Sprouts Farmers (SFM)
NASDAQ:SFM
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Sprouts Farmers
(NASDAQ:SFM)
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Rating:65Neutral
Price Target:
$83.00
▲(9.14% Upside)
Action:ReiteratedDate:02/20/26
The score is driven by strong recent financial performance (sales, margins, and cash generation) and a reasonable P/E, offset by elevated leverage and a weak technical trend. The latest earnings call adds mixed near-term signals, with cautious 2026 comp and margin guidance despite ongoing buybacks and store expansion.
Positive Factors
Revenue & Margin Expansion
Sustained double-digit revenue growth in 2025 alongside net margin expansion to ~5.9% indicates structural improvement in assortment, pricing and supply-chain execution. Durable mix and margin gains provide operating leverage and support reinvestment, capital returns and resilience when comps normalize.
Negative Factors
Elevated Leverage
Leverage (debt-to-equity ~1.39) and rising total debt increase financial risk for a defensive retailer. Higher leverage constrains flexibility to absorb cyclical softness, elevates refinancing and interest exposure, and could force tougher tradeoffs between expansion, buybacks and liquidity in stressed scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Expansion
Sustained double-digit revenue growth in 2025 alongside net margin expansion to ~5.9% indicates structural improvement in assortment, pricing and supply-chain execution. Durable mix and margin gains provide operating leverage and support reinvestment, capital returns and resilience when comps normalize.
Read all positive factors
Sprouts Farmers (SFM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.30B
Dividend YieldN/A
Average Volume (3M)2.27M
Price to Earnings (P/E)15.1
Beta (1Y)0.50
Revenue Growth16.60%
EPS Growth49.76%
CountryUS
Employees35,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.92
Shares Outstanding94,576,390
10 Day Avg. Volume1,421,819
30 Day Avg. Volume2,265,583
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)5.62
Price to Sales (P/S)0.89
P/FCF Ratio16.85
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda9.94
Forecast
1Y Price Target
$90.73Price Target Upside19.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)5.55
Revenue Forecast (FY)$9.50B
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; a...
How the Company Makes Money
Sprouts primarily makes money by selling grocery and related consumer products directly to customers through its brick-and-mortar stores. Its core revenue stream is retail merchandise sales across key departments such as fresh produce (a major tra...
Sprouts Farmers Key Performance Indicators (KPIs)
Any
Comparable Store Sales Growth
Indicates the sales performance of existing stores compared to previous periods, revealing trends in customer demand and operational effectiveness.
Indicates the sales performance of existing stores compared to previous periods, revealing trends in customer demand and operational effectiveness.
Data provided by:
The Fly
The FlySprouts Farmers Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call showcased strong full-year financial performance in 2025 — double-digit sales growth, significant EPS expansion, robust new-store performance, product innovation and solid cash generation — but management emphasized a notable slowdown in comp momentum late in the year and expects a challenging first half of 2026 with margin pressure driven by fixed-cost deleverage, loyalty-related gross margin impacts, lapping benefits and customer affordability pressures. While the company has multiple strategic levers (loyalty personalization, self-distribution, assortment adjustments, and buybacks) and remains confident in long-term potential, the near-term outlook is cautious and balanced between meaningful accomplishments and material short-term headwinds.Positive Updates
Strong Full-Year Sales Growth
Total sales for fiscal 2025 increased nearly 14% to $8.8 billion, driven by comparable store sales growth of 7.3% and strong new-store performance.
Negative Updates
Slowing Comparable Sales Momentum and Traffic Weakness
Management reported a slowdown in comp momentum late in the year, Q4 traffic ended slightly negative after a disappointing holiday, and lower-engaged customers are visiting less often and purchasing fewer items.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Sales Growth
Total sales for fiscal 2025 increased nearly 14% to $8.8 billion, driven by comparable store sales growth of 7.3% and strong new-store performance.
