Sprouts Farmers Market, Inc.
- Open
- 74.65
- Day high
- 77.52
- Day low
- 74.28
- Prev close
- 73.67
- Volume
- 2.2M
- Mkt cap
- $7.1B
- P/E (TTM)
- 14.4
- EPS (TTM)
- $5.26
- P/B
- 5.0
- P/S
- 0.8
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$3.9M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
Sprouts Farmers Market, Inc. (SFM) is a Consumer Defensive company listed on NASDAQ. The stock is down 54% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4).
Sprouts Farmers Market, Inc. (SFM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SFM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $1.67 | $1.71 | +2.4% | $2.3B | +0.3% |
| Feb 19, 2026 | $0.89 | $0.92 | +3.4% | $2.1B | -6.4% |
| Oct 29, 2025 | $1.17 | $1.22 | +4.3% | $2.2B | +2.2% |
| Jul 30, 2025 | $1.23 | $1.35 | +9.8% | $2.2B | +1.8% |
| Apr 30, 2025 | $1.55 | $1.81 | +16.8% | $2.2B | +1.4% |
| Feb 20, 2025 | $0.72 | $0.79 | +9.7% | $2.0B | +1.7% |
| May 1, 2024 | $1.00 | $1.12 | +12.0% | $1.9B | +2.1% |
| Feb 22, 2024 | $0.45 | $0.49 | +8.9% | $1.7B | +0.4% |
| Oct 31, 2023 | $0.62 | $0.65 | +4.8% | $1.7B | +1.4% |
| Aug 1, 2023 | $0.63 | $0.71 | +12.7% | $1.7B | +0.7% |
| May 1, 2023 | $0.85 | $0.98 | +15.3% | $1.7B | +0.9% |
| Mar 2, 2023 | $0.37 | $0.42 | +13.5% | $1.6B | +0.9% |
SFM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 8, 2026 | Sinclair Jackdirector, officer: Chief Executive Officer | Sell | 10,788 | $87.41 |
| Jul 8, 2026 | Sinclair Jackdirector, officer: Chief Executive Officer | Option | 10,788 | $16.47 |
| Jun 12, 2026 | Konat Nicholasofficer: President & COO | Sell | 12,538 | $87.90 |
| Jun 9, 2026 | Sinclair Jackdirector, officer: Chief Executive Officer | Sell | 10,788 | $86.92 |
| Jun 9, 2026 | Sinclair Jackdirector, officer: Chief Executive Officer | Option | 10,790 | $16.47 |
| Jun 9, 2026 | Sinclair Jackdirector, officer: Chief Executive Officer | Sell | 10,790 | $82.04 |
| Jun 9, 2026 | Sinclair Jackdirector, officer: Chief Executive Officer | Option | 10,788 | $16.47 |
| Jun 8, 2026 | JHAWAR ANDREWdirector | Grant | 2,894 | — |
| May 1, 2026 | Lombardi Brandon F.officer: Chief Legal Officer | Sell | 406 | $82.04 |
| Mar 23, 2026 | McGlinchey Davidofficer: Chief Development Officer | Sell | 297 | $83.97 |
| Mar 23, 2026 | Konat Nicholasofficer: President & COO | Sell | 530 | $83.97 |
| Mar 23, 2026 | Lombardi Brandon F.officer: Chief Legal Officer | Sell | 297 | $83.97 |
| Mar 23, 2026 | Valentine Curtisofficer: Chief Financial Officer | Sell | 253 | $83.97 |
| Mar 23, 2026 | Zalatoris Timmiofficer: Chief Human Resources Officer | Sell | 426 | $78.52 |
| Mar 23, 2026 | Sinclair Jackdirector, officer: Chief Executive Officer | Sell | 3,201 | $83.97 |
Source: SFM SEC Form 4 filings, latest Jul 8, 2026. For informational purposes only — not investment advice.
See the full SFM insider & 13F page →Sprouts Farmers Market, Inc. company profile
Overview
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty grocery retailer founded in 2002 and headquartered in Phoenix, Arizona. The company went public in August 2013 and has grown from its origins as a health-focused grocery concept to become one of the leading natural and organic food retailers in the United States. As of early 2025, Sprouts operates 443 stores across 24 states, positioning itself as a differentiated player in the competitive grocery landscape by focusing specifically on fresh, natural, and organic products for health-conscious consumers.
Business
Sprouts Farmers Market operates in the specialty grocery retail industry, which represents a subset of the broader $1.6 trillion food-at-home market in the United States. The company specifically targets what it calls the health enthusiast segment, focusing on customers who prioritize natural, organic, and attribute-driven food products. The company's core offering centers around fresh, natural, and organic food products across multiple categories. Their perishable departments include fresh produce (which serves as their signature category), meat, seafood, deli, bakery, floral, dairy, and dairy alternatives. The produce section emphasizes organic options and locally-sourced items when possible, reflecting the company's "farmers market" positioning. Non-perishable categories encompass grocery items, vitamins and supplements, bulk foods, frozen products, beer and wine, and natural health and body care products. A significant component of Sprouts' strategy involves their private label Sprouts Brand products, which account for approximately 24% of total sales as of 2025. These products are specifically developed to meet the company's standards for natural ingredients and health-focused attributes. The company also operates Innovation Centers within stores, which serve as testing grounds for new products and emerging brands in the natural foods space. E-commerce operations represent a growing segment, accounting for 15% of total sales in Q1 2025, with 28% growth year-over-year. This includes partnerships with third-party delivery services like DoorDash, Uber Eats, and Instacart, allowing customers to access Sprouts' products through multiple digital channels while maintaining the company's focus on fresh and specialty items.
