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Sprouts Farmers Market

Nasdaq:SFM
Snowflake Description

Fair value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SFM
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Consumer Retailing
Company description

Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. The last earnings update was 48 days ago. More info.


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SFM Share Price and Events
7 Day Returns
-3%
NasdaqGS:SFM
1.4%
US Consumer Retailing
0.1%
US Market
1 Year Returns
-6.8%
NasdaqGS:SFM
18.4%
US Consumer Retailing
1.2%
US Market
SFM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sprouts Farmers Market (SFM) -3% -3% -10.6% -6.8% -9% -38.4%
US Consumer Retailing 1.4% 5.3% 5.9% 18.4% 28% 36.6%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • SFM underperformed the Consumer Retailing industry which returned 18.4% over the past year.
  • SFM underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
SFM
Industry
5yr Volatility vs Market
Related Companies

SFM Value

 Is Sprouts Farmers Market undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sprouts Farmers Market to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sprouts Farmers Market.

NasdaqGS:SFM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SFM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.468 (1 + (1- 21%) (69.82%))
0.816
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.816 * 5.96%)
7.6%

Discounted Cash Flow Calculation for NasdaqGS:SFM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sprouts Farmers Market is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SFM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.6%)
2019 128.18 Analyst x5 119.13
2020 147.48 Analyst x6 127.40
2021 152.15 Analyst x2 122.15
2022 163.00 Analyst x1 121.62
2023 172.20 Est @ 5.64% 119.41
2024 180.41 Est @ 4.77% 116.27
2025 187.91 Est @ 4.16% 112.56
2026 194.91 Est @ 3.73% 108.51
2027 201.60 Est @ 3.43% 104.31
2028 208.09 Est @ 3.22% 100.07
Present value of next 10 years cash flows $1,151.43
NasdaqGS:SFM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $208.09 × (1 + 2.73%) ÷ (7.6% – 2.73%)
$4,393.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,393.31 ÷ (1 + 7.6%)10
$2,112.71
NasdaqGS:SFM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,151.43 + $2,112.71
$3,264.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,264.14 / 117.96
$27.67
NasdaqGS:SFM Discount to Share Price
Calculation Result
Value per share (USD) From above. $27.67
Current discount Discount to share price of $20.12
= -1 x ($20.12 - $27.67) / $27.67
27.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sprouts Farmers Market is available for.
Intrinsic value
27%
Share price is $20.12 vs Future cash flow value of $27.67
Current Discount Checks
For Sprouts Farmers Market to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sprouts Farmers Market's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sprouts Farmers Market's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sprouts Farmers Market's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sprouts Farmers Market's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SFM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.17
NasdaqGS:SFM Share Price ** NasdaqGS (2019-06-18) in USD $20.12
United States of America Consumer Retailing Industry PE Ratio Median Figure of 22 Publicly-Listed Consumer Retailing Companies 19.97x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sprouts Farmers Market.

NasdaqGS:SFM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SFM Share Price ÷ EPS (both in USD)

= 20.12 ÷ 1.17

17.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sprouts Farmers Market is good value based on earnings compared to the US Consumer Retailing industry average.
  • Sprouts Farmers Market is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Sprouts Farmers Market's expected growth come at a high price?
Raw Data
NasdaqGS:SFM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
0.9%per year
United States of America Consumer Retailing Industry PEG Ratio Median Figure of 14 Publicly-Listed Consumer Retailing Companies 2.8x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:SFM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.17x ÷ 0.9%

19.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sprouts Farmers Market is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sprouts Farmers Market's assets?
Raw Data
NasdaqGS:SFM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $4.62
NasdaqGS:SFM Share Price * NasdaqGS (2019-06-18) in USD $20.12
United States of America Consumer Retailing Industry PB Ratio Median Figure of 30 Publicly-Listed Consumer Retailing Companies 2.35x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:SFM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SFM Share Price ÷ Book Value per Share (both in USD)

