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Sprouts Farmers MarketMIL:1SFM 71 Debt-to-EBITDA is 1.72 as of Mar. 2026, which is 24% below its 10-year median of 2.26. GuruFocus rates MIL:1SFM with a GF Score™ of 71/100 and a GF Value™ of €85.03 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 256 Retail - Defensive companies, Sprouts Farmers Market ranks better than 51.17% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Sprouts Farmers Market's Debt-to-EBITDA or its related term are showing as below:
MIL:1SFM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.31 Med: 2.26 Max: 4.04
Current: 2.07
During the past 13 years, the highest Debt-to-EBITDA Ratio of Sprouts Farmers Market was 4.04. The lowest was 1.31. And the median was 2.26.
MIL:1SFM's Debt-to-EBITDA is ranked better than 51.17% of 256
companies
in the Retail - Defensive industry
Industry Median: 2.215
vs MIL:1SFM: 2.07
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Sprouts Farmers Market Debt-to-EBITDA Related Terms
Sprouts Farmers Market Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Sprouts Farmers Market's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:1SFM vs ACI, WMK, IMKTA: Debt-to-EBITDA Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sprouts Farmers Market Debt-to-EBITDA vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Sprouts Farmers Market (MIL:1SFM) has a Debt-to-EBITDA of 1.72 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sprouts Farmers Market. This is 24% below median its historical median of 2.26. Over the past decade, Sprouts Farmers Market's Debt-to-EBITDA has ranged from 1.31 to 4.04. According to the industry distribution chart, Sprouts Farmers Market ranks #125 out of 256 companies in the Retail - Defensive industry, placing it in the top 48.8%.
Is Sprouts Farmers Market's Debt-to-EBITDA too high?
Sprouts Farmers Market's current Debt-to-EBITDA of 1.72 is 24% below median its 10-year median of 2.26. Over the past 10 years, this metric has ranged from a low of 1.31 to a high of 4.04. The Retail - Defensive industry median Debt-to-EBITDA is 2.22. Sprouts Farmers Market's value of 1.72 is 22.3% below this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #125 out of 256 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Sprouts Farmers Market has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sprouts Farmers Market's Debt-to-EBITDA compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #125 out of 256 companies for Debt-to-EBITDA. This puts Sprouts Farmers Market in the upper half of its industry. The industry median Debt-to-EBITDA is 2.22. Sprouts Farmers Market's value of 1.72 is 22.3% below this benchmark. Historically, Sprouts Farmers Market's own Debt-to-EBITDA has ranged from 1.31 to 4.04 over the past decade. While the company's 10-year median is 2.26 vs. the industry median of 2.22, Sprouts Farmers Market has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Defensive company?
The median Debt-to-EBITDA among Retail - Defensive companies is 2.22, based on 256 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current Debt-to-EBITDA of 1.72 is 22.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sprouts Farmers Market. For the Retail - Defensive industry, the median Debt-to-EBITDA is 2.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Debt-to-EBITDA is 1.72, which is 24% below median its own 10-year median of 2.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sprouts Farmers Market stock overvalued right now?
Based on GuruFocus' analysis, Sprouts Farmers Market (MIL:1SFM) is currently considered Modestly Undervalued. The stock's GF Value™ is €85.03, compared to a current price of €65.62 — trading 22.8% below its estimated fair value. The current Debt-to-EBITDA is 1.72, which is 24% below median its 10-year median of 2.26 and 22.3% below the Retail - Defensive industry median of 2.22. Sprouts Farmers Market's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Sprouts Farmers Market (MIL:1SFM), the current Debt-to-EBITDA is 1.72 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sprouts Farmers Market (MIL:1SFM) Overvalued in 2026?
Based on GuruFocus' analysis, Sprouts Farmers Market stock appears to be undervalued.
The current stock price of €65.62 is trading 22.8% below its estimated GF Value™ of €85.03.
GuruFocus considers Sprouts Farmers Market to be Modestly Undervalued.
Key valuation signals for MIL:1SFM:
Debt-to-EBITDA: 1.72 (24% below median its 10-year median of 2.26)
GF Value™: €85.03 vs. price of €65.62 (22.8% below fair value)
Industry Position: 22.3% below the Retail - Defensive median (#125 of 256)
No single metric tells the full story. See the MIL:1SFM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sprouts Farmers Market Inc offers a specialty grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspire wellness naturally with a carefully curated assortment products paired with purpose-driven people. The company continues to bring products made with lifestyle-friendly ingredients such as organic, plant-based, and gluten-free. It approximately has 407 stores in nearly 23 states. The Company has one operating segment that is healthy grocery stores.
71GF Score
Get the complete analysis for MIL:1SFM
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