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Sprouts Farmers
(NASDAQ:SFM)
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Rating:66Neutral
Price Target:
$88.00
▲(1.35% Upside)
Action:Downgraded
Date:09/06/26
The score is driven mainly by solid underlying operating performance and growth (strong income statement trends) but held back by weaker recent cash flow momentum and a levered capital structure. Near-term outlook is constructive on total sales and expansion, yet flat-to-negative comp guidance and expected margin pressure reduce confidence. Technical signals are neutral-to-soft, while valuation appears reasonable with a mid-teens P/E.
Positive Factors
Sustained Revenue Growth
Sprouts has demonstrated durable top-line expansion, supported by continued new-store performance and a constructive 2026 sales outlook. Sustained growth increases operating scale, broadens the customer base, and provides a foundation for ongoing investment in stores, digital commerce, and merchandising.
Negative Factors
Levered Balance Sheet
Rising debt and leverage reduce financial flexibility relative to a less indebted capital structure. If operating conditions tighten, more cash may need to support debt obligations, limiting the company’s ability to fund expansion, absorb weaker performance, or pursue other capital allocation priorities.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Sprouts has demonstrated durable top-line expansion, supported by continued new-store performance and a constructive 2026 sales outlook. Sustained growth increases operating scale, broadens the customer base, and provides a foundation for ongoing investment in stores, digital commerce, and merchandising.
Read all positive factors
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 (SFM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.59B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)15.5
Beta (1Y)0.57
Revenue Growth7.20%
EPS Growth7.23%
CountryUS
Employees36,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)5.26
Shares Outstanding93,247,630
10 Day Avg. Volume1,556,365
30 Day Avg. Volume1,768,196
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$95.09Price Target Upside9.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)5.57
Revenue Forecast (FY)$9.49B
Sprouts Farmers Business Overview & Revenue Model
Company Description
Sprouts Farmers Market, Inc. is a U.S.-based retailer that specializes in providing fresh, natural, and organic food options. The company's comprehensive product lineup includes both temperature-sensitive and shelf-stable goods. Among its perishab...
How the Company Makes Money
Sprouts primarily makes money by selling food and health-and-wellness products directly to consumers through its retail grocery stores. The company’s core revenue stream is net sales generated at the point of sale from a mix of fresh items (notabl...
Sprouts Farmers Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a mix of solid strategic and operational wins — revenue growth, strong e-commerce expansion, a robust new-store pipeline, product innovation and healthy cash generation — while acknowledging near-term execution and margin headwinds driven by lower comps, elevated fuel costs, SG&A deleverage and a live produce/food-safety issue. Management emphasized disciplined investment, ongoing tests on affordability and personalization, and confidence in returning to stronger comp performance as difficult compares roll off and initiatives gain traction.Positive Updates
Revenue Growth
Total sales of $2.3 billion in Q2, up $105 million or 5% year-over-year, driven by strong new store performance.
Negative Updates
Comparable Store Sales Decline
Comparable store sales declined 1% in Q2, pressuring fixed cost leverage and SG&A despite total sales growth driven by new stores.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total sales of $2.3 billion in Q2, up $105 million or 5% year-over-year, driven by strong new store performance.
Read all positive updates
Company Guidance
Sprouts updated 2026 guidance calling for 52‑week total sales growth of 5.5%–6.5% with comp sales of -0.5% to +0.5%, plans for 42 net new stores this year (43 openings, one closure) including at least 15 in Q3, and EBIT of $675M–$685M; the company expects a ~25.5% tax rate, capital expenditures (net of landlord reimbursements) of about $310M, and diluted EPS of $5.32–$5.40 assuming at least $300M of share repurchases (the company has repurchased $210M YTD with $626M remaining under its $1B authorization); Q3 guidance is comps of -0.5% to +1.5% and diluted EPS of $1.20–$1.24 with roughly 50 bps of EBIT margin pressure (including an embedded ~$2.5M/quarter fuel assumption for the back half); note 2026 is a 53‑week year with the extra week in Q4 and full‑year guidance is presented on a 52‑week basis.Sprouts Farmers Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.00B | 8.81B | 7.72B | 6.84B | 6.40B | 6.10B |
| Gross Profit | 3.37B | 3.27B | 2.96B | 2.54B | 2.36B | 2.22B |
| EBITDA | 1.00B | 995.76M | 645.07M | 518.59M | 493.49M | 464.38M |
| Net Income | 502.86M | 523.67M | 380.60M | 258.86M | 261.16M | 244.16M |
Balance Sheet | ||||||
| Total Assets | 4.33B | 4.16B | 3.64B | 3.33B | 3.07B | 2.92B |
| Cash, Cash Equivalents and Short-Term Investments | 223.93M | 257.28M | 265.16M | 201.79M | 293.23M | 245.29M |
| Total Debt | 2.11B | 1.94B | 1.68B | 1.66B | 1.54B | 1.51B |
| Total Liabilities | 2.83B | 2.76B | 2.32B | 2.18B | 2.02B | 1.96B |
| Stockholders Equity | 1.50B | 1.40B | 1.32B | 1.15B | 1.05B | 959.88M |
Cash Flow | ||||||
| Free Cash Flow | 355.18M | 467.73M | 414.84M | 239.76M | 247.32M | 262.42M |
| Operating Cash Flow | 673.03M | 716.00M | 645.21M | 465.07M | 371.33M | 364.80M |
| Investing Cash Flow | -317.86M | -248.27M | -230.38M | -238.34M | -124.01M | -102.38M |
| Financing Cash Flow | -392.16M | -474.05M | -351.50M | -318.05M | -199.13M | -186.86M |
Sprouts Farmers Technical Analysis
Negative
86.83
Price Trends
81.29
Negative
81.48
Negative
79.14
Negative
Market Momentum
-0.77
Positive
39.71
Neutral
25.86
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 86.83 is above the 20-day moving average (MA) of 81.68, above the 50-day MA of 81.29, and above the 200-day MA of 79.14, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 25.86 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 | $7.59B | 15.48 | 34.84% | ― | 7.20% | 7.23% | |
64 Neutral | $643.67M | 13.56 | 21.11% | 2.15% | 2.01% | 8.63% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $1.78B | 18.46 | 7.15% | 1.89% | 4.50% | -3.08% | |
54 Neutral | $35.90B | 33.87 | 14.66% | 2.46% | 1.14% | -53.47% | |
53 Neutral | $1.23B | -3.19 | -40.07% | ― | 5.12% | -4889.01% | |
48 Neutral | $6.09B | 156.88 | 2.91% | 5.10% | 2.75% | -95.14% |
* Consumer Defensive Sector Average
SFM
Sprouts Farmers
81.40
-54.61
-40.15%
KR
Kroger Company
58.59
-7.54
-11.40%
WMK
Weis Markets
71.98
2.15
3.08%
NGVC
Natural Grocers
27.93
-7.59
-21.37%
GO
Grocery Outlet Holding
12.38
-5.18
-29.50%
ACI
Albertsons Companies
12.55
-5.41
-30.14%
Sprouts Farmers Corporate Events
Business Operations and StrategyExecutive/Board Changes
Sprouts Farmers Market Announces CEO Succession Plan
Positive
Sep 1, 2026
On Sept. 1, 2026, Sprouts Farmers Market, Inc. announced a planned CEO succession that will take effect on Jan. 4, 2027, the first day of its 2027 fiscal year. Nick Konat, currently president and chief operating officer, will become chief executiv...
Business Operations and StrategyStock BuybackFinancial Disclosures
Sprouts Farmers Market Posts Steady Q2 2026 Results
Positive
Jul 29, 2026
Sprouts Farmers Market reported second-quarter 2026 results on July 29, 2026, for the 13-week period ended June 28, 2026, posting net sales of $2.3 billion, up 5% year over year, and diluted EPS of $1.37 versus $1.35 a year earlier. Despite a 1.0%...
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.