= 20.12 ÷ 4.62

4.35x

* Primary Listing of Sprouts Farmers Market.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sprouts Farmers Market is overvalued based on assets compared to the US Consumer Retailing industry average.
X
Value checks
We assess Sprouts Farmers Market's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Sprouts Farmers Market has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SFM Future Performance

 How is Sprouts Farmers Market expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sprouts Farmers Market expected to grow at an attractive rate?
  • Sprouts Farmers Market's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Sprouts Farmers Market's earnings growth is positive but not above the United States of America market average.
  • Sprouts Farmers Market's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SFM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SFM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 0.9%
NasdaqGS:SFM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 8.9%
United States of America Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 5.4%
United States of America Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SFM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SFM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,887 396 159 1
2022-12-31 7,656 372 147 2
2021-12-31 6,901 342 151 7
2020-12-31 6,334 317 152 19
2019-12-31 5,717 305 147 19
NasdaqGS:SFM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,334 302 148
2018-12-30 5,207 294 159
2018-09-30 5,082 286 186
2018-07-01 4,959 301 180
2018-04-01 4,821 300 179
2017-12-31 4,665 310 158
2017-10-01 4,506 317 136
2017-07-02 4,336 286 128
2017-04-02 4,184 271 124
2017-01-01 4,046 254 124
2016-10-02 3,991 257 136
2016-07-03 3,858 267 144
2016-04-03 3,729 270 138

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sprouts Farmers Market's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
  • Sprouts Farmers Market's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SFM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Sprouts Farmers Market Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SFM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.79 1.79 1.79 1.00
2022-12-31 1.56 1.62 1.49 2.00
2021-12-31 1.40 1.56 1.17 5.00
2020-12-31 1.32 1.40 1.09 12.00
2019-12-31 1.22 1.28 1.19 12.00
NasdaqGS:SFM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.17
2018-12-30 1.23
2018-09-30 1.42
2018-07-01 1.36
2018-04-01 1.33
2017-12-31 1.17
2017-10-01 0.99
2017-07-02 0.91
2017-04-02 0.86
2017-01-01 0.84
2016-10-02 0.90
2016-07-03 0.95
2016-04-03 0.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sprouts Farmers Market is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sprouts Farmers Market's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sprouts Farmers Market has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SFM Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sprouts Farmers Market's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sprouts Farmers Market's year on year earnings growth rate has been positive over the past 5 years.
  • Sprouts Farmers Market's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sprouts Farmers Market's 1-year earnings growth is negative, it can't be compared to the US Consumer Retailing industry average.
Earnings and Revenue History
Sprouts Farmers Market's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sprouts Farmers Market Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SFM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,334.03 148.30 1,440.50
2018-12-30 5,207.34 158.54 1,404.44
2018-09-30 5,081.93 185.53 1,396.52
2018-07-01 4,958.88 179.52 1,360.00
2018-04-01 4,821.16 178.78 1,319.73
2017-12-31 4,664.61 158.44 1,245.64
2017-10-01 4,506.38 135.75 1,083.63
2017-07-02 4,336.12 128.15 1,040.93
2017-04-02 4,183.79 124.39 1,004.85
2017-01-01 4,046.39 124.31 1,069.00
2016-10-02 3,990.99 135.52 941.84
2016-07-03 3,858.26 143.62 898.82
2016-04-03 3,728.77 137.73 859.76
2016-01-03 3,593.03 128.99 821.07
2015-09-27 3,397.32 118.52 778.26
2015-06-28 3,260.67 112.60 748.60
2015-03-29 3,102.32 111.43 713.10
2014-12-28 2,967.42 107.69 684.77
2014-09-28 2,841.07 99.23 657.80
2014-06-29 2,708.27 84.63 634.03
2014-03-30 2,586.82 66.94 612.27
2013-12-29 2,437.91 51.33 583.71
2013-09-29 2,308.62 45.39 557.55
2013-06-30 2,185.05 35.23 532.23
2013-03-31 1,992.80 28.07 498.14
2012-12-30 1,794.82 19.50 435.27

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sprouts Farmers Market has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Sprouts Farmers Market used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.
  • Sprouts Farmers Market's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sprouts Farmers Market's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sprouts Farmers Market has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SFM Health

 How is Sprouts Farmers Market's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sprouts Farmers Market's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sprouts Farmers Market's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Sprouts Farmers Market's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Sprouts Farmers Market's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sprouts Farmers Market Company Filings, last reported 2 months ago.

