# Sprouts Farmers Market LLC (SFM.US)

Canonical: https://gigainvestors.com/s/SFM

Analysis as of: 2026-10-16T07:31:51.383Z. Financial observations: FY2012–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $66.63 per share; close as of 2026-10-15.

Estimated value: low $72.63 per share, central $103.55 per share, high $121.56 per share. Buy at or below the central value $103.55 per share. Valuation as of 2026-10-16T07:31:51.383Z; scenarios are not confidence intervals.

Expected annual return: 13.7% at the stated quote. About 13.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.05×

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.06×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.05×

- FY2024: 0.07×

- FY2025: 0.08×

### moat: pass

- ROIC, median of available years: 16.3%

- ROIC, second-lowest year: 11.9%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 36.6%

- Recent gross margin (lower of latest and 3-year median): 37.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.1%

- ROIC including acquisitions, ten-year median: 12.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.4%

- FY2017: 23.4%

- FY2018: 22.6%

- FY2019: 8.9%

- FY2020: 16.5%

- FY2021: 13.6%

- FY2022: 13.9%

- FY2023: 11.9%

- FY2024: 16.1%

- FY2025: 19.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.17×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.0B

- Net income, five-year total: $1.7B

- Return on incremental invested capital: 173.7%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.5 pp

- Working capital / revenue, final three-year average: 2.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.09×

- FY2022: 1.46×

- FY2023: 1.15×

- FY2024: 1.11×

- FY2025: 1.11×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 22.6% vs 16.1%

- Per-share earnings: 0.83 to 3.75 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.5%

- Ordinary dilution, 5-year annual growth: -3.5%

- Market cap gain: $5.0B

- Cumulative retained earnings: $486M

- Diluted shares, 10-year annual growth: -4.5%

- Diluted shares, 5-year annual growth: -3.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 20.8%

- Per-share value change: $2.92

- Per-share value, starting three-year median: $0.83

- Per-share value, ending three-year median: $3.75

- Buybacks concentrated in cheaper years (correlation): 0.03

- Average buyback yield: 6.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $13M

- Cumulative net income, 10 years: $2.5B

- ROIC, first three-year median: 22.6%

- ROIC, last three-year median: 16.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.83

- FY2017: $1.15

- FY2018: $1.22

- FY2019: $1.25

- FY2020: $2.43

- FY2021: $2.10

- FY2022: $2.39

- FY2023: $2.50

- FY2024: $3.75

- FY2025: $5.31

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -4.6%

- Receivables to sales index (DSRI): 2.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.37×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.42×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.0%

- FY2017: -9.6%

- FY2018: -8.1%

- FY2019: -7.5%

- FY2020: -7.4%

- FY2021: -4.1%

- FY2022: -3.6%

- FY2023: -6.2%

- FY2024: -7.3%

- FY2025: -4.6%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 61% since May 2025 · "SFM Q2 Results Show Store Growth Strength but Margin Pressure Builds" (finance.yahoo.com, Aug 2026) · sales +14.1%

Story as of 2026-10-16T09:59:34.207Z; price observation 2026-10-15.

Price needs cash profits to grow 0.9% a year for ten years

- 2025-05-01: Sprouts Farmers Market (NasdaqGS:SFM) Reports Strong Q1 Growth With Positive 2025 Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/sprouts-farmers-market-nasdaqgs-sfm-181053227.html))

- 2025-10-29: Sprouts (NASDAQ:SFM) Misses Q3 Sales Expectations, Stock Drops 18.8% ([finance.yahoo.com](https://finance.yahoo.com/news/sprouts-nasdaq-sfm-misses-q3-205627691.html))

- 2026-02-20: Sprouts signals 4.5%-6.5% sales growth for 2026 while investing in affordability and loyalty ([seekingalpha.com](https://seekingalpha.com/news/4554381-sprouts-signals-4_5-percentminus-6_5-percent-sales-growth-for-2026-while-investing-in?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-04-30: Sprouts Farmers Q1 Earnings Top Estimates on New Stores and E-commerce ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sprouts-farmers-q1-earnings-top-141800613.html))

