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Sprouts Farmers
(NASDAQ:SFM)
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Rating:72Outperform
Price Target:
$98.00
▲(32.16% Upside)
Action:Upgraded
Date:05/22/26
The score is driven primarily by solid underlying fundamentals (revenue growth and improved profitability) and an attractive valuation (low P/E). Offsetting these positives are balance-sheet leverage and weaker recent cash conversion, plus near-term operating headwinds highlighted on the earnings call (negative comps and expected margin pressure), while technicals are moderately supportive but not fully aligned with a long-term uptrend.
Positive Factors
Revenue Growth
Consistent top-line growth driven by new-store productivity and category strength indicates an expanding revenue base. Durable sales growth supports scale benefits, merchandising leverage, and reinvestment potential, helping the company absorb short-term margin swings over multiple quarters.
Negative Factors
Elevated Leverage
Meaningful leverage raises financial risk and reduces flexibility to fund growth or withstand demand shocks. In a low-margin, high-volume grocery model, elevated debt amplifies interest and refinancing exposure and can constrain strategic choices if cash flow weakens or capex needs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent top-line growth driven by new-store productivity and category strength indicates an expanding revenue base. Durable sales growth supports scale benefits, merchandising leverage, and reinvestment potential, helping the company absorb short-term margin swings over multiple quarters.
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
$8.46B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)17.1
Beta (1Y)0.47
Revenue Growth10.25%
EPS Growth17.03%
CountryUS
Employees35,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)5.26
Shares Outstanding94,044,304
10 Day Avg. Volume2,138,273
30 Day Avg. Volume2,212,802
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 Cap1.10
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit2.83
Enterprise Value/Ebitda9.34
Forecast
1Y Price Target
$86.60Price Target Upside16.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)5.59
Revenue Forecast (FY)$9.51B
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 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 Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call balanced clear execution and strategic progress—organic/brand strength, e-commerce growth, new-store momentum, strong operating cash flow, self-distribution progress, and an improved full-year EPS outlook—against tangible near-term challenges including a 1.7% comp decline, modest gross margin contraction (20 bps), SG&A deleverage, shrink issues, and an expected ~75 bps EBIT headwind in Q2 from fixed-cost deleverage and higher fuel. Management emphasized tests on targeted price investments, loyalty monetization, and supply-chain improvements to drive sequential improvement through 2026.Positive Updates
Revenue Growth
Total sales of $2.3 billion in Q1, up $93 million or 4% year-over-year, driven by strong new store performance.
Negative Updates
Comparable Store Sales Decline
Comparable (comp) store sales declined 1.7% in Q1, with management guiding Q2 comps in the range of -2% to 0% and full-year comps of -1% to +1% on a 52-week basis.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total sales of $2.3 billion in Q1, up $93 million or 4% year-over-year, driven by strong new store performance.
