Sprouts Farmers (SFM) AI Stock Analysis

• Market Cap: $7.67B
• Dividend Yield: N/A
• Average Volume (3M): 3.23M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.63
• Revenue Growth: 16.60%
• EPS Growth: 49.76%
• Country: US
• Employees: 35,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 1.22
• Shares Outstanding: 97,369,440
• 10 Day Avg. Volume: 4,672,795
• 30 Day Avg. Volume: 3,226,843
• PEG Ratio: 0.67
• Price to Book (P/B): 9.67
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 30.80
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 19.36
• 1Y Price Target: $120.82
• Price Target Upside: 54.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $85.00 ▲(8.95% Upside)

Sprouts Farmers Market's overall stock score of 71 reflects strong financial performance and positive earnings call highlights, including robust earnings and sales growth. However, technical analysis indicates bearish momentum, and valuation concerns arise from the lack of a dividend yield. The company's strategic expansion and e-commerce growth are promising, but potential challenges from consumer softening and competition need to be monitored.

Positive Factors

E-commerce Growth

The significant growth in e-commerce sales indicates a successful adaptation to digital retail trends, enhancing long-term revenue potential and market reach.

Store Expansion

Aggressive store expansion supports market penetration and revenue growth, positioning the company for sustained long-term growth.

Private Label Growth

Growth in private label sales enhances profit margins and brand loyalty, providing a competitive edge and financial stability.

Negative Factors

Softening Consumer Impact

The softening consumer demand poses a risk to revenue growth and could impact profitability if the trend continues.

Margin Pressures

Rising SG&A expenses could pressure margins, affecting the company's ability to maintain profitability amidst expansion efforts.

Market Competition Concerns

Increased competition may erode market share and impact growth, necessitating strategic adjustments to maintain competitive positioning.

Sprouts Farmers Business Overview & Revenue Model

Company Description

Sprouts Farmers Market, Inc. offers fresh, natural, and organic food products in the United States. 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. As of January 2, 2022, it operated 374 stores in 23 states. Sprouts Farmers Market, Inc. was founded in 2002 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

Sprouts Farmers Market generates revenue primarily through the sale of grocery products in their retail stores. Key revenue streams include fresh produce, packaged groceries, vitamins and supplements, and prepared foods. The company benefits from a strong focus on organic and natural products, which often carry higher margins compared to conventional items. Additionally, Sprouts engages in promotional pricing and loyalty programs to drive sales. The company also leverages partnerships with local farmers and suppliers to enhance product offerings and appeal to health-conscious consumers. Seasonal promotions and community events further contribute to customer engagement and sales growth.

Sprouts Farmers Financial Statement Overview

Summary

Sprouts Farmers Market demonstrates strong financial performance with consistent revenue growth and robust profitability metrics. The income statement shows a 4.05% revenue increase and a healthy net profit margin of 5.77%. The balance sheet is moderate with a manageable debt-to-equity ratio of 1.29, but the equity ratio suggests potential financial vulnerability. Cash flow is positive, with a 3.39% growth in free cash flow, indicating strong cash generation capabilities.

Income Statement

Sprouts Farmers shows strong performance in the income statement with consistent revenue growth, evidenced by a 4.05% increase in TTM. The gross profit margin is robust at 38.69%, indicating efficient cost management. Net profit margin has improved to 5.77%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.29, which is manageable but indicates reliance on debt financing. Return on equity is impressive at 36.53%, showcasing effective use of shareholder funds. However, the equity ratio is relatively low, suggesting potential vulnerability to financial fluctuations.

Cash Flow

Cash flow analysis shows positive trends with a 3.39% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is slightly above 1, demonstrating efficient conversion of income to cash. The free cash flow to net income ratio is healthy at 67.07%, supporting sustainable operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	6.40B	7.72B	6.84B	5.63B	5.21B	4.66B
Gross Profit	2.49B	2.96B	2.54B	1.89B	1.75B	1.35B
EBITDA	639.53M	645.07M	518.59M	422.01M	335.33M	324.69M
Net Income	405.34M	380.60M	258.86M	149.63M	158.54M	158.44M
Balance Sheet
Total Assets	3.78B	3.64B	3.33B	2.72B	1.68B	1.58B
Cash, Cash Equivalents and Short-Term Investments	261.40M	265.16M	201.79M	85.31M	1.59M	19.48M
Total Debt	1.76B	1.68B	1.66B	1.74B	580.07M	482.73M
Total Liabilities	2.43B	2.32B	2.18B	2.14B	1.09B	930.91M
Stockholders Equity	1.36B	1.32B	1.15B	581.95M	589.20M	650.69M
Cash Flow
Free Cash Flow	446.31M	414.84M	239.76M	171.98M	117.30M	110.94M
Operating Cash Flow	619.39M	645.21M	465.07M	355.21M	294.38M	309.57M
Investing Cash Flow	-173.08M	-230.38M	-238.34M	-183.23M	-177.08M	-198.59M
Financing Cash Flow	-317.78M	-351.50M	-318.05M	-87.44M	-134.53M	-103.96M

Sprouts Farmers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFM, the sentiment is Negative. The current price of 78.02 is below the 20-day moving average (MA) of 95.79, below the 50-day MA of 109.67, and below the 200-day MA of 145.48, indicating a bearish trend. The MACD of -9.79 indicates Positive momentum. The RSI at 24.08 is Positive, neither overbought nor oversold. The STOCH value of 14.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFM.

Sprouts Farmers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	71 Outperform	$7.67B	15.30	36.96%	―	16.60%	49.76%
KR	71 Outperform	$43.01B	16.43	24.83%	2.01%	-2.13%	3.22%
ACI	67 Neutral	$9.74B	10.49	32.04%	3.37%	2.08%	-1.63%
IMKTA	66 Neutral	$1.36B	24.69	3.58%	0.90%	-7.96%	-64.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NGVC	58 Neutral	$728.79M	16.90	23.58%	1.52%	8.51%	40.83%
GO	51 Neutral	$1.19B	―	-0.37%	―	7.22%	-108.99%

Sprouts Farmers Corporate Events

Sprouts Farmers Market Reports Strong Growth Amid Challenges

Sprouts Farmers Market’s recent earnings call painted a picture of robust growth tempered by competitive challenges. The company reported strong earnings growth and successful new store openings, alongside a positive e-commerce performance. However, concerns were raised about comp sales due to consumer softening and competitive pressures, indicating a mixed sentiment overall.

Sprouts Farmers Market Reports Strong Q3 2025 Results

Sprouts Farmers Market, Inc., headquartered in Phoenix, Arizona, is a leading specialty retailer in the United States, focusing on fresh, natural, and organic food products. The company operates over 450 stores across 24 states, offering a unique grocery experience with an emphasis on health and wellness.

Sprouts Farmers Reports Strong Q3 2025 Performance

Sprouts Farmers Market reported a strong third quarter for 2025, with net sales reaching $2.2 billion, marking a 13% increase from the previous year. The company opened nine new stores, bringing the total to 464, and achieved a comparable store sales growth of 5.9%. Sprouts also authorized a new $1 billion share repurchase program and entered into a new $600 million credit facility. Looking ahead, the company projects a full-year net sales growth of approximately 14% and plans to open 37 new stores by the end of 2025.

The most recent analyst rating on (SFM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Sprouts Farmers stock, see the SFM Stock Forecast page.

Sprouts Farmers Signs New Distribution Agreement

On September 3, 2025, Sprouts Farmers Market, Inc. entered into a new ten-year Distribution Agreement with KeHE Distributors, LLC, replacing their previous agreement from 2018. This agreement outlines the terms for product pricing, service levels, and distribution procedures, potentially impacting the company’s operational efficiency and market positioning.

The most recent analyst rating on (SFM) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on Sprouts Farmers stock, see the SFM Stock Forecast page.

Sprouts Farmers Approves $1 Billion Share Buyback

On August 13, 2025, Sprouts Farmers Market’s Board of Directors approved a new $1 billion share repurchase authorization, replacing the previous program with $143 million remaining. This initiative, reflecting the company’s strong cash flow and strategic confidence, aims to return excess cash to shareholders and may be adjusted based on market conditions and investment opportunities.

The most recent analyst rating on (SFM) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Sprouts Farmers stock, see the SFM Stock Forecast page.

Sprouts Farmers Market’s Strong Q2 Earnings Call Highlights

Sprouts Farmers Market Shines in Strong Earnings Call