Sprouts Farmers Market Stock Analysis, Valuation (NASDAQ:SFM)

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$21.04 $0.21 (1.01%) SFM stock closing price Jun 19, 2018 (Closing)

View the Sprouts Farmers Market stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for SFM stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Sprouts Farmers Market Inc Stock Rating 3/5

Amigobulls SFM stock analysis uses latest quarter 2018 Q1 financial data like Sprouts Farmers Market revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Sprouts Farmers Market valuation analysis. Our Sprouts Farmers Market stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy SFM stock?

  • The Year Over Year (YoY) revenue growth for Sprouts Farmers Market was 13.8% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 19.3.
  • The company has an operating cash flow which is 1.5686 times the net income.
  • The Sprouts Farmers Market stock currently trades at a price to earnings ratio of 17.8, compared to the sector average of 20.8. We rate this as a positive.
  • When compared with the Retail-Wholesale sector average PS ratio of 0.8, the price-to-sales ratio of 0.6 for SFM stock is attractive.
  • Sprouts Farmers Market's return on invested capital of 16.2 is good.
  • The LTM ROE of 27.8 for Sprouts Farmers Market is attractive.

Should you sell SFM stock?

  • With a debt/equity ratio of 0.78, Sprouts Farmers Market is highly leveraged in comparison to -sectordesc- peers.

Comments on this video and Sprouts Farmers Market stock

Investors can make use of the Amigobulls Sprouts Farmers Market stock analysis to ascertain how SFM stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Sprouts Farmers Market revenue growth and profit or net income are two main metrics which help in identifying whether SFM stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Sprouts Farmers Market stock.