Read all positive updates
Company Guidance
Sprouts said fiscal 2026 is a 53‑week year (the 53rd week is expected to add ~ $200 million in sales, ~$28 million in EBIT and ~$0.21 in diluted EPS); on a 52‑week basis management guided total sales growth of 4.5%–6.5% with comp sales of -1% to +1%, EBIT of $675–695 million and diluted EPS of $5.28–5.44 (which assumes some share repurchases), plans to repurchase at least $300 million of shares in 2026 (having deployed $100 million year‑to‑date and with ~$836 million remaining under the $1 billion authorization), expects net capital expenditures of $280–310 million, a corporate tax rate of ~25.5%, and that Q1 comps will be -3% to -1% with EPS of $1.66–1.70 (including ~85 bps of EBIT margin pressure from fixed‑cost deleverage and loyalty); the company plans to open 40+ stores in 2026, has 140+ approved locations and 95+ executed leases, and cautioned the first half will be challenged as it laps double‑digit comps with sequential improvement expected later in the year.Sprouts Farmers Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.81B | 7.72B | 6.84B | 6.40B | 6.10B |
| Gross Profit | 3.27B | 2.96B | 2.54B | 2.36B | 2.22B |
| EBITDA | 995.76M | 645.07M | 518.59M | 493.49M | 464.38M |
| Net Income | 523.67M | 380.60M | 258.86M | 261.16M | 244.16M |
Balance Sheet | |||||
| Total Assets | 4.16B | 3.64B | 3.33B | 3.07B | 2.92B |
| Cash, Cash Equivalents and Short-Term Investments | 257.28M | 265.16M | 201.79M | 293.23M | 245.29M |
| Total Debt | 1.94B | 1.68B | 1.66B | 1.54B | 1.51B |
| Total Liabilities | 2.76B | 2.32B | 2.18B | 2.02B | 1.96B |
| Stockholders Equity | 1.40B | 1.32B | 1.15B | 1.05B | 959.88M |
Cash Flow | |||||
| Free Cash Flow | 467.73M | 414.84M | 239.76M | 247.32M | 262.42M |
| Operating Cash Flow | 716.00M | 645.21M | 465.07M | 371.33M | 364.80M |
| Investing Cash Flow | -248.27M | -230.38M | -238.34M | -124.01M | -102.38M |
| Financing Cash Flow | -474.05M | -351.50M | -318.05M | -199.13M | -186.86M |
Sprouts Farmers Technical Analysis
Negative
76.05
Price Trends
74.52
Positive
76.94
Negative
103.53
Negative
Market Momentum
<0.01
Positive
47.31
Neutral
41.03
Neutral
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 76.05 is below the 20-day moving average (MA) of 78.26, above the 50-day MA of 74.52, and below the 200-day MA of 103.53, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFM.
Sprouts Farmers Risk Analysis
Sprouts Farmers disclosed 43 risk factors in its most recent earnings report. Sprouts Farmers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sprouts Farmers Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $609.46M | 12.71 | 23.11% | 1.99% | 7.19% | 35.90% | |
65 Neutral | $7.30B | 15.05 | 38.21% | ― | 16.60% | 49.76% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $8.88B | 8.31 | 28.54% | 3.49% | 2.08% | -1.63% | |
58 Neutral | $1.78B | 17.84 | 6.83% | 2.06% | 3.11% | 6.54% | |
55 Neutral | $41.65B | 40.33 | 13.04% | 2.15% | -1.77% | -70.83% | |
46 Neutral | $671.37M | -4.43 | -19.78% | ― | 7.22% | -108.99% |
* Consumer Defensive Sector Average
SFM
Sprouts Farmers
76.05
-84.14
-52.53%
KR
Kroger Company
68.03
1.25
1.88%
WMK
Weis Markets
71.15
-7.17
-9.15%
NGVC
Natural Grocers
26.27
-19.56
-42.67%
GO
Grocery Outlet Holding
7.04
-6.86
-49.35%
ACI
Albertsons Companies
16.85
-2.49
-12.86%
Sprouts Farmers Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Sprouts Farmers Market Posts Strong Q4 and 2025 Results
Positive
Feb 19, 2026
Sprouts Farmers Market, Inc. reported strong fourth-quarter and full-year 2025 results on February 19, 2026, with Q4 net sales up 8% to $2.1 billion, comparable store sales rising 1.6%, and diluted EPS climbing to $0.92 from $0.79 a year earlier. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.