Recent News
On July 25, 2025 Sprouts closed a $600 million senior secured revolving credit facility that replaces its prior $700 million facility; at closing the company reported no outstanding borrowings and $23 million of letters of credit, leaving $577 million in availability.
On or about early September 2025 the company executed a new ten-year distribution agreement with KeHE Distributors to replace the prior contract, formalizing product pricing, service levels and distribution procedures for dry and frozen goods.
Technical Analysis
ADX / DI+/DI-: ADX at 56.42 indicates a very strong trend; DI- at 44.45 is increasing while DI+ at 7.24 is decreasing, which presents a clear bearish directional bias. The strength reading amplifies risk of continued downside until directional balance shifts.
MACD: MACD at -9.06 with the MACD line below the signal line (-7.85) and a decreasing MACD_trend confirms bearish momentum; the current configuration favors continued selling pressure unless MACD crosses back above its signal line.
MRO (Momentum/Regression Oscillator): MRO at -32.24 sits negative, indicating the price trades below the modeled target and therefore carries measurable upside potential toward that target; the MRO_trend decreasing enlarges that gap in the near term.
RSI: RSI at 28.0 and falling signals oversold conditions, consistent with momentum exhaustion readings that often precede short-term mean reversion but do not negate the prevailing negative trend evidenced elsewhere.
Price vs Moving Averages and Cloud: Last close $105.31 sits below the 20-day average $116.26, 50-day average $138.24 and 200-day average $151.03, and below the tenkan/ kijun lines and Ichimoku cloud components, which aligns with the directional indicators and supports near-term downside pressure.
Bollinger Bands & Volume: Price below the 1x lower Bollinger band ($107.78) but above the 2x lower band ($99.30) suggests an oversold excursion without an extreme breach; recent volume ~1.90M trails the 10-day average ~2.44M, indicating weaker follow-through selling on the latest move.
Fundamental Analysis
Profitability & Margins: EBIT totaled $180,170,000 and EBIT margin equals 8.11%, above the industry peer mean of 3.90% and the industry peer median of 4.00%, with EBIT margin rising 18.83% year-over-year but declining 20.29% quarter-over-quarter. Operating margin stands at 8.145% and gross margin at 38.845%, with gross margin up 2.39% YoY and slightly lower QoQ.
Earnings & Cash Flow: Reported EPS $1.35 versus an estimate $1.24 produced an EPS surprise of +8.87%, supporting recent positive fundamental momentum. Operating cash flow $111,248,000 and free cash flow $50,408,000 yield a free cash flow to net income ratio of 37.70% and a cash flow to earnings multiple above parity at 1.21x; free cash flow yield sits at 0.335% and contracted YoY.
Balance Sheet & Leverage: Total debt $1,755,831,000 and total equity $1,356,500,000 produce debt-to-equity of 1.29 and debt-to-EBITDA of 6.90; interest coverage remains robust at 470.42x, reflecting minimal interest burden despite elevated nominal leverage.
Efficiency & Working Capital: Asset turnover equals 0.5905 with days inventory outstanding ~23.37 and a cash conversion cycle near 7.76 days; receivables turnover at 33.34 highlights rapid collections. Current ratio 0.98 and quick ratio 0.50 reflect tighter near-term liquidity, offset in part by $261,404,000 in cash and short-term investments and the newly secured $600 million revolver.