NasdaqGS:SFM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 556.52 1,657.06 19.95
2018-12-30 589.20 580.07 1.59
2018-09-30 641.30 563.07 17.18
2018-07-01 601.17 594.01 23.17
2018-04-01 648.48 502.80 21.36
2017-12-31 650.69 482.73 19.48
2017-10-01 616.62 484.58 18.89
2017-07-02 652.36 449.62 14.81
2017-04-02 643.93 414.99 21.33
2017-01-01 672.91 384.74 12.47
2016-10-02 759.35 329.85 50.29
2016-07-03 794.21 282.17 78.44
2016-04-03 818.04 281.01 145.65
2016-01-03 822.99 290.47 136.07
2015-09-27 816.64 291.29 132.00
2015-06-28 781.87 288.71 97.26
2015-03-29 739.97 379.53 177.72
2014-12-28 685.39 407.06 130.51
2014-09-28 650.56 384.51 118.45
2014-06-29 611.65 432.56 184.27
2014-03-30 567.72 433.46 149.05
2013-12-29 513.77 430.81 77.65
2013-09-29 485.63 472.09 91.74
2013-06-30 128.45 802.23 65.63
2013-03-31 397.60 538.70 86.92
2012-12-30 386.76 534.18 67.21
  • Sprouts Farmers Market's level of debt (92.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (76.2% vs 92.5% today).
  • Debt is well covered by operating cash flow (58.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).
X
Financial health checks
We assess Sprouts Farmers Market's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sprouts Farmers Market has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SFM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sprouts Farmers Market dividends. Estimated to be 0% next year.
If you bought $2,000 of Sprouts Farmers Market shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sprouts Farmers Market's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sprouts Farmers Market's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SFM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SFM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 3.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sprouts Farmers Market has not reported any payouts.
  • Unable to verify if Sprouts Farmers Market's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sprouts Farmers Market's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sprouts Farmers Market has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Sprouts Farmers Market's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Sprouts Farmers Market's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sprouts Farmers Market afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sprouts Farmers Market has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SFM Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Lukow
COMPENSATION $2,074,799
AGE 54
TENURE AS CEO 0.1 years
CEO Bio

Mr. Bradley S. Lukow, also known as Brad, is Chief Financial Officer and Treasurer of Sprouts Farmers Market, Inc. since March 1, 2016. Mr. Lukow is Interim Co-Chief Executive Officer of Sprouts Farmers Market, Inc. since December 31, 2018. He has been Chief Financial Officer, Treasurer and Secretary of Number Holdings, Inc. since January 12, 2015. He served as the Chief Financial Officer and Executive Vice President of Shoppers Drug Mart Corporation from January 07, 2009 to November 2014. He served as the Chief Financial Officer, Treasurer and Secretary of 99 Cents only Stores LLC from January 12, 2015 to June 24, 2015. Mr. Lukow served as Senior Vice President of Finance at Shoppers Drug Mart Corporation from 2000 to 2008. He served as Vice President of Retail Accounting from 1997 to 2000 and Director of Retail Accounting from 1994 to 1997 at Shoppers Drug Mart Corporation. He has 20-year career at Shoppers Drug Mart Corporation where he was responsible for all finance, strategy, real estate development, information technology and business development functions. Mr. Lukow served as the finance lead in the initial public offering of Shoppers Drug Mart Corporation in 2001. Prior to Shoppers, Mr. Lukow served in various roles at Loblaw, including financial reporting, budgeting and planning, taxation and internal audit from 1990 to 1994. He began his career at Ernst & Young in 1986. Mr. Lukow is a Chartered Professional Accountant and holds a B.A. in Honors Business Administration from the University of Western Ontario.

