Sprouts Farmers Market operates as a specialty retailer of fresh, natural, and organic food in the United States. The company was founded in 2002 and is based in Phoenix, Arizona.
SFM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sprouts Farmers Market Inc. To summarize, we found that Sprouts Farmers Market Inc ranked in the 79th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 525.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SFM, they are:
Interest coverage, a measure of earnings relative to interest payments, is 15.88 -- which is good for besting 83.7% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
Sprouts Farmers Market Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 4.45% of tickers in our DCF set.
SFM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 4.45% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SANW, BRFS, LAUR, KR, and BTI can be thought of as valuation peers to SFM, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Sprouts Farmers Market, Inc. (SFM) Q2 2020 Earnings Conference Call July 29, 2020 5:00 P.M. ET Company Participants Susannah Livingston - Vice President of Investor Relations and Treasury Jack Sinclair - Chief Executive Officer Denise Paulonis - Chief Financial Officer Conference Call Participants Charles Grom - Gordon Haskett Research Advisors...
Sprouts Farmers (SFM) reports better-than-expected second-quarter results, wherein both net sales and earnings per share increase year over year. The company benefits from coronavirus-led demand spike.
In Q2, Sprouts Farmers Market (NASDAQ: SFM) saw a decline in both earnings and sales. Earnings decreased by 27.48% to $89.03 million, and sales dropped by 0.24% to $1.64 billion. In Q1, Sprouts Farmers Market earned $122.76 million and total sales reached $1.65 billion.Why ROCE Is Significant Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed in a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth in a company and is a sign of higher earnings per share for shareholders in the future. A low or negative ROCE suggests the opposite. In Q2, Sprouts Farmers Market posted an ROCE of 0.12%.View more earnings on SFMKeep in mind, while ROCE is a good measure of a...
Sprouts Farmers Market (SFM) reports comparable sales increased 9.1% in Q2 to top the consensus mark of +7.2%. Gross profit was up 450 bps as a percentage of sales to 37.3%. The company says the increase was driven by strategic changes in its promotional activities, partially accelerated by the COVID-19...