Read all positive updates
Company Guidance
Sprouts issued 2026 guidance noting that 2026 is a 53‑week year (extra week in Q4) but on a 52‑week basis expects total sales growth of 4.5%–6.5% with comparable store sales between -1% and +1%, plans to open at least 40 new stores, and forecasts full‑year EBIT of $675M–$695M, an effective corporate tax rate of ~25.5%, and capital expenditures (net of landlord reimbursements) of $280M–$310M; they raised full‑year diluted EPS to $5.32–$5.48 assuming at least $300M of share repurchases. For Q2 they expect comps of -2% to 0%, EPS of $1.32–$1.36 and roughly 75 basis points of EBIT margin pressure (driven by fixed‑cost deleverage, annualizing loyalty points and higher fuel), and noted near‑term flexibility from a strong balance sheet after Q1 cash of $252M, $235M of operating cash flow, $98M of Q1 capex (net), $140M returned via 1.9M shares repurchased (leaving $696M available under a $1B authorization) while relying on easing comparisons, loyalty ramp, and completed meat self‑distribution to drive sequential improvement.Sprouts Farmers Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.90B | 8.81B | 7.72B | 6.84B | 6.40B | 6.10B |
| Gross Profit | 3.29B | 3.27B | 2.96B | 2.54B | 2.36B | 2.22B |
| EBITDA | 995.32M | 995.76M | 645.07M | 518.59M | 493.49M | 464.38M |
| Net Income | 507.37M | 523.67M | 380.60M | 258.86M | 261.16M | 244.16M |
Balance Sheet | ||||||
| Total Assets | 4.27B | 4.16B | 3.64B | 3.33B | 3.07B | 2.92B |
| Cash, Cash Equivalents and Short-Term Investments | 252.16M | 257.28M | 265.16M | 201.79M | 293.23M | 245.29M |
| Total Debt | 2.06B | 1.94B | 1.68B | 1.66B | 1.54B | 1.51B |
| Total Liabilities | 2.84B | 2.76B | 2.32B | 2.18B | 2.02B | 1.96B |
| Stockholders Equity | 1.43B | 1.40B | 1.32B | 1.15B | 1.05B | 959.88M |
Cash Flow | ||||||
| Free Cash Flow | 360.63M | 467.73M | 414.84M | 239.76M | 247.32M | 262.42M |
| Operating Cash Flow | 650.57M | 716.00M | 645.21M | 465.07M | 371.33M | 364.80M |
| Investing Cash Flow | -289.94M | -248.27M | -230.38M | -238.34M | -124.01M | -102.38M |
| Financing Cash Flow | -393.56M | -474.05M | -351.50M | -318.05M | -199.13M | -186.86M |
Sprouts Farmers Technical Analysis
Positive
74.15
Price Trends
82.60
Positive
78.91
Positive
83.85
Positive
Market Momentum
0.78
Negative
61.91
Neutral
85.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFM, the sentiment is Positive. The current price of 74.15 is below the 20-day moving average (MA) of 84.14, below the 50-day MA of 82.60, and below the 200-day MA of 83.85, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 85.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFM.
Sprouts Farmers Risk Analysis
Sprouts Farmers disclosed 86 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.46B | 17.10 | 36.06% | ― | 10.25% | 17.03% | |
67 Neutral | $1.98B | 20.08 | 7.49% | 2.06% | 4.14% | -0.27% | |
66 Neutral | $751.13M | 15.60 | 22.26% | 1.99% | 3.09% | 16.13% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | $35.67B | 33.65 | 13.04% | 2.15% | 1.14% | -53.47% | |
51 Neutral | $6.92B | 44.16 | 8.17% | 3.49% | 3.46% | -80.55% | |
49 Neutral | $916.02M | ― | -36.58% | ― | 6.04% | -2370.84% |
* Consumer Defensive Sector Average
SFM
Sprouts Farmers
89.94
-74.25
-45.22%
KR
Kroger Company
58.22
-11.77
-16.82%
WMK
Weis Markets
80.10
5.86
7.89%
NGVC
Natural Grocers
32.60
-6.04
-15.64%
GO
Grocery Outlet Holding
10.39
-2.86
-21.58%
ACI
Albertsons Companies
14.13
-7.85
-35.71%
Sprouts Farmers Corporate Events
Executive/Board ChangesShareholder Meetings
Sprouts Farmers Shareholders Reaffirm Board and Pay Practices
Positive
May 21, 2026
On May 20, 2026, Sprouts Farmers Market stockholders elected two Class I directors, Joel D. Anderson and Terri Funk Graham, to serve until the 2027 annual meeting, reaffirming the current board composition. Investors also approved the 2025 executi...
Business Operations and StrategyStock BuybackFinancial Disclosures
Sprouts Farmers Issues Mixed Q1 Results and Outlook
Neutral
Apr 29, 2026
Sprouts Farmers Market reported that for the 13-week first quarter ended March 29, 2026, net sales rose 4% year over year to $2.3 billion, while comparable store sales declined 1.7% and diluted EPS slipped to $1.71 from $1.81. The grocer opened si...
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.