CEO Compensation
  • Brad's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brad's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Sprouts Farmers Market management team in years:

4.1
Average Tenure
54
Average Age
  • The tenure for the Sprouts Farmers Market management team is about average.
Management Team

Brad Lukow

TITLE
Interim Co-CEO
COMPENSATION
$2M
AGE
54
TENURE
0.1 yrs

Jim Nielsen

TITLE
Interim Co-CEO
COMPENSATION
$3M
AGE
47

Brandon Lombardi

TITLE
Chief Human Resources & Legal Officer and Corporate Secretary
COMPENSATION
$994K
AGE
41
TENURE
7.4 yrs

Dan Sanders

TITLE
Chief Operations Officer
COMPENSATION
$990K
AGE
59
TENURE
3.9 yrs

Dan Bruni

TITLE
Chief Information Officer
COMPENSATION
$669K
AGE
60
TENURE
4.3 yrs

Susannah Livingston

TITLE
Vice President of Investor Relations & Treasury
COMPENSATION
$321K

Ted Frumkin

TITLE
Chief Development Officer
COMPENSATION
$763K
AGE
57
TENURE
4.3 yrs

Dave McGlinchey

TITLE
Chief Merchandising Officer
AGE
45
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Sprouts Farmers Market board of directors in years:

4.3
Average Tenure
57
Average Age
  • The tenure for the Sprouts Farmers Market board of directors is about average.
Board of Directors

Joe Fortunato

TITLE
Non-Executive Chairman
COMPENSATION
$194K
AGE
65
TENURE
2.3 yrs

Terri Graham

TITLE
Independent Director
COMPENSATION
$189K
AGE
52
TENURE
6.1 yrs

Chip Molloy

TITLE
Independent Director
COMPENSATION
$194K
AGE
57
TENURE
6.4 yrs

Steven Townsend

TITLE
Lead Independent Director
COMPENSATION
$189K
AGE
65
TENURE
4.3 yrs

Shon Boney

TITLE
Director
COMPENSATION
$139K
AGE
50
TENURE
17.4 yrs

Kristen Blum

TITLE
Independent Director
COMPENSATION
$174K
AGE
52
TENURE
2.8 yrs

Joe O'Leary

TITLE
Independent Director
COMPENSATION
$164K
AGE
59
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Mar 19 Sell Theodore Frumkin Individual 04. Mar 19 06. Mar 19 -3,837 $23.18 $-88,081
06. Mar 19 Sell Brandon Lombardi Individual 04. Mar 19 06. Mar 19 -21,142 $23.18 $-485,256
06. Mar 19 Sell James Nielsen Individual 04. Mar 19 06. Mar 19 -17,267 $22.95 $-396,033
06. Mar 19 Sell Shawn Gensch Individual 04. Mar 19 06. Mar 19 -3,310 $23.18 $-75,989
06. Mar 19 Sell Dan Sanders Individual 04. Mar 19 06. Mar 19 -6,398 $23.18 $-146,850
10. Dec 18 Buy Kristen Blum Individual 07. Dec 18 10. Dec 18 4,000 $24.40 $96,800
04. Dec 18 Buy Steven Townsend Individual 04. Dec 18 04. Dec 18 2,000 $24.31 $48,629
30. Nov 18 Buy Bradley Lukow Individual 30. Nov 18 30. Nov 18 10,000 $23.09 $230,864
30. Nov 18 Buy Shon Boney Individual 30. Nov 18 30. Nov 18 88,500 $22.83 $2,020,154
30. Nov 18 Buy David McGlinchey Individual 30. Nov 18 30. Nov 18 5,000 $23.10 $115,500
03. Jul 18 Sell Amin Maredia Individual 02. Jul 18 02. Jul 18 -12,303 $22.03 $-271,035
03. Jul 18 Sell James Nielsen Individual 02. Jul 18 02. Jul 18 -1,165 $22.03 $-25,665
X
Management checks
We assess Sprouts Farmers Market's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sprouts Farmers Market has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SFM News

