SFM
Sprouts Farmers Market, Inc.

Sprouts Farmers Market, Inc.SFM

Consumer Defensive · Grocery Stores
54.40USD
+3.64%
Nov 05, 2026
SFM overview ready
Retailer of fresh and organic grocery products to health-conscious U.S. Consumers
Sprouts is a direct specialty-grocery retailer whose store format, perishables mix, natural and organic assortment, supplements, and new-store pipeline are directly exposed to health-oriented food demand.
Theme not measured
No economic group is assigned yet.
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to how much growth and cash flow it delivers per turn of revenue multiple.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from larger grocery chains and specialty retailers.
Market Nov 4Price action Nov 5Research Oct 10

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction1.4BusinessPerformance5.0BusinessQuality8.8Valuation8.4ThemeMomentum—Stable — Revenue is growing at a steady pace (+4.7% year over year). Diluted EPS is roughly flat year over year at $1.21. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
No economic group yet — pending research
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$4.6B
Avg Volume (60D)
3.1M
60 sessions
Revenue Growth YoY
+5.2%
Trailing twelve months
Gross Margin
+38.8%
Operating Margin
+7.3%
Trailing twelve months
Free Cash Flow Yield
+8.0%
P/E
9.5x
EV / EBITDA
7.8x
EV / Sales
0.7x
Market metrics as of Nov 4, 2026

Business Performance

Stable

Revenue is growing at a steady pace (+4.7% year over year). Diluted EPS is roughly flat year over year at $1.21.

Latest reported: Q3 FY2026, ended Sep 27
Revenue growthGrowing
+4.7%
$2.30B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. n/a
  2. +4.1%
  3. +4.7%
  4. +4.7%
Earnings growthFlat
-0.8%
Diluted EPS $1.21 vs $1.22 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. -5.5%
  3. +1.5%
  4. -0.8%
Operating marginStable
6.6%
-0.5 pp YoY · gross margin 38.2% (-0.5 pp)

Business Quality

8.8 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

All three valuation perspectives agree this company is cheap.
This company has a Cheap valuation stance because current market expectations look undemanding relative to how much growth and cash flow it delivers per turn of revenue multiple.

Company Research

Thesis
Sprouts is a direct specialty-grocery retailer whose store format, perishables mix, natural and organic assortment, supplements, and new-store pipeline are directly exposed to health-oriented food demand.
Opportunity
Moderate opportunity
Consumer demand for fresh, natural, organic, dietary-specialty, and wellness-oriented food is supporting assortment investment and physical-store expansion across natural-food retailers and broader grocery channels.
Key risk
Competition from larger grocery chains and specialty retailers.

Economic classification

Loading the economic classification…

Business & Markets

Consumer Defensive · Grocery Stores
What they do

Sprouts Farmers Market operates retail grocery stores in the U.S. Specializing in fresh, natural, and organic food products, focusing on health-conscious and lifestyle-friendly offerings.

How it earns

The company generates revenue primarily through transactional sales of grocery and related products in its stores.

Products & services
Fresh produce
Meat and meat alternatives
Seafood
Deli
Bakery
Floral
Dairy alternatives
Grocery
Vitamins and supplements
Bulk items
Frozen foods
Beer and wine
Natural health products
Customers & end markets
Health-conscious consumers
Organic and natural food shoppers
U.S. grocery retail market
Market position

Niche player focused on natural and organic grocery retail within the broader grocery store industry.

Demand drivers
Medium cyclicality

Grocery retail is generally stable but can be influenced by economic cycles affecting consumer spending on premium products.