- 2026-05-12: Sprouts Farmers Market (SFM) Valuation After Q1 2026 Earnings Beat And Updated Growth Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sprouts-farmers-market-sfm-valuation-141304687.html))

- 2026-07-29: Sprouts (NASDAQ:SFM) Posts Q2 CY2026 Sales In Line With Estimates, Stock Soars ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sprouts-nasdaq-sfm-posts-q2-202554681.html))

### Sales · FY2024–2025

sales +14.1%; source https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm; observed 2026-02-19.

- FY2016: $4.0B 

- FY2017: $4.7B 

- FY2018: $5.2B 

- FY2019: $5.6B 

- FY2020: $6.5B 

- FY2021: $6.1B 

- FY2022: $6.4B 

- FY2023: $6.8B 

- FY2024: $7.7B 

- FY2025: $8.8B 

### Gross margin · FY2025

gross margin 37.1%; source https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm; observed 2026-02-19.

- FY2016: 33.7% 

- FY2017: 33.6% 

- FY2018: 33.6% 

- FY2019: 33.8% 

- FY2020: 36.9% 

- FY2021: 36.4% 

- FY2022: 36.9% 

- FY2023: 37.1% 

- FY2024: 38.4% 

- FY2025: 37.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in grocery stores; annual sales are USD 8.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm (filed 2026-02-19); FY2025: revenue 8806159000; grossProfit 3266420000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SFM.US: 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.

### Why customers stay

Margins ranged from 37.1% to 38.4% during 2023–25; it earns 16.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 37.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 38.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 37.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2016,0.20440908459877538],[2017,0.23366747045843214],[2018,0.2257266290196315],[2019,0.08895388041582764],[2020,0.16509704651755425],[2021,0.13645672335705236],[2022,0.1391817823695858],[2023,0.11850066969082998],[2024,0.1609649636077868],[2025,0.1940863054258002]]; median 0.16303100506267054. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 37% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm (filed 2026-02-19); Gross margin observations: [[2021,0.3639114217043022],[2022,0.3686573687393459],[2023,0.3714931032102336]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 471.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 68205331.22092597; upkeep 113303668.77907403; owner earnings 91725331.22092597. Growth capex / owner earnings = 0.7435822832478994.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 91025108.02653782; upkeep 107598891.97346218; owner earnings 147828108.02653784. Growth capex / owner earnings = 0.615749665213852.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 66334000; upkeep 110749000; owner earnings 158536000. Growth capex / owner earnings = 0.41841600645910076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 60428000; upkeep 122804000; owner earnings 149629000. Growth capex / owner earnings = 0.4038521944275508.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 121968000; owner earnings 291989000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 0; upkeep 102378000; cash acquisitions 0; owner earnings 267320000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 124010000; cash acquisitions 0; owner earnings 381536000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 0; upkeep 225310000; cash acquisitions 13032000; owner earnings 298565000. Growth capex plus acquisitions / owner earnings = 0.043648786696364274.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 230375000; cash acquisitions 0; owner earnings 424313000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm (filed 2026-02-19); FY2025: growth capex 0; upkeep 248267000; cash acquisitions 0; owner earnings 579723999. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,4878000],[2020,1343000],[2021,2170000],[2022,0],[2023,11454000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm (filed 2026-02-19); FY2025: cash repurchases 471926000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SFM.US SharesStats.PercentInsiders = 0.565 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm (filed 2026-02-19); eral economic conditions and trends, including levels of disposable income and consumer confidence;

•our competition, including competitive store openings in the vicinity of our stores and competitor pricing and merchandising strategies;

•consumer preferences and buying trends;

•our ability to identify market trends, and to source and provide product offerings that promote customer traffic and growth in average ticket;

•the number of customer transactions and average ticket;

•the prices of our products, including the effects of factors beyond our control, such as inflation, deflation and tariffs;

•opening new stores in the vicinity of our existing stores; and

•advertising, in-store merchandising and other marketing activities.

