Recent News
Oct 22, 2025: Goldman Sachs maintained coverage of Sprouts with a Buy recommendation. Oct 30, 2025: Evercore ISI maintained an Outperform rating. Nov 14, 2025: Sprouts opened a new store in San Leandro, California, expanding Bay Area presence. Dec 16, 2025: A securities-fraud class action filing named Sprouts, alleging disclosures between June 4 and Oct 29, 2025.
Technical Analysis
ADX stands at 35.55, indicating a strong underlying trend that amplifies directional readings and increases the near-term significance of other momentum signals relative to WMDST’s fair-valued assessment.
DI+ shows a peak-and-reversal, a bearish directional read; DI- shows a peak-and-reversal, a bullish directional read. The pair of peak-and-reversal directional readings suggest recent trend exhaustion and a transition to lower conviction directional movement, supporting a consolidation bias around current prices.
MACD sits at -2.83 with a peak-and-reversal trend, which signals bearish momentum; however, MACD currently sits above its signal line (-3.33), producing a short-term bullish crossover signal that conflicts with the underlying MACD decline.
MRO registers -26.23 with a dip-and-reversal trend. The negative MRO indicates price below target and potential for upward price pressure; the dip-and-reversal framing supports a corrective lift toward fair value targets rather than a sustained breakout.
RSI at 34.37 with a peak-and-reversal trend indicates a weakening oscillator near oversold territory. That combination increases the probability of short-term mean reversion while price remains below several moving averages.
Price closed at $79.23 below the 20-day average ($82.86), 50-day average ($90.42), and 200-day average ($136.09). The 12-day EMA shows a decreasing trend and the Ichimoku components (Tenkan $83.03, Kijun $81.64, Senkou A $94.83, Senkou B $114.00) position price beneath the cloud, reinforcing a bearish medium-term bias but with support near the 52-week low of $75.75 and lower Bollinger boundary ($80.13 for 1x std dev).
Volume sits near the 10-day average (1.99M vs 1.94M), signaling no decisive breakout demand. Short-term volatility measures show elevated 42-day beta (1.41) versus 52-week beta (0.78), implying recent sessions carry higher sensitivity to market moves.
Fundamental Analysis
Profitability: EBIT equals $158.6M and EBIT margin equals 7.21%, above the industry peer mean (5.44%) and industry peer median (5.69%). Operating margin equals 7.22%, also above the industry peer mean (3.99%). QoQ EBIT margin fell 11.15%, while YoY EBIT margin increased 13.21%.
Top-line and flows: Total revenue reached $2,200.43M. Quarter-over-quarter revenue growth measured 28.25%, while period revenue growth registered -0.91%. Reported year-over-year revenue change shows -132.92%; QoQ strength contrasts with the reported YoY figure and warrants attention to period definitions when reconciling trends.
Cash and leverage: Cash and short-term investments total $322.4M with a cash ratio of 41.26%. Total debt equals $1,858.93M, debt-to-assets 46.32%, and debt-to-EBITDA 7.85x, indicating elevated leverage relative to operating cashflow. Interest coverage remains robust at 293.21x, reflecting minimal interest expense in current earnings context.
Returns and efficiency: Return on equity equals 8.37%, slightly above the industry peer mean (7.67%). Return on assets equals 3.08%, marginally above the industry peer mean (2.52%). Asset turnover stands at 0.564, near the lower side of peer activity measures. Cash conversion cycle equals 10.47 days, above the industry peer mean of 4.09 days.
Capital allocation and cash flow: Free cash flow equals $111.37M and free cash flow yield equals 0.92%, slightly above the industry peer mean of 0.87%. EPS came in at $1.22 versus an estimate of $1.17, producing a 4.27% EPS surprise and a $0.05 beat versus consensus. Price ratios show a trailing P/E of 102.17 and forward P/E of 134.10; price-to-book stands at 8.47, near the industry peer mean of 8.31.
