Is the business good?
How good a business is SFM?
Sprouts Farmers Market, Inc. earns 45% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
45%
Return on invested capital · cost of capital 9.0% · 36 points above what the capital costs: growth creates value
- Operating margin
- 7.6%
Operating margin · Grocery Stores median 2.5% · 12 months to Q1 2026
- Cash conversion
- 0.71×
Cash conversion · 1.09× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −4.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.0% |
| FY2021 | 5.5% |
| FY2022 | 5.6% |
| FY2023 | 5.1% |
| FY2024 | 6.5% |
| FY2025 | 7.8% |
Details›
- Gross margin12 months to Q1 2026
- 39%
- Operating margin12 months to Q1 2026
- 7.6%
- Net margin12 months to Q1 2026
- 5.7%
- Free cash flow margin
- 4.1%
- Revenue, trailing twelve months
- $8.90B
- Free cash flow, trailing twelve months
- $362M
- Net income, trailing twelve months
- $507M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 45%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Grocery Stores
Ranks #2 of 4 by Smart Score