Cost of sales and gross profit

Cost of sales includes the cost of inventory sold during the period, including direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, and depreciation and amortization expense for distribution centers and supply chain-related assets. Merchandise incentives received from vendors, which are reflected in the carrying value of inventory when earned or as progress is made toward earning the rebate or allowance, and are reflected as a component of cost of sales as the inventory is sold. Inflation and deflation in the prices of food and other products we sell may periodically affect our gross profit and gross margin. Tariffs may result in cost increases on products such as produce that we import from impacted countries, as well as products containing ingredients imported from these countries. The short-term impact of tariffs, inflation, and deflation is largely dependent on whether or not we pass the effects through to our customers, which will largely depend upon competitive market conditions.

Our cost of sales and gross profit are correlated to sales volumes. As sales increase, gross margin is affected by the relative mix of products sold, pricing and promotional strategies, inventory shrinkage and leverage of fixed costs of sales.

37

Table of Contents

Selling, general and administrative expenses

Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, store occupancy costs (including rent, property taxes, utilities, common area maintenance and insurance), advertising costs, buying costs, pre-opening and other administrative costs.

Depreciation and Amortization

Depreciation and amortization (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment.

Store closure and other costs, net

Store closure and other costs, net primarily reflects impairment charges of long-lived assets and costs incurred related to store closures, including severance and any exit c

### What the price says

The price assumes cash profits grow 0.9% yearly over ten years; actual growth was 21.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate 0.00039194192070735046. Price 66.63; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.8275178506129833 → FY2025 5.873358718998217. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $22.15 per share