Valuation Notes: Price-to-earnings at 120.18x and price-to-book at 11.10x sit within the range of market multiples for similar growth profiles; forward PE approximates 154.04x. The current valuation as determined by WMDST classifies the stock as under-valued, a conclusion supported by above-peer operating margins and an EPS beat, though elevated leverage and compressed short-term cash conversion metrics temper that view.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-30 |
| NEXT REPORT DATE: | 2025-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 287.7 M |
| Operating Cash Flow | $ 111.2 M | |
| Capital Expenditures | $ -60.84 M | |
| Change In Working Capital | $ -104.05 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -24.24 M | |
| End Period Cash Flow | $ 263.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.2 B | |
| Forward Revenue | $ 426.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.4 B | |
| Depreciation | $ 74.3 M | |
| Depreciation and Amortization | $ 74.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.0 B | |
| PROFITABILITY | ||
| Gross Profit | $ 862.6 M | |
| EBITDA | $ 254.5 M | |
| EBIT | $ 180.2 M | |
| Operating Income | $ 180.9 M | |
| Interest Income | $ 1.0 M | |
| Interest Expense | $ 383.0 K | |
| Net Interest Income | $ 431.0 K | |
| Income Before Tax | $ 179.8 M | |
| Tax Provision | $ 46.1 M | |
| Tax Rate | 25.6 % | |
| Net Income | $ 133.7 M | |
| Net Income From Continuing Operations | $ 133.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.24 | |
| EPS Actual | $ 1.35 | |
| EPS Difference | $ 0.11 | |
| EPS Surprise | 8.871 % | |
| Forward EPS | $ 1.05 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.8 B | |
| Intangible Assets | $ 589.9 M | |
| Net Tangible Assets | $ 766.6 M | |
| Total Current Assets | $ 709.3 M | |
| Cash and Short-Term Investments | $ 261.4 M | |
| Cash | $ 261.4 M | |
| Net Receivables | $ 61.5 M | |
| Inventory | $ 351.1 M | |
| Long-Term Investments | $ 17.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 249.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 721.0 M | |
| Net Debt | — | |
| Total Debt | $ 1.8 B | |
| Total Liabilities | $ 2.4 B | |
| EQUITY | ||
| Total Equity | $ 1.4 B | |
| Retained Earnings | $ 532.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 13.87 | |
| Shares Outstanding | 97.769 M | |
| Revenue Per-Share | $ 22.71 | |
| VALUATION | Market Capitalization | $ 15.1 B |
| Enterprise Value | $ 16.5 B | |
| Enterprise Multiple | 65.023 | |
| Enterprise Multiple QoQ | 18.724 % | |
| Enterprise Multiple YoY | 61.604 % | |
| Enterprise Multiple IPRWA | high: 80.109 median: 80.109 mean: 75.751 SFM: 65.023 low: 20.338 |
|
| EV/R | 7.452 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.789 | |
| Asset To Liability | 1.559 | |
| Debt To Capital | 0.564 | |
| Debt To Assets | 0.464 | |
| Debt To Assets QoQ | 0.931 % | |
| Debt To Assets YoY | 520.634 % | |
| Debt To Assets IPRWA | high: 0.541 SFM: 0.464 mean: 0.274 median: 0.256 low: 0.086 |
|
| Debt To Equity | 1.294 | |
| Debt To Equity QoQ | -3.014 % | |
| Debt To Equity YoY | 544.227 % | |
| Debt To Equity IPRWA | high: 4.44 SFM: 1.294 mean: 0.971 median: 0.802 low: 0.127 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 11.097 | |
| Price To Book QoQ | -4.398 % | |
| Price To Book YoY | 80.659 % | |
| Price To Book IPRWA | SFM: 11.097 high: 8.869 median: 8.869 mean: 8.51 low: 0.77 |
|
| Price To Earnings (P/E) | 120.177 | |
| Price To Earnings QoQ | 42.84 % | |
| Price To Earnings YoY | 45.198 % | |
| Price To Earnings IPRWA | high: 152.562 median: 152.562 mean: 143.968 SFM: 120.177 low: 39.37 |
|
| PE/G Ratio | -4.729 | |
| Price To Sales (P/S) | 6.779 | |
| Price To Sales QoQ | 1.406 % | |
| Price To Sales YoY | 64.635 % | |
| Price To Sales IPRWA | SFM: 6.779 high: 4.488 median: 4.488 mean: 4.192 low: 0.458 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 154.04 | |
| Forward PE/G | -6.061 | |
| Forward P/S | 35.317 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 29.454 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.59 | |
| Asset Turnover Ratio QoQ | -2.59 % | |
| Asset Turnover Ratio YoY | 7.317 % | |
| Asset Turnover Ratio IPRWA | high: 0.935 mean: 0.65 median: 0.633 SFM: 0.59 low: 0.358 |
|
| Receivables Turnover | 33.34 | |
| Receivables Turnover Ratio QoQ | -23.553 % | |
