Company valuation · Consumer Defensive
SFM: Hold with a $109.81 price target
Sprouts Farmers Market LLC. Borrowing is lower relative to earnings, but capital spending changes the cash picture.
- Model target · USD
- $109.81 For 2027-09-16
- Model rating
- Hold Reviewed 2026-09-16
- Reference weekly close
- $72.76 2026-09-11 · USD
Investment view
Borrowing is lower relative to earnings, but capital spending changes the cash picture.
Target and reference price
Target for 2027-09-16: $109.81 USD, +50.9% versus the $72.76 weekly close on 2026-09-11. Price return only; dividends, fees and tax excluded.
Price and earnings
Over 1 year (2025-09-12 to 2026-09-11), price changed -46.5% and trailing EPS changed +7.4%. A wider gap changes the earnings multiple; it does not establish fair value.
Supporting evidence
Net debt / EBITDA: 2.2× for SFM, against 3.1× across 9 comparable peers.
Revenue changed +4.7% from the same quarter last year, through 2026-06-30. The previous quarter’s year-on-year change was +4.1%.
Risks to the case
Operating cash covers 1.34 times profit, but cash after capital spending covers 0.71 times. Cash generation is stronger before the investment bill is paid.
Across 2 completed quarters since 2025-12-31, net income was 292.9m versus 313.7m in the matching prior-year periods (USD). Check whether the latest quarter changes that direction.
What to monitor
Watch whether cash after capital spending closes the gap with profit. It currently covers 0.71 times profit over four quarters.
The latest quarterly margin changed -0.6 percentage points from a year earlier. Check sales volumes, pricing and unusual gains in the next filing.
Recheck the valuation gap alongside profitability and growth after new results. A discount alone does not establish value.
Valuation assumptions
Starting annual sales growth: 6.19%.
Net profit margin: 4.83%.
About this assessment
Review recorded on 2026-09-16. This is a dated summary of an automated company valuation. The full report includes the financial evidence, alternative scenarios and review history. Consult the latest report before using an earlier target. Automated model research, not personal investment advice. Targets depend on assumptions; returns are not guaranteed.