A Business at a Glance
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Sprouts Farmers Market, Inc.
SFM
$7.4B
Mkt Cap
$74.89
+1.91%
Sprouts Farmers Market, Inc. (SFM) has a current P/E ratio of 14.1, compared to its historical median P/E of 19.5. The stock is currently considered Fair based on its historical valuation range.
Sprouts Farmers Market, Inc. (SFM) has a 5-year average return on invested capital (ROIC) of 35.9%. This indicates strong capital allocation and a potential competitive advantage.
Sprouts Farmers Market, Inc. (SFM) has a market capitalization of $7.1B. It is classified as a mid-cap stock.
Sprouts Farmers Market, Inc. (SFM) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 5.55%.
Based on historical P/E analysis, Sprouts Farmers Market, Inc. (SFM) appears fair. The current P/E of 14.1 is 28% below its historical median of 19.5. The estimated fair value CAGR (P/E method) is 20.5%.
Sprouts Farmers Market, Inc. (SFM) operates in the Retail-Grocery Stores industry, within the Consumer Defensive sector.
Sprouts Farmers Market operates a specialty grocery retailer featuring a distinctive "flipped" store format with fresh produce at the center, complemented by a curated assortment of natural, organic, plant-based, and gluten-free products targeting "health enthusiasts" and "selective shoppers." The company generates revenue through a small-box retail model with approximately 20% of selling square footage dedicated to produce, supported by an omnichannel distribution strategy including delivery and pickup via website and mobile app. Unit economics are characterized by rapid store expansion—477 locations across 24 states as of December 28, 2025, with management targeting approximately 10% annual unit growth—and a focus on fresh, locally sourced items that command premium positioning. The company operates a vertically integrated supply chain with distribution centers positioned to serve stores within a 250-mile radius, and has transitioned to self-distribution for meat and seafood to improve freshness and leverage existing capacity. Sprouts Brand private label products represent over 25% of total sales, with organic products comprising more than 55% of produce sales and over 34% of total company sales, reflecting strong customer demand for attribute-driven products. The company differentiates through personalized customer engagement via its nationwide Sprouts Rewards loyalty program launched in 2025, data-driven inventory management, and a purpose-driven workforce model designed to create a best-in-class shopping experience that builds customer trust and loyalty.
【Stabilizing growth with affordability focus】 Management expects sequential improvement in business performance through 2026 as year-over-year comparisons ease, particularly in the back half when the company anticipates margins to stabilize and potentially improve. The company is implementing targeted price adjustments on essential items and a more focused promotional strategy to strengthen value perception among target customers while maintaining disciplined cost control and strategic investments in talent and technology. Loyalty program benefits are expected to build throughout the year as participation grows and personalization capabilities mature, driving improved customer frequency, basket size, and retention. Management remains confident in the long-term growth algorithm and strategy, positioning Sprouts to reaccelerate growth through continued execution on foraging and innovation, supply chain advantages from self-distribution, new store expansion, and technology investments that support operational scalability and customer experience enhancement.
