NasdaqGS:SFM

Stock Analysis Report

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Executive Summary

Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States.


Snowflake Analysis

Outstanding track record and good value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

SFM

1.2%

US Consumer Retailing

1.2%

US Market


1 Year Return

41.2%

SFM

16.2%

US Consumer Retailing

16.8%

US Market

Return vs Industry: SFM exceeded the US Consumer Retailing industry which returned 15.3% over the past year.

Return vs Market: SFM exceeded the US Market which returned 16.4% over the past year.


Shareholder returns

SFMIndustryMarket
7 Day-1.9%1.2%1.2%
30 Day1.7%3.2%4.9%
90 Day-3.2%9.0%20.0%
1 Year41.2%41.2%18.0%16.2%19.3%16.8%
3 Year2.2%2.2%55.2%46.7%43.7%34.4%
5 Year16.5%16.5%68.2%51.5%75.5%56.6%

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

Valuation

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

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFM ($24.77) is trading below our estimate of fair value ($46.71)

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 (13.5x) compared to the US Consumer Retailing industry average (20.5x).

PE vs Market: SFM is good value based on its PE Ratio (13.5x) compared to the US market (18.9x).


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 (3.9x) compared to the US Consumer Retailing industry average (1.8x).


Next Steps

Future Growth

How is Sprouts Farmers Market forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

-5.0%

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 (-5% per year).

Earnings vs Market: SFM's earnings are forecast to decline over the next 3 years (-5% per year).

High Growth Earnings: SFM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SFM's revenue (5.4% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SFM's revenue (5.4% 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 (16.7%).


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 (3.6%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: SFM's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: SFM's earnings growth over the past year (52.6%) exceeds its 5-year average (8% per year).

Earnings vs Industry: SFM earnings growth over the past year (52.6%) exceeded the Consumer Retailing industry 20.8%.


Return on Equity

High ROE: SFM's Return on Equity (29.2%) is considered high.


Next Steps

Financial Health

How is Sprouts Farmers Market's financial position?


Financial Position Analysis

Short Term Liabilities: SFM's short term assets ($612.9M) exceed its short term liabilities ($572.8M).

Long Term Liabilities: SFM's short term assets ($612.9M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: SFM's debt to equity ratio (62.6%) is considered high.

Reducing Debt: SFM's debt to equity ratio has increased from 20.4% to 62.6% over the past 5 years.

Debt Coverage: SFM's debt is well covered by operating cash flow (107.3%).

Interest Coverage: SFM's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


Next Steps

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?

0.5yrs

Average management tenure


CEO

Jack Sinclair (59 yo)

1.17yrs

Tenure

US$6,739,494

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. He served as Chief Executive Officer of 99 Cents only Stores LL ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD6.74M) is about average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Insufficient data to compare Jack's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jack Sinclair
CEO & Director1.17yrsUS$6.74m0.028%
$ 820.6k
Dan Sanders
Chief Operations Officer3.83yrsUS$1.08mno data
Brandon Lombardi
Chief Human Resources & Legal Officer and Corporate Secretary8.58yrsUS$1.13m0.011%
$ 330.1k
David McGlinchey
Chief Format Officer2yrsUS$1.11m0.0069%
$ 201.0k
Denise Paulonis
CFO & Treasurer0.50yrno datano data
Stacy Hilgendorf
Principal Accounting Officer0.33yrno datano data
Susannah Livingston
Vice President of Investor Relations & Treasuryno dataUS$321.36kno data
Gilliam Phipps
Senior VP & Chief Marketing Officer0.33yrno datano data
J. Neal
Chief Fresh Merchandising Officer0.58yrno datano data
Dan Croce
Senior Vice President of Store Operations - East Division0.17yrno datano data
Hunter Bennett
Senior Vice President of Information Technology0.17yrno datano data
Jim Wallace
Senior Vice President of Store Operations - West Division0.17yrno datano data

0.5yrs

Average Tenure

49yo

Average Age

Experienced Management: SFM's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jack Sinclair
CEO & Director1.17yrsUS$6.74m0.028%
$ 820.6k
Lawrence Molloy
Independent Director7.58yrsUS$2.07m0.044%
$ 1.3m
Joseph Fortunato
Independent Non-Executive Chairman3.5yrsUS$240.17k0.022%
$ 655.9k
Terri Graham
Independent Director7.25yrsUS$230.17k0.020%
$ 593.9k
Joel Anderson
Independent Director0.75yrUS$63.88k0.0088%
$ 257.7k
Joseph O'Leary
Independent Director2.83yrsUS$200.17k0.011%
$ 312.6k
Douglas Rauch
Independent Director0.50yrno datano data
Kristen Blum
Independent Director4yrsUS$210.17k0.019%
$ 563.6k

3.2yrs

Average Tenure

59yo

Average Age

Experienced Board: SFM's board of directors are considered experienced (3.2 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$2.921b
  • Shares outstanding: 117.94m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2013
1FADB (Deutsche Boerse AG)YesCommon StockDEEURAug 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, packaged groceries, meat and seafood, deli, v ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:51
End of Day Share Price2020/08/10 00:00
Earnings2020/06/28
Annual Earnings2019/12/29


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.