NasdaqGS:SFM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

4.1%

SFM

0.3%

US Consumer Retailing

0.07%

US Market


1 Year Return

-29.1%

SFM

14.0%

US Consumer Retailing

8.9%

US Market

Return vs Industry: SFM underperformed the US Consumer Retailing industry which returned 14% over the past year.

Return vs Market: SFM underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

SFMIndustryMarket
7 Day4.1%0.3%0.07%
30 Day-0.6%1.9%-0.3%
90 Day12.4%6.6%-1.6%
1 Year-29.1%-29.1%16.2%14.0%11.3%8.9%
3 Year-13.1%-13.1%55.6%45.6%46.3%36.8%
5 Year-33.7%-33.7%68.8%50.4%62.1%44.3%

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?

8.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFM ($19.1) is trading below our estimate of fair value ($20.81)

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 (16.7x) compared to the Consumer Retailing industry average (20x).

PE vs Market: SFM is good value based on its PE Ratio (16.7x) compared to the US market (17.8x).


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 (4.2x) 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 19 analysts?

-1.9%

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 (-1.9% per year).

Earnings vs Market: SFM's earnings are forecast to decline over the next 3 years (-1.9% per year).

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

Revenue vs Market: SFM's revenue (8.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SFM's revenue (8.1% 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 (20.1%)


Next Steps

Past Performance

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

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SFM's earnings have grown by 10.4% 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 (-20.9%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-14.2%).


Return on Equity

High ROE: SFM's Return on Equity (26.7%) is considered high.


Return on Assets

ROA vs Industry: SFM has a higher Return on Assets than the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: SFM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sprouts Farmers Market's financial position?


Financial Position Analysis

Short Term Liabilities: SFM's short term assets ($380.0M) do not cover its short term liabilities ($449.6M)

Long Term Liabilities: SFM's short term assets (380.0M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: SFM's debt to equity ratio (98%) is considered high

Reducing Debt: SFM's debt to equity ratio has increased from 50.2% to 98% over the past 5 years.

Debt Coverage: SFM's debt is well covered by operating cash flow (71.5%).

Interest Coverage: SFM's interest payments on its debt are well covered by EBIT (8.9x 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 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Sprouts Farmers Market's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Jack Sinclair (58yo)

0.3yrs

Tenure

0

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  ...


Management Age and Tenure

2.7yrs

Average Tenure

58yo

Average Age

Experienced Management: SFM's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

58yo

Average Age

Experienced Board: SFM's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$88,08106 Mar 19
Theodore Frumkin
EntityIndividual
Role
Head of Corporate Development
Chief Development Officer
Shares3,837
Max PriceUS$23.18
SellUS$485,25606 Mar 19
Brandon Lombardi
EntityIndividual
Role
Chief Legal Officer
Chief Human Resources
Shares21,142
Max PriceUS$23.18
SellUS$75,98906 Mar 19
Shawn Gensch
EntityIndividual
Shares3,310
Max PriceUS$23.18
SellUS$396,03306 Mar 19
James Nielsen
EntityIndividual
Role
Senior Key Executive
Senior Advisor (Leave of Absence)
Shares17,267
Max PriceUS$22.95
SellUS$146,85006 Mar 19
Dan Sanders
EntityIndividual
Role
Senior Key Executive
Chief Operations Officer
Shares6,398
Max PriceUS$23.18
BuyUS$96,80010 Dec 18
Kristen Blum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$24.40
BuyUS$48,62904 Dec 18
Steven Townsend
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$24.31
BuyUS$2,020,15430 Nov 18
Shon Boney
EntityIndividual
Shares88,500
Max PriceUS$22.83
BuyUS$115,50030 Nov 18
David McGlinchey
EntityIndividual
Role
Senior Key Executive
Chief Merchandising Officer
Shares5,000
Max PriceUS$23.10
BuyUS$230,86430 Nov 18
Bradley Lukow
EntityIndividual
Shares10,000
Max PriceUS$23.09

Ownership Breakdown


Management Team

  • Chip Molloy (58yo)

    Interim CFO & Director

    • Tenure: 6.8yrs
    • Compensation: US$194.49k
  • Dan Bruni (61yo)

    Chief Information Officer

    • Tenure: 4.7yrs
    • Compensation: US$669.48k
  • Jack Sinclair (58yo)

    CEO & Director

    • Tenure: 0.3yrs
  • Dan Sanders (60yo)

    Chief Operations Officer

    • Tenure: 4.3yrs
    • Compensation: US$990.17k
  • Brandon Lombardi (42yo)

    Chief Human Resources

    • Tenure: 7.8yrs
    • Compensation: US$994.03k
  • Jim Nielsen (48yo)

    Senior Advisor (Leave of Absence)

    • Tenure: 0.2yrs
    • Compensation: US$2.53m
  • Ted Frumkin (58yo)

    Chief Development Officer

    • Tenure: 4.7yrs
    • Compensation: US$763.13k
  • Susannah Livingston

    Vice President of Investor Relations & Treasury

    • Tenure: 0yrs
    • Compensation: US$321.36k
  • Dave McGlinchey (46yo)

    Chief Merchandising Officer

    • Tenure: 1.2yrs

Board Members

  • Steven Townsend (66yo)

    Lead Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$189.49k
  • Chip Molloy (58yo)

    Interim CFO & Director

    • Tenure: 6.8yrs
    • Compensation: US$194.49k
  • Joe Fortunato (66yo)

    Non-Executive Chairman

    • Tenure: 2.7yrs
    • Compensation: US$194.49k
  • Terri Graham (54yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$189.49k
  • Jack Sinclair (58yo)

    CEO & Director

    • Tenure: 0.3yrs
  • Joe O'Leary (60yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$164.49k
  • Kristen Blum (53yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$174.49k

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$2.256b
  • Shares outstanding: 118.11m
  • 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, bulk foods, vitamins and supplements, package ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:28
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.