Sprouts Farmers MarketFRA:1FA +3.14%88 Gross Margin % is 39.38% as of Mar. 2026, which is 8% above its 10-year median of 36.45. GuruFocus rates FRA:1FA with a GF Score™ of 88/100 and a GF Value™ of €81.08 (Fairly Valued). The stock has 1 warning sign investors should review. Among 303 Retail - Defensive companies, Sprouts Farmers Market ranks better than 83.83% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sprouts Farmers Market had a gross margin of 39.38% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sprouts Farmers Market Gross Margin % Related Terms
Sprouts Farmers Market Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sprouts Farmers Market's Gross Margin % 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.
FRA:1FA vs ACI, WMK, IMKTA: Gross Margin % Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sprouts Farmers Market (FRA:1FA) has a Gross Margin % of 39.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sprouts Farmers Market and its competitors. This is near median its historical median of 36.45. Over the past decade, Sprouts Farmers Market's Gross Margin % has ranged from 33.56 to 38.80. According to the industry distribution chart, Sprouts Farmers Market ranks #49 out of 303 companies in the Retail - Defensive industry, placing it in the top 16.2%.
Is Sprouts Farmers Market's Gross Margin % too high?
Sprouts Farmers Market's current Gross Margin % of 39.38% is near median its 10-year median of 36.45. Over the past 10 years, this metric has ranged from a low of 33.56 to a high of 38.80. The Retail - Defensive industry median Gross Margin % is 24.08. Sprouts Farmers Market's value of 39.38% is 63.5% above this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #49 out of 303 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Sprouts Farmers Market has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sprouts Farmers Market's Gross Margin % compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #49 out of 303 companies for Gross Margin %. This places Sprouts Farmers Market in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.08. Sprouts Farmers Market's value of 39.38% is 63.5% above this benchmark. Historically, Sprouts Farