Sprouts Farmers Market Inc. Common Stock (SFM)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach grocery retail with caution. It is a low-margin, competitive business where scale and location matter. Sprouts has built a niche in fresh, natural, and organic foods, with 36,000 employees and a brand for health-conscious shoppers. That is a useful edge, but not an impenetrable moat. The filed numbers show real growth. Revenue rose from $6.8 billion in fiscal 2023, period ended 2023-12-31, to $7.7 billion in fiscal 2024, period ended 2024-12-29, and $8.8 billion in fiscal 2025, period ended 2025-12-28. Net income rose from $258.9 million to $380.6 million to $523.7 million, while diluted EPS climbed from $2.50 to $3.75 to $5.31. However, in fiscal Q2 2026, the quarter ended 2026-06-28, revenue was $2.3 billion and net income was $129.2 million, versus net income of $133.7 million in fiscal Q2 2025, the quarter ended 2025-06-29. Profit is decelerating. At the 2026-10-13 close of $63.60, FairStock calculations show a P/E of 12.16, EV/EBITDA of 7.80, FCF yield of 6.0%, and ROE of 35.2%. The balance sheet is not fortress-like: D/E is 1.40, Altman Z is 2.13, and Piotroski is 5/9. The Graham Number is $43.40, leaving the price 46.54% above that conservative value. The Lynch category is STALWART, based on 12.7% five-year profit growth and 6.4% revenue growth. At 12 times earnings and near the low end of its 52-week range, the market expects little. But a value investor must demand a margin of safety. Here the cheap earnings multiple fights with weak asset protection and decelerating profit.

In plain English: Sprouts Farmers Market runs grocery stores focused on fresh, natural, and organic food. The business has grown sales and profits over recent years and generates solid cash, but profit slipped in its latest reported quarter. At the recent price, the shares look cheap compared with earnings but expensive compared with the company's accounting net assets and a conservative asset-based estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer