Sprouts Farmers Market, Inc.SFM
NasdaqGS•Consumer Defensive•Grocery Stores
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 offers 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.
Sprouts Farmers Market, Inc. (SFM) reported trailing twelve months revenue of $8.90B as of March 2026, a 10.2% increase year-over-year. Quarterly revenue reached $2.33B, reflecting continued top-line momentum.
Sprouts Farmers Market, Inc. generated $507.37M in TTM net income, with quarterly EBITDA of $259.58M. The operating margin contracted from 10.1% to 9.2%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (9.2%) and net margin (7.0%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 8.0% a year ago, reflecting increased costs or interest expense.
SFM trades at a P/E of 16.0x (in line with broad market averages) and a P/S of 0.9x. The price-to-book ratio of 5.6x indicates a significant premium over book value.
The company generated $134.14M in free cash flow over the trailing twelve months, a 44.0% decrease year-over-year, indicating cash generation ability. The balance sheet shows $4.27B in total assets with $97.04M in long-term debt against $1.43B in stockholders equity for a debt-to-equity ratio of 0.1, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~7.3% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 32.4% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~23.8% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~7.6% — no sign of cost or pricing stress.
FCF covers net income by 0.9x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 5.6% — net buybacks are reducing shares outstanding and boosting per-share value.