Simply Wall St News

Are Sprouts Farmers Market, Inc.’s Returns On Capital Worth Investigating?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Sprouts Farmers Market: 0.10 = US$234m ÷ (US$2.6b - US$378m) (Based on the trailing twelve months to March 2019.) Therefore, Sprouts Farmers Market has an ROCE of 10%. … Do Sprouts Farmers Market's Current Liabilities Skew Its ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Have Insiders Been Buying Sprouts Farmers Market, Inc. (NASDAQ:SFM) Shares?

NasdaqGS:SFM Recent Insider Trading, May 14th 2019 Sprouts Farmers Market is not the only stock that insiders are buying. … Sprouts Farmers Market Insiders Are Selling The Stock The last quarter saw substantial insider selling of Sprouts Farmers Market shares. … Insider Ownership of Sprouts Farmers Market For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Here's What Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) P/E Ratio Is Telling Us

We'll look at Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Sprouts Farmers Market's P/E ratio is 17.19. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Does Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) Balance Sheet Tell Us About It?

Investors are always looking for growth in small-cap stocks like Sprouts Farmers Market, Inc. … (NASDAQ:SFM), with a market cap of US$2.6b. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

The Sprouts Farmers Market (NASDAQ:SFM) Share Price Is Down 39% So Some Shareholders Are Getting Worried

So we wouldn't blame long term Sprouts Farmers Market, Inc. … During the unfortunate half decade during which the share price slipped, Sprouts Farmers Market actually saw its earnings per share (EPS) improve by 26% per year. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.

Simply Wall St -

Should Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) Recent Earnings Worry You?

Assessing Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) past track record of performance is a useful exercise for investors. … Below, I assess SFM's latest performance announced on 30 December 2018 and evaluate these figures to its historical trend and industry movements. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 16%, indicating the rate at which SFM is growing has slowed down

Simply Wall St -

Does Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) Debt Level Pose A Problem?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Sprouts Farmers Market, Inc. … Don’t forget that this is a general and concentrated examination of Sprouts Farmers Market’s financial health, so you should conduct further analysis. … Check out our latest analysis for Sprouts Farmers Market

Simply Wall St -

Boasting A 27% Return On Equity, Is Sprouts Farmers Market, Inc. (NASDAQ:SFM) A Top Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Sprouts Farmers Market, Inc. … Our data shows Sprouts Farmers Market has a return on equity of 27% for the last year.

Simply Wall St -

What Can We Make Of Sprouts Farmers Market, Inc.’s (NASDAQ:SFM) High Return On Capital?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

What Are Analysts Expecting From Sprouts Farmers Market, Inc. (NASDAQ:SFM) Over The Next Year?

Help shape the future of investing tools and you could win a $250 gift card! … (NASDAQ:SFM) released its earnings in September 2018, … as a -10% fall in profits is expected in the upcoming year

Simply Wall St -

SFM Company Info

Description

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.

Details
Name: Sprouts Farmers Market, Inc.
SFM
Exchange: NasdaqGS
Founded: 2002
$2,373,274,538
117,955,991
Website: http://www.sprouts.com
Address: Sprouts Farmers Market, Inc.
5455 East High Street,
Suite 111,
Phoenix,
Arizona, 85054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SFM Common Stock Nasdaq Global Select US USD 02. Aug 2013
DB 1FA Common Stock Deutsche Boerse AG DE EUR 02. Aug 2013
Number of employees
Current staff
Staff numbers
30,000
Sprouts Farmers Market employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 00:33
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.