CFO & Director | 7.1yrs | US$194.49k | 0.032% $590.3k | |
| CEO & Director | 0.7yrs | no data | no data | |
| Independent Non-Executive Chairman | 3yrs | US$194.49k | 0.018% $320.0k | |
| Independent Director | 6.8yrs | US$189.49k | 0.015% $281.3k | |
| Director | 0.3yrs | no data | 0.0088% $160.6k | |
| Independent Director | 2.3yrs | US$164.49k | 0.0058% $105.9k | |
| Independent Director | 3.5yrs | US$174.49k | 0.014% $262.3k |
3.0yrs
Average Tenure
58yo
Average Age
Experienced Board: SFM's board of directors are considered experienced (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 company bio, 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$1.825b
- Shares outstanding: 118.14m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SFM | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 2013 |
| 1FA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 2013 |
Biography
Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its stores offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, baked goods, dairy products, frozen foods, beer and wine, natural body care and household items. As of May 02, 2019, it operated 320 stores in 19 states. Sprouts Farmers Market, Inc. was founded in 2002 and is based in Phoenix, Arizona.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:45 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/29 |
| Annual Earnings | 2018/12/30 |
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.