Sprouts Farmers Market, Inc. (SFM) Stock

Sprouts Farmers Market, Inc. (SFM) is a Consumer Discretionary stock trading at $78.35 (as of 2026-08-20), with a market capitalization of $7.31B and a trailing P/E of 14.5. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Sprouts Farmers Market, Inc. operates grocery stores in the United States, offering fresh, natural, and organic food and related products. Its assortment includes perishable departments such as produce, meat, seafood, deli, bakery, floral, and dairy, as well as non-perishable grocery and health items; as of January 2, 2022, it ran 374 stores across 23 states.

Understand Sprouts Farmers Market, Inc.: how it makes money

Sprouts Farmers Market sells fresh, natural, and organic grocery items, mixing perishable departments like produce, meat, seafood, deli, bakery, floral, and dairy with non-perishables like grocery and supplements, and it makes money by generating net sales through its store operations.

Store economics are driven by (1) comparable store sales performance and (2) expanding the store footprint, with an organic-focused assortment (like organic produce mix) supporting customer demand and sales.

Revenue by segment (latest quarter)
Net Sales	$2.3B

Business quality (Solid): Clear business description and several operational KPIs are provided, but there is no detailed segment split beyond total net sales, so drivers must be inferred from the available operating metrics (store growth, comparable sales, and product mix).

Valuation: At 16× earnings, SFM trades 18% below the Retail average (19×). Note: one-time items can distort reported P/E.

Bull case

Organic assortment is a defined mix lever: Organic Produce Sales Share is 55%, and Produce Sales From Local Farms is 19% of produce sales.
Growth pipeline exists alongside some execution: Approved New Stores in Pipeline is 110, with Executed Leases in Pipeline at 60 and New Store Openings at 6.
Loyalty customers appear to spend more per basket: Loyalty Customer Basket Size Relative to Non-Loyalty Customers is 70%, and Percentage of Transactions Tied to Loyalty Customers is 7.5%.

Bear case

Expansion plans may not fully translate into near-term openings: The pipeline is larger (Approved New Stores in Pipeline 110) than executed leases (60) and realized openings (6).
Store network churn is present: Store Closures are 3.
Customer data participation is limited: Percent of Customers Providing Information is 18%, which can constrain personalization and retention efforts.

Valuation — source: SEC EDGAR (first-party)
Price	$78.35
Market Cap	$7.31B
P/E Ratio	14.5
EV / EBITDA	8.4
Price / Book	4.87
Price / Sales	0.81
FCF Yield	4.9%
DCF Value (model)	$154.49
DCF Upside vs Price	97.2%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$8.81B
Net Margin	5.9%
Revenue Growth (YoY)	4.7%
EPS Growth (YoY)	0.0%
FCF Growth (YoY)	-10.8%

Financial Health — source: SEC EDGAR
Altman Z-Score	4.45 (safe)

Valuation vs Sector & Industry
Stock P/E	14.5
Sector P/E (Consumer Discretionary)	20.5
Industry P/E (Retail)	19.5
vs Sector	-29.1%
vs Industry	-25.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	FMR LLC ($985.27M)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Consumer Discretionary
Industry	Retail
CEO	Jack L. Sinclair
Employees	35,000
Country	US
IPO Date	2013-08-01

Related Companies (Business model: Brick-and-Mortar Retail (incl. Omnichannel); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.