Sprouts Farmers Market, Inc. (SFM) AI Stock Analysis

Sprouts Farmers Market, Inc. is a retailer specializing in fresh, natural, and organic food products across the United States. Established in 2002 and based in Phoenix, Arizona, the company operates grocery stores focused on healthy and sustainable living. Its product lineup features perishable goods including fresh produce, meat, seafood, deli selections, bakery items, floral arrangements, and dairy alternatives. Sprouts also offers non-perishable categories such as grocery staples, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care products through its nationwide retail store network.

Sprouts Farmers Market achieved a 5-year revenue CAGR of 6.4% from FY2020 to FY2025. Annual revenue expanded from $6.10B in FY2021 to $6.40B in FY2022, $6.84B in FY2023, $7.72B in FY2024, and $8.81B in FY2025, which reflected 14.1% annual growth. Gross margin stood at 37.1% in FY2025, while operating margin improved to 7.8% from 5.5% in FY2021. Net income increased from $244.2M in FY2021 to $523.7M in FY2025, bringing EPS to $5.30. In the trailing twelve months, revenue reached $9.00B with an operating margin of 7.5%. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.7% year-over-year, and quarterly earnings grew 1.5%.

As of June 30, 2026, Sprouts held $223.9M in cash and short-term investments against total debt of $2.11B, resulting in net debt of $1.88B. Total assets were $4.33B compared to shareholders' equity of $1.50B, resulting in a debt-to-equity ratio of 1.40 and a current ratio of 0.99. In FY2025, operating cash flow reached $716.0M and free cash flow was $467.7M. Cash deployment in FY2025 included capital expenditures of $248.3M and share buybacks of $471.9M, contributing to a 5-year share count change of -16.3%.

At a last close of $65.20, Sprouts Farmers Market has a market capitalization of $6.08B and an enterprise value of $8.04B. The stock trades at a trailing P/E of 12.5x and a forward P/E of 11.1x, below the median of its US-listed Consumer Defensive peers of 18.6x and 14.3x, respectively. Its EV/EBITDA of 8.0x is also lower than the peer median of 11.7x, while its price-to-sales of 0.7x matches the peer median of 0.7x. Over the past year, SFM returned -41.6% compared to 16.8% for the S&P 500 (SPY), while its 5-year return of 194.9% outperformed SPY's 83.0%.

Sprouts Farmers Market has 16 analyst ratings: 6 Strong Buy, 3 Buy, 6 Hold, 0 Sell, and 1 Strong Sell. The mean price target is $93.57, which is 43.5% above the last close of $65.20. For the fiscal year ending December 31, 2026, analysts estimate EPS of $5.53 on revenue of $9.48B. For the following fiscal year, 11 analysts project EPS of $5.91 on revenue of $10.21B. The company beat EPS estimates in each of its last 4 quarters, with its next earnings release scheduled for October 28, 2026.

This page is an AI-written research summary of Sprouts Farmers Market, Inc. (SFM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SFM income statement, SFM balance sheet, SFM key metrics, SFM analyst forecast, SFM chart. See the SFM stock overview for the latest quote and news.