| Metric | Target | Period |
|---|---|---|
| Total sales growth | 4.5%-6.5% | FY2026 (52-week basis) |
| Comparable store sales | -1% to +1% | FY2026 (52-week basis) |
| New store openings | at least 40 | FY2026 |
| Earnings before interest and taxes | $675 million to $695 million | FY2026 |
| Earnings per share | $5.32 to $5.48 | FY2026 |
| Corporate tax rate | approximately 25.5% | FY2026 |
| Capital expenditures (net of landlord reimbursements) | $280 million to $310 million | FY2026 |
Total sales growth (FY2026 (52-week basis)): “For the full year, on a 52-week basis, we expect total sales growth to be between 4.5%-6.5%”
Comparable store sales (FY2026 (52-week basis)): “we are maintaining our outlook for total sales growth between 4.5%-6.5% and comp sales between -1% to +1%”
New store openings (FY2026): “We still plan to open at least 40 new stores in 2026”
Earnings before interest and taxes (FY2026): “Earnings before interest and taxes are expected to be between $675 million and $695 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.9B | 8.8B | 7.7B | 6.8B | 6.1B | 6.5B |
| Net Income | 507M | 524M | 381M | 259M | 244M | 287M |
| EPS | $5.27 | $5.31 | $3.75 | $2.50 | $2.10 | $2.43 |
| Free Cash Flow | 362M | 468M | 415M | 240M | 262M | 372M |
| ROIC | 42.4% | 46.9% | 35.4% | 25.9% | 30.0% | 41.3% |
| Gross Margin | 38.7% | 38.8% | 38.1% | 36.9% | 36.2% | 36.8% |
| Debt/Equity | 0.01 | 0.01 | 0.01 | 0.11 | 0.26 | 0.01 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 675M | 686M | 504M | 350M | 334M | 392M |
| Operating Margin | 7.6% | 7.8% | 6.5% | 5.1% | 5.5% | 6.1% |
| ROE | 35.4% | 38.4% | 30.8% | 24.6% | 26.5% | 32.6% |
| Shares Outstanding | 95M | 99M | 101M | 104M | 116M | 118M |
Sprouts Farmers Market, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Sprouts Farmers Market, Inc. trades at 14.1x trailing earnings, compared to its 15-year median P/E of 19.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 15.1x vs a median of 23.2x. The company's 5-year average ROIC is 35.9% with a gross margin of 37.4%. Total shareholder yield (buybacks) is 5.6%. At current prices, the estimated annualized return to fair value is +20.3%.
Sprouts Farmers Market, Inc. (SFM) reported annual revenue of $8.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Sprouts Farmers Market, Inc. (SFM) has a net profit margin of 5.9%. This is a modest margin.
Sprouts Farmers Market, Inc. (SFM) generated $468 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Sprouts Farmers Market, Inc. (SFM) has a debt-to-equity ratio of 0.01. This indicates a conservatively financed balance sheet.
Sprouts Farmers Market, Inc. (SFM) reported earnings per share (EPS) of $5.31 in its most recent fiscal year.
Sprouts Farmers Market, Inc. (SFM) has a return on equity (ROE) of 38.4%. This indicates the company generates strong returns for shareholders.
Sprouts Farmers Market, Inc. (SFM) has a 5-year average gross margin of 37.4%. This indicates decent pricing power.
The Ledger Terminal provides 12 years of financial data for Sprouts Farmers Market, Inc. (SFM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Sprouts Farmers Market, Inc. (SFM) has a book value per share of $14.23, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects sequential improvement in business performance through 2026 as year-over-year comparisons ease, particularly in the back half when the company anticipates margins to stabilize and potentially improve. The company is implementing targeted price adjustments on essential items and a more focused promotional strategy to strengthen value perception among target customers while maintaining disciplined cost control and strategic investments in talent and technology. Loyalty program benefits are expected to build throughout the year as participation grows and personalization capabilities mature, driving improved customer frequency, basket size, and retention. Management remains confident in the long-term growth algorithm and strategy, positioning Sprouts to reaccelerate growth through continued execution on foraging and innovation, supply chain advantages from self-distribution, new store expansion, and technology investments that support operational scalability and customer experience enhancement.
Based on recent SEC filings and earnings calls, Sprouts Farmers Market, Inc. (SFM) has provided the following forward guidance: Total sales growth: 4.5%-6.5% (FY2026 (52-week basis)); Comparable store sales: -1% to +1% (FY2026 (52-week basis)); New store openings: at least 40 (FY2026); Earnings before interest and taxes: $675 million to $695 million (FY2026); Earnings per share: $5.32 to $5.48 (FY2026), plus 2 additional metrics.
Earnings per share (FY2026): “We are increasing our earnings per share outlook to be between $5.32 and $5.48, assuming at least $300 million in share repurchases”
Corporate tax rate (FY2026): “We expect our corporate tax rate to be approximately 25.5%”
Capital expenditures (net of landlord reimbursements) (FY2026): “we expect capital expenditures net of landlord reimbursements to be between $280 million and $310 million”