Sprouts Farmers Market (SFM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Sprouts Farmers Market

NasdaqGS•Consumer Defensive•Grocery Stores

$66.21-0.06(<0.01%)Market open

Market Cap

$4.63B

P/E

9.3x

P/S

0.5x

P/B

3.0x

Sprouts Farmers Market, Inc., together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products in the United States. The company operates healthy grocery stores; and lifestyle-friendly ingredients, such as organic, plant-based, keto, paleo, non-GMO, and gluten-free. The company also offers perishable product categories, including produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. It sells its products under the Sprouts brand. The company was founded in 1943 and is headquartered in Phoenix, Arizona.

How this company scores

GoodMetricSide Score: 60/100

Strongest: Balance Sheet & Red Flags (19/25); weakest: Profitability (12/25).

Profitability12/25

Growth15/25

Balance Sheet & Red Flags19/25

Cash & Earnings Quality14/25

Strengths

High ROELow leverageConsistent free cash flowConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 9.3x5y range 9.3x – 33.7x

Currently below its 20-quarter median.

P/S · 0.5x5y range 0.4x – 1.9x

Currently below its 20-quarter median.

P/B · 3.0x5y range 2.8x – 11.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 5.2% — watch for continued compression, which may signal competitive or cost pressure.

Price & Volume

Market Cap $4.63B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $9.11B
Q. Revenue: $2.30B
TTM EBITDA: $844.73M
TTM Op. Income: $665.34M
Q. Op. Income: $152.78M
TTM Net Income: $496.17M
Q. Net Income: $113.42M
EPS: $1.22
Shares Out.: $93.13M

$9.11B in TTM revenue grew 5.3% YoY, reaching $2.30B last quarter. TTM EBITDA of $844.73M and TTM operating income of $665.34M show growth is flowing through to the bottom line. TTM net income of $496.17M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 38.2%
EBITDA Margin: 8.7%
Op. Margin: 6.6%
Net Margin: 4.9%

Op. margin of 6.6% is down 0.5% YoY — costs are rising relative to revenue. Net margin at 4.9% and gross margin of 38.2% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 9.3x
P/S Ratio: 0.5x
P/B Ratio: 3.0x

At 9.3x P/E, the stock trades below typical market levels. P/S of 0.5x and P/B of 3.0x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 55% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.46B
Cash: $228.66M
Long-Term Debt: $129.58M
Book Value: $1.53B
D/E Ratio: 0.1
Debt/EBITDA: 0.6

With $4.46B in assets and $129.58M in long-term debt, D/E is 0.1and book value is $1.53B — a conservative capital structure with a cushion to weather downturns. Across the last 4 quarters, debt/equity has risen for 3 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $186.13M
TTM Free Cash Flow: $337.26M
FCF Margin: 3.7%
FCF / Net Income: 0.7

TTM FCF of $337.26M on $186.13M in operating cash flow. The FCF / Net Income ratio of 0.7x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has fallen for 3 consecutive quarters — a weakening trend.