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Sprouts Farmers Market SFM

Sprouts Farmers Market scores good on business quality (7.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$65.14Oct 10, 2026
Business qualityGood
Next earningsOct 28, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Sprouts Farmers Market does

    Sprouts Farmers Market operates specialty grocery stores, making money by selling fresh, natural, and organic food directly to consumers. The company focuses on farmer's market style experiences to drive customer visits and basket sizes.

  2. What it does best

    Sprouts delivers an exceptional return on equity of 34.8%, outperforming peers like Kroger at 3.5% through highly efficient capital use and store format execution.

  3. The main risk

    Market fluctuations can trigger sharp stock pullbacks despite strong operating fundamentals, leaving shares vulnerable to broader retail sector sentiment shifts.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Gross margin hits 38.7% while operating margin stands at 7.5%, showing stable profitability that translates into healthy cash generation as scale increases.

MoatStrong

A differentiated natural foods brand locks in health-conscious consumers, backed by an operating margin ranking in the sector's top quartile at 7.5%.

GrowthFast

Revenue grew 14.1% to $9.0 billion, accelerating nicely over historical annual figures as new store openings and customer traffic expand the footprint.

Financial healthStrong

Debt-to-equity sits at a pristine 0.06 with interest coverage over 253x, yielding $357 million in free cash flow and a fortress balance sheet getting stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

2 sold $238K outside pre-planned sales.

Our sealed record on SFM

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is SFM a good business?

Sprouts Farmers Market scores good on the Cluenex quality check (7.4 of 10), measured against its own industry. Profitability is weak, moat strong, growth fast and financial health strong.

Are insiders buying SFM?

In the last 90 days of SEC Form 4 filings: 2 sold $238K outside pre-planned sales.

When does SFM report earnings?

Oct 28, 2026, after the close.

For members

See SFM today

  • Today's verdict on SFM, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Sprouts Farmers Market (SFM)”, https://cluenex.com/stocks/sfm/, data as of Oct 10, 2026.