Valuation: WMDST values the stock as fair-valued. Enterprise multiple of 57.82 sits modestly below the industry peer mean of 59.43, while elevated P/E and forward multiples reflect market expectations for earnings progression despite near-term margin and revenue variability.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-29 |
| NEXT REPORT DATE: | 2026-01-28 |
| CASH FLOW | Begin Period Cash Flow | $ 263.5 M |
| Operating Cash Flow | $ 167.1 M | |
| Capital Expenditures | $ -55.76 M | |
| Change In Working Capital | $ -34.16 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 62.0 M | |
| End Period Cash Flow | $ 325.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.2 B | |
| Forward Revenue | $ 643.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.3 B | |
| Depreciation | $ 78.0 M | |
| Depreciation and Amortization | $ 78.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.0 B | |
| PROFITABILITY | ||
| Gross Profit | $ 851.1 M | |
| EBITDA | $ 236.7 M | |
| EBIT | $ 158.6 M | |
| Operating Income | $ 158.9 M | |
| Interest Income | $ 1.6 M | |
| Interest Expense | $ 541.0 K | |
| Net Interest Income | $ 690.0 K | |
| Income Before Tax | $ 158.1 M | |
| Tax Provision | $ 38.0 M | |
| Tax Rate | 24.0 % | |
| Net Income | $ 120.1 M | |
| Net Income From Continuing Operations | $ 120.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.17 | |
| EPS Actual | $ 1.22 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 4.274 % | |
| Forward EPS | $ 1.44 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.0 B | |
| Intangible Assets | $ 590.0 M | |
| Net Tangible Assets | $ 844.6 M | |
| Total Current Assets | $ 817.5 M | |
| Cash and Short-Term Investments | $ 322.4 M | |
| Cash | $ 322.4 M | |
| Net Receivables | $ 64.8 M | |
| Inventory | $ 399.9 M | |
| Long-Term Investments | $ 19.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 268.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 781.5 M | |
| Net Debt | — | |
| Total Debt | $ 1.9 B | |
| Total Liabilities | $ 2.6 B | |
| EQUITY | ||
| Total Equity | $ 1.4 B | |
| Retained Earnings | $ 602.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 14.72 | |
| Shares Outstanding | 97.451 M | |
| Revenue Per-Share | $ 22.58 | |
| VALUATION | Market Capitalization | $ 12.1 B |
| Enterprise Value | $ 13.7 B | |
| Enterprise Multiple | 57.819 | |
| Enterprise Multiple QoQ | -11.08 % | |
| Enterprise Multiple YoY | 6.075 % | |
| Enterprise Multiple IPRWA | high: 61.432 median: 61.432 mean: 59.427 SFM: 57.819 low: 21.773 |
|
| EV/R | 6.219 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.797 | |
| Asset To Liability | 1.556 | |
| Debt To Capital | 0.564 | |
| Debt To Assets | 0.463 | |
| Debt To Assets QoQ | -0.194 % | |
| Debt To Assets YoY | 545.229 % | |
| Debt To Assets IPRWA | high: 0.543 SFM: 0.463 mean: 0.258 median: 0.24 low: 0.087 |
|
| Debt To Equity | 1.296 | |
| Debt To Equity QoQ | 0.111 % | |
| Debt To Equity YoY | 576.315 % | |
| Debt To Equity IPRWA | high: 4.73 SFM: 1.296 mean: 0.884 median: 0.722 low: 0.13 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 8.468 | |
| Price To Book QoQ | -23.697 % | |
| Price To Book YoY | 7.153 % | |
| Price To Book IPRWA | high: 8.638 median: 8.638 SFM: 8.468 mean: 8.315 low: 0.818 |
|
| Price To Earnings (P/E) | 102.172 | |
| Price To Earnings QoQ | -14.982 % | |
| Price To Earnings YoY | -12.39 % | |
| Price To Earnings IPRWA | high: 144.188 median: 144.188 mean: 137.945 SFM: 102.172 low: 42.602 |
|
| PE/G Ratio | -10.61 | |
| Price To Sales (P/S) | 5.52 | |
| Price To Sales QoQ | -18.567 % | |
| Price To Sales YoY | 1.173 % | |
| Price To Sales IPRWA | SFM: 5.52 high: 4.387 median: 4.387 mean: 4.136 low: 0.547 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 134.102 | |
| Forward PE/G | -13.925 | |
| Forward P/S | 25.921 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 13.161 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.564 | |
| Asset Turnover Ratio QoQ | -4.402 % | |
| Asset Turnover Ratio YoY | 1.481 % | |
| Asset Turnover Ratio IPRWA | high: 0.748 median: 0.665 mean: 0.665 SFM: 0.564 low: 0.535 |
|
| Receivables Turnover | 34.817 | |
| Receivables Turnover Ratio QoQ | 4.433 % | |
| Receivables Turnover Ratio YoY | -49.49 % | |