- 2016-11: $20.01 per share

- 2016-12: $18.92 per share

- 2017-01: $18.67 per share

- 2017-02: $18.46 per share

- 2017-03: $23.12 per share

- 2017-04: $22.31 per share

- 2017-05: $23.96 per share

- 2017-06: $22.67 per share

- 2017-07: $24.07 per share

- 2017-08: $19.94 per share

- 2017-09: $18.77 per share

- 2017-10: $18.49 per share

- 2017-11: $23.38 per share

- 2017-12: $24.35 per share

- 2018-01: $27.93 per share

- 2018-02: $25.76 per share

- 2018-03: $23.47 per share

- 2018-04: $25.03 per share

- 2018-05: $21.70 per share

- 2018-06: $22.07 per share

- 2018-07: $21.49 per share

- 2018-08: $26.47 per share

- 2018-09: $27.41 per share

- 2018-10: $26.89 per share

- 2018-11: $23.02 per share

- 2018-12: $23.51 per share

- 2019-01: $23.98 per share

- 2019-02: $23.32 per share

- 2019-03: $21.54 per share

- 2019-04: $21.42 per share

- 2019-05: $20.05 per share

- 2019-06: $18.89 per share

- 2019-07: $16.93 per share

- 2019-08: $17.95 per share

- 2019-09: $19.34 per share

- 2019-10: $19.41 per share

- 2019-11: $19.80 per share

- 2019-12: $19.35 per share

- 2020-01: $15.63 per share

- 2020-02: $15.98 per share

- 2020-03: $18.59 per share

- 2020-04: $20.78 per share

- 2020-05: $25.13 per share

- 2020-06: $25.59 per share

- 2020-07: $26.38 per share

- 2020-08: $23.35 per share

- 2020-09: $20.93 per share

- 2020-10: $19.05 per share

- 2020-11: $21.17 per share

- 2020-12: $20.10 per share

- 2021-01: $22.65 per share

- 2021-02: $21.11 per share

- 2021-03: $26.62 per share

- 2021-04: $25.61 per share

- 2021-05: $26.60 per share

- 2021-06: $24.85 per share

- 2021-07: $24.58 per share

- 2021-08: $24.90 per share

- 2021-09: $23.17 per share

- 2021-10: $22.14 per share

- 2021-11: $26.46 per share

- 2021-12: $29.68 per share

- 2022-01: $27.14 per share

- 2022-02: $28.48 per share

- 2022-03: $31.98 per share

- 2022-04: $29.80 per share

- 2022-05: $27.09 per share

- 2022-06: $25.32 per share

- 2022-07: $27.64 per share

- 2022-08: $28.90 per share

- 2022-09: $27.75 per share

- 2022-10: $29.50 per share

- 2022-11: $34.33 per share

- 2022-12: $32.37 per share

- 2023-01: $31.95 per share

- 2023-02: $30.29 per share

- 2023-03: $35.03 per share

- 2023-04: $34.66 per share

- 2023-05: $34.56 per share

- 2023-06: $36.73 per share

- 2023-07: $39.25 per share

- 2023-08: $40.79 per share

- 2023-09: $42.80 per share

- 2023-10: $42.02 per share

- 2023-11: $43.08 per share

- 2023-12: $48.11 per share

- 2024-01: $50.37 per share

- 2024-02: $62.44 per share

- 2024-03: $64.48 per share

- 2024-04: $66.03 per share

- 2024-05: $78.98 per share

- 2024-06: $83.66 per share

- 2024-07: $99.89 per share

- 2024-08: $104.05 per share

- 2024-09: $110.41 per share

- 2024-10: $128.43 per share

- 2024-11: $154.48 per share

- 2024-12: $127.07 per share

- 2025-01: $158.34 per share

- 2025-02: $148.40 per share

- 2025-03: $152.64 per share

- 2025-04: $171.00 per share

- 2025-05: $172.86 per share

- 2025-06: $164.64 per share

- 2025-07: $151.54 per share

- 2025-08: $140.54 per share

- 2025-09: $108.80 per share

- 2025-10: $78.96 per share

- 2025-11: $83.81 per share

- 2025-12: $79.67 per share

- 2026-01: $70.91 per share

- 2026-02: $73.87 per share

- 2026-03: $77.13 per share

- 2026-04: $81.85 per share

- 2026-05: $82.62 per share

- 2026-06: $84.58 per share

- 2026-07: $87.16 per share

- 2026-08: $82.04 per share

- 2026-09: $66.35 per share

- 2026-10: $66.63 per share

## Annual estimated value (USD per share)

- FY2016: low $6.70 per share, central $7.62 per share, high $8.85 per share

- FY2017: low $11.72 per share, central $13.33 per share, high $15.49 per share

- FY2018: low $13.90 per share, central $15.82 per share, high $18.37 per share

- FY2019: low $15.66 per share, central $17.82 per share, high $20.69 per share

- FY2020: low $18.55 per share, central $21.06 per share, high $24.40 per share

- FY2021: low $19.27 per share, central $21.78 per share, high $25.12 per share

- FY2022: low $36.47 per share, central $51.46 per share, high $60.18 per share

- FY2023: low $40.03 per share, central $56.91 per share, high $66.75 per share

- FY2024: low $47.82 per share, central $67.84 per share, high $79.50 per share

- FY2025: low $67.49 per share, central $96.06 per share, high $112.70 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1575515/000157551526000008/sfm-20251228.htm); period 2025-12-28, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Andrew Adams](https://gigainvestors.com/MPF): 451,826 SFM shares; USD 38,215,000 reported position value; 0.35% of portfolio; add; quarter 2026 Q2.

# SFM — Sprouts Farmers Market Inc.

Held by 1 investor · USD 38,215,000 total · 2026 Q2 · reported price USD 84.58 (split-adjusted).
Page: https://gigainvestors.com/s/SFM

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Andrew Adams (https://gigainvestors.com/MPF) | USD 38,215,000 | 0.4% | add +54.64% |

## Total held by quarter

- 2026 Q1: USD 22,535,612 · 1 holder · USD 77.13
- 2026 Q2: USD 38,215,000 · 1 holder · USD 84.58