Revenue model
Sprouts generates revenue primarily through direct product sales to consumers across both physical stores and e-commerce channels. The company operates on a traditional retail markup model, purchasing products from suppliers and selling them at higher prices to cover operating costs and generate profit. With annual revenue of approximately $7.7 billion in 2024, the business model relies on attracting customers willing to pay premium prices for natural, organic, and specialty food products. The company's paying customers are primarily health-conscious consumers who prioritize product attributes such as organic certification, non-GMO status, gluten-free options, and minimal processing. These customers typically have higher disposable incomes and are willing to pay premium prices for products that align with their health and wellness values. Sprouts has identified its addressable market as approximately $290 billion of the total food-at-home market, representing consumers who actively seek out attribute-driven products. Several factors influence Sprouts' profit margins positively. Private label expansion provides higher margins than national brands, with Sprouts Brand products representing 24% of sales. Operational efficiency improvements including inventory management, shrink reduction, and promotional optimization have contributed to gross margin expansion of 300 basis points since 2019. The company's planned self-distribution initiative for meat and seafood, beginning in 2025, is expected to improve margins by reducing third-party distribution costs and enhancing product freshness. Margin pressures come from several sources. Competitive pricing pressure from conventional grocers expanding their organic offerings and from other specialty retailers can compress margins. Commodity price inflation affects input costs, particularly for fresh produce and meat products. Labor cost inflation impacts store operations, while supply chain investments in new distribution centers and technology require significant upfront capital that temporarily pressures margins before generating long-term benefits.
Competitive moat
Sprouts maintains a moderate competitive moat based primarily on brand positioning and operational specialization rather than structural advantages. The company's strongest defensive position comes from its curated product assortment and expertise in natural and organic foods, which requires significant supplier relationships and category management knowledge that takes time for competitors to replicate. The company's store format and customer experience create some differentiation, with smaller footprint stores (approximately 23,000 square feet) designed to feel like farmers markets rather than traditional supermarkets. This positioning appeals to health-conscious consumers seeking a more specialized shopping experience. Sprouts' Innovation Centers and focus on emerging brands in the natural foods space provide early access to trending products, though this advantage is temporary as successful products eventually reach broader distribution. However, Sprouts faces significant competitive threats that limit the strength of its moat. Conventional grocery chains like Kroger, Safeway, and regional players have substantially expanded their organic and natural food offerings, often at lower prices due to greater scale. Whole Foods Market, backed by Amazon's resources, competes directly in the premium natural foods segment with superior financial resources and integrated e-commerce capabilities. Walmart and Target have developed extensive organic private label programs at significantly lower price points. The rise of direct-to-consumer brands and online specialty food retailers also poses a threat, as health-conscious consumers increasingly discover new products through digital channels rather than physical stores. Additionally, Sprouts' moat is geographically limited, as the company operates primarily in western and southern U.S. markets, leaving room for competitors to establish strong positions in other regions before Sprouts can expand there.
Risks & safety
Sprouts demonstrates a moderate margin of safety with solid financial fundamentals but some leverage concerns and valuation considerations. **Cash and Liquidity Position:** 1. Cash and short-term investments of $286 million as of Q1 2025 2. Strong free cash flow generation of $240 million in Q1 2025, up from $415 million for full year 2024 3. Operating cash flow of $299 million in Q1 2025 demonstrates consistent cash generation 4. Current ratio of 0.95 indicates tight but manageable short-term liquidity **Debt and Solvency:** 1. Debt-to-equity ratio of 1.33, indicating moderate leverage 2. Total liabilities of $2.45 billion against total assets of $3.74 billion 3. No immediate solvency concerns given strong cash flow generation 4. Interest coverage appears adequate based on EBITDA of $299 million quarterly **Valuation Metrics:** 1. P/E ratio of 20.9 appears reasonable for a growing specialty retailer 2. EV/EBITDA of 13.8 suggests moderate valuation relative to cash flow generation 3. Price-to-book ratio of 11.7 indicates premium valuation relative to tangible assets 4. Graham number of $23.18 suggests potential overvaluation at current price of $171 **Other Considerations:** 1. Strong return on equity of 14% indicates efficient capital utilization 2. Consistent profitable growth with expanding margins provides earnings stability 3. Exposure to consumer discretionary spending and economic cycles remains a risk factor
Recent development
Over the past few years, Sprouts has executed several key strategic initiatives to strengthen its competitive position and drive growth. The company has significantly expanded its store footprint, growing from 374 stores in early 2022 to 443 stores by Q1 2025, with plans to open at least 35 additional locations annually. This expansion focuses on densifying existing markets rather than entering entirely new geographies, allowing for operational efficiencies and marketing leverage. Private label development has been a major focus, with Sprouts Brand products growing to represent 24% of total sales. The company introduced over 7,100 new items in 2024 alone, including more than 300 new Sprouts Brand products. Notable launches include the "Real Root by Sprouts" body care line, demonstrating expansion beyond traditional food categories into health and wellness products. The company has made substantial supply chain investments, including establishing new distribution centers and expanding existing facilities. Most significantly, Sprouts is implementing self-distribution for meat and seafood beginning in Q3 2025, following their existing self-distribution model for produce. This initiative is expected to improve product freshness, inventory control, and long-term margins. Digital commerce expansion has accelerated, with e-commerce sales growing from 11.4% of total sales in 2022 to 15% in Q1 2025, representing consistent 25-35% annual growth rates. The company has strengthened partnerships with DoorDash, Uber Eats, and Instacart while maintaining consistent product assortment across all channels. A customer loyalty program is being developed and tested, with beta programs in select markets expanding to a broader pilot across multiple stores in 2025, with full national rollout planned for late 2025. This program aims to increase customer engagement, frequency, and share of wallet while providing valuable customer data for personalization efforts.
SFM company profile · for informational purposes only — not investment advice.
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