Sprouts Farmers Market, Inc. (SFM) on Decifer

Decifer ranks SFM number 123 of 277 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 15% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 14% a year, profits grew 41% over the past year, and growth is speeding up, not slowing down.
• It keeps a healthy share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Strong 15% returns and 41% profit growth with widening margins are solid, but revenue growing about 14% a year, no worldview role, and 11 out of 35 momentum keep it modest.

The current read

The evidence on SFM lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Consumer & Retail: Sprouts Farmers Market, Inc. operates in grocery stores. That places it inside the Consumer & Retail story.

Read the full SFM research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.