Sprouts Farmers Market LLC logo

Sprouts Farmers Market LLC(SFM)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
3-STAR RATING
PASS
LAST CLOSE
$66.01
10/08/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for SFM

10/08/2026: SFM (3-star) is currently NOT-A-BUY. Pass it for now.

Sprouts Farmers Market is a specialty grocery retailer focused on providing natural and organic food products in an approachable, farmers-market-style setting. The company has a leading position in its niche, supported by efficient small-store operations and a strong emphasis on high-margin vitamins and supplements. Its primary growth opportunity lies in its disciplined, long-term strategy of expanding into new geographic regions. However, the company faces significant competitive risks from large-scale national retailers like Walmart and Amazon, alongside potential margin pressure from rising labor and operating costs. The stock may best suit growth-oriented investors looking for exposure to healthy eating trends, provided they monitor the company's progress on new store openings and competitive pricing.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fit while signal remains positiveThe company’s disciplined store expansion strategy offers consistent growth potential in the specialty grocery niche.
Momentum investorMixed fitMomentum depends on sustained outperformance in same-store sales and successful new market entry.
Value investorStrong fitThe stock has historically traded at reasonable valuations relative to its growth prospects in the grocery sector.
Dividend investorWeak fitSprouts does not currently offer a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorMedium fitWhile the business model is relatively defensive, retail grocery competition remains a constant source of volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumRetail stocks often react sharply to quarterly earnings reports and changes in consumer spending trends.
Valuation riskMediumChanges in market sentiment toward growth stocks can cause valuation multiples to contract.
Competition risk (grocery retail)HighAggressive pricing from competitors like Walmart and Amazon can compress margins.
Business qualityMediumThe company has strong unit economics, though it lacks the scale of dominant industry leaders.
Dividend incomeLow / noneThe absence of a dividend removes this as a source of total return.
Execution riskMediumSuccessfully managing a multi-state supply chain while scaling new stores is operationally complex.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit 139.16%
Avg. Invested days 73
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 5.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/08/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
SFM receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
SFM has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+37.6%) and solid cash generation (FCF margin 5.3%) are partially offset by soft profitability (net margin 5.9%), very low insider ownership of 0.56%.

Financial Health Rating

★★★★★
SFM's financial health is supported by solid cash strength, including free-cash-flow generation (5.3% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is SFM's strongest growth driver at +37.6% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+14.1%, solid) and free-cash-flow growth (+12.8%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 114.3% and approximately 99.2% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.56%, which materially reduces the ownership score.

Top 5 Institutional Investors

FMR Inc 15.13%
BlackRock Inc 9.74%
Vanguard Capital Management, LLC 4.56%
Vanguard Portfolio Management, LLC 4.55%
Morgan Stanley - Brokerage Accounts 4.19%

Unit Economics (Per $1K Revenue)

★★★★★
SFM generates approximately $371 of gross profit, $78 of operating income, and $53 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Soft margins and moderate cash conversion support a 3-star rating, while capital efficiency is solid.

Economic Dimensions

★★★★★
Effective Tax Rate: 23.97%

Quantitative Style Profile

★★★★★
SFM has a high-quality, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLow VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.09B USD
Price to earnings Ratio 12.48
1Y Target Price 93.57
Price to earnings Ratio 12.48
1Y Target Price 93.57
Volume (30-day avg) 2.1M shares
Beta 0.67
52 Weeks Range 61.88 - 114.34
Updated Date 10/08/2026
52 Weeks Range 61.88 - 114.34
Updated Date 10/08/2026
Dividends yield (FY) -
Basic EPS (TTM) 5.23

How Company Makes Money

Business areaWhat it includesRetail investor read
Retail Grocery OperationsSale of fresh produce, vitamins, supplements, and organic grocery items.Sprouts makes money primarily by selling fresh, healthy groceries directly to consumers in its stores.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 12.48
Forward PE 11.12
Enterprise Value 8.04B
Price to Sales(TTM) 0.68
Enterprise Value 8.04B
Price to Sales(TTM) 0.68
Enterprise Value to Revenue 0.89
Enterprise Value to EBITDA 8.03
Shares Outstanding 93.25M
Shares Floating 92.51M
Shares Outstanding 93.25M
Shares Floating 92.51M
Percent Insiders 0.56
Percent Institutions 114.28

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Sprouts Farmers Market LLC

Exchange NASDAQ
Headquarters Phoenix, AZ, United States
IPO Launch date 2013-08-01
CEO & Director Mr. Jack L. Sinclair
Sector Consumer Defensive
Industry Grocery Stores
Full time employees 36000
Full time employees 36000

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.

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