| Receivables Turnover Ratio IPRWA | SFM: 34.817 high: 21.044 median: 17.561 mean: 17.532 low: 13.118 |
|
| Inventory Turnover | 3.593 | |
| Inventory Turnover Ratio QoQ | -8.528 % | |
| Inventory Turnover Ratio YoY | -2.316 % | |
| Inventory Turnover Ratio IPRWA | high: 3.77 SFM: 3.593 mean: 2.399 median: 2.305 low: 2.13 |
|
| Days Sales Outstanding (DSO) | 2.621 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 10.474 | |
| Cash Conversion Cycle Days QoQ | 35.042 % | |
| Cash Conversion Cycle Days YoY | -18.775 % | |
| Cash Conversion Cycle Days IPRWA | high: 33.897 SFM: 10.474 median: 4.245 mean: 4.087 low: -3.251 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 61.037 | |
| CapEx To Revenue | -0.025 | |
| CapEx To Depreciation | -0.715 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.4 B | |
| Invested Capital | $ 1.4 B | |
| Net Tangible Assets | $ 844.6 M | |
| Net Working Capital | $ 36.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.413 | |
| Current Ratio | 1.046 | |
| Current Ratio QoQ | 6.332 % | |
| Current Ratio YoY | -7.087 % | |
| Current Ratio IPRWA | high: 3.221 SFM: 1.046 mean: 0.807 low: 0.792 median: 0.792 |
|
| Quick Ratio | 0.534 | |
| Quick Ratio QoQ | 7.554 % | |
| Quick Ratio YoY | -9.596 % | |
| Quick Ratio IPRWA | high: 1.626 SFM: 0.534 mean: 0.253 median: 0.235 low: 0.168 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 7.855 | |
| Cost Of Debt | 0.023 % | |
| Interest Coverage Ratio | 293.214 | |
| Interest Coverage Ratio QoQ | -37.669 % | |
| Interest Coverage Ratio YoY | -7.47 % | |
| Interest Coverage Ratio IPRWA | SFM: 293.214 high: 20.834 median: 13.118 mean: 12.729 low: 2.851 |
|
| Operating Cash Flow Ratio | 0.212 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 17.38 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 6.077 % | |
| Revenue Growth | -0.908 % | |
| Revenue Growth QoQ | 28.249 % | |
| Revenue Growth YoY | -132.922 % | |
| Revenue Growth IPRWA | high: 7.121 % median: 7.121 % mean: 4.96 % SFM: -0.908 % low: -24.775 % |
|
| Earnings Growth | -9.63 % | |
| Earnings Growth QoQ | -62.107 % | |
| Earnings Growth YoY | 201.786 % | |
| Earnings Growth IPRWA | high: 11.475 % median: 11.475 % mean: 8.677 % SFM: -9.63 % low: -30.201 % |
|
| MARGINS | ||
| Gross Margin | 38.677 % | |
| Gross Margin QoQ | -0.432 % | |
| Gross Margin YoY | 1.57 % | |
| Gross Margin IPRWA | SFM: 38.677 % high: 26.996 % median: 25.158 % mean: 24.957 % low: 18.701 % |
|
| EBIT Margin | 7.209 % | |
| EBIT Margin QoQ | -11.154 % | |
| EBIT Margin YoY | 13.207 % | |
| EBIT Margin IPRWA | SFM: 7.209 % high: 5.687 % median: 5.687 % mean: 5.438 % low: 1.718 % |
|
| Return On Sales (ROS) | 7.219 % | |
| Return On Sales QoQ | -11.369 % | |
| Return On Sales YoY | 13.364 % | |
| Return On Sales IPRWA | SFM: 7.219 % high: 4.833 % median: 4.107 % mean: 3.988 % low: 1.584 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 111.4 M | |
| Free Cash Flow Yield | 0.917 % | |
| Free Cash Flow Yield QoQ | 173.731 % | |
| Free Cash Flow Yield YoY | -37.704 % | |
| Free Cash Flow Yield IPRWA | high: 2.783 % SFM: 0.917 % mean: 0.87 % median: 0.837 % low: -0.27 % |
|
| Free Cash Growth | 120.941 % | |
| Free Cash Growth QoQ | -253.164 % | |
| Free Cash Growth YoY | -66.482 % | |
| Free Cash Growth IPRWA | high: 1433.647 % median: 1433.647 % mean: 1310.929 % SFM: 120.941 % low: -44.344 % |
|
| Free Cash To Net Income | 0.927 | |
| Cash Flow Margin | 7.516 % | |
| Cash Flow To Earnings | 1.377 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.081 % | |
| Return On Assets QoQ | -13.333 % | |
| Return On Assets YoY | 17.64 % | |
| Return On Assets IPRWA | SFM: 3.081 % high: 2.635 % median: 2.635 % mean: 2.515 % low: 0.632 % |
|
| Return On Capital Employed (ROCE) | 4.909 % | |
| Return On Equity (ROE) | 0.084 | |
| Return On Equity QoQ | -15.047 % | |
| Return On Equity YoY | 22.789 % | |
| Return On Equity IPRWA | SFM: 0.084 high: 0.078 median: 0.078 mean: 0.077 low: 0.014 |
|
| DuPont ROE | 8.608 % | |
| Return On Invested Capital (ROIC) | 8.404 % | |
| Return On Invested Capital QoQ | -14.913 % | |
| Return On Invested Capital YoY | -104.777 % | |
| Return On Invested Capital IPRWA | SFM: 8.404 % high: 6.081 % median: 5.794 % mean: 5.582 % low: 1.261 % |
|