| Receivables Turnover Ratio YoY | -40.411 % | |
| Receivables Turnover Ratio IPRWA | SFM: 33.34 high: 28.538 mean: 17.273 median: 16.846 low: 13.363 |
|
| Inventory Turnover | 3.928 | |
| Inventory Turnover Ratio QoQ | -0.545 % | |
| Inventory Turnover Ratio YoY | 7.268 % | |
| Inventory Turnover Ratio IPRWA | high: 7.944 SFM: 3.928 mean: 2.366 median: 2.183 low: 2.082 |
|
| Days Sales Outstanding (DSO) | 2.737 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 7.756 | |
| Cash Conversion Cycle Days QoQ | -9.797 % | |
| Cash Conversion Cycle Days YoY | -38.889 % | |
| Cash Conversion Cycle Days IPRWA | high: 34.116 SFM: 7.756 median: 4.591 mean: 4.249 low: -7.085 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -190.462 | |
| CapEx To Revenue | -0.027 | |
| CapEx To Depreciation | -0.819 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.4 B | |
| Invested Capital | $ 1.4 B | |
| Net Tangible Assets | $ 766.6 M | |
| Net Working Capital | $ -11.66 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.363 | |
| Current Ratio | 0.984 | |
| Current Ratio QoQ | 3.716 % | |
| Current Ratio YoY | -4.786 % | |
| Current Ratio IPRWA | high: 3.144 SFM: 0.984 mean: 0.797 median: 0.78 low: 0.768 |
|
| Quick Ratio | 0.497 | |
| Quick Ratio QoQ | -2.158 % | |
| Quick Ratio YoY | 12.649 % | |
| Quick Ratio IPRWA | high: 1.527 SFM: 0.497 mean: 0.24 median: 0.221 low: 0.144 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.899 | |
| Cost Of Debt | 0.016 % | |
| Interest Coverage Ratio | 470.418 | |
| Interest Coverage Ratio QoQ | -20.234 % | |
| Interest Coverage Ratio YoY | 566.219 % | |
| Interest Coverage Ratio IPRWA | SFM: 470.418 high: 18.889 median: 10.41 mean: 10.214 low: 1.825 |
|
| Operating Cash Flow Ratio | 0.225 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 18.346 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.203 % | |
| Revenue Growth | -0.708 % | |
| Revenue Growth QoQ | -105.884 % | |
| Revenue Growth YoY | -237.476 % | |
| Revenue Growth IPRWA | high: 32.348 % SFM: -0.708 % mean: -5.388 % low: -8.277 % median: -8.277 % |
|
| Earnings Growth | -25.414 % | |
| Earnings Growth QoQ | -119.683 % | |
| Earnings Growth YoY | 58.136 % | |
| Earnings Growth IPRWA | high: 76.923 % mean: -4.409 % low: -7.576 % median: -7.576 % SFM: -25.414 % |
|
| MARGINS | ||
| Gross Margin | 38.845 % | |
| Gross Margin QoQ | -1.988 % | |
| Gross Margin YoY | 2.391 % | |
| Gross Margin IPRWA | SFM: 38.845 % high: 30.573 % median: 24.942 % mean: 24.792 % low: 18.813 % |
|
| EBIT Margin | 8.114 % | |
| EBIT Margin QoQ | -20.287 % | |
| EBIT Margin YoY | 18.834 % | |
| EBIT Margin IPRWA | SFM: 8.114 % high: 4.004 % median: 4.004 % mean: 3.901 % low: 1.168 % |
|
| Return On Sales (ROS) | 8.145 % | |
| Return On Sales QoQ | -19.982 % | |
| Return On Sales YoY | 19.288 % | |
| Return On Sales IPRWA | SFM: 8.145 % high: 4.004 % median: 4.004 % mean: 3.901 % low: 1.678 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 50.4 M | |
| Free Cash Flow Yield | 0.335 % | |
| Free Cash Flow Yield QoQ | -79.102 % | |
| Free Cash Flow Yield YoY | -22.989 % | |
| Free Cash Flow Yield IPRWA | high: 3.696 % SFM: 0.335 % mean: 0.221 % median: 0.057 % low: -2.002 % |
|
| Free Cash Growth | -78.962 % | |
| Free Cash Growth QoQ | -124.181 % | |
| Free Cash Growth YoY | -1.132 % | |
| Free Cash Growth IPRWA | high: 112.5 % SFM: -78.962 % mean: -80.66 % median: -93.399 % low: -232.971 % |
|
| Free Cash To Net Income | 0.377 | |
| Cash Flow Margin | 7.313 % | |
| Cash Flow To Earnings | 1.215 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.555 % | |
| Return On Assets QoQ | -27.137 % | |
| Return On Assets YoY | 28.386 % | |
| Return On Assets IPRWA | SFM: 3.555 % high: 2.106 % median: 1.715 % mean: 1.701 % low: 0.15 % |
|
| Return On Capital Employed (ROCE) | 5.884 % | |
| Return On Equity (ROE) | 0.099 | |
| Return On Equity QoQ | -29.484 % | |
| Return On Equity YoY | 31.291 % | |
| Return On Equity IPRWA | SFM: 0.099 high: 0.097 mean: 0.056 median: 0.054 low: 0.004 |
|
| DuPont ROE | 10.112 % | |
| Return On Invested Capital (ROIC) | 9.877 % | |
| Return On Invested Capital QoQ | -29.455 % | |
| Return On Invested Capital YoY | -92.063 % | |
| Return On Invested Capital IPRWA | SFM: 9.877 % high: 6.286 % mean: 3.972 % median: 3.948 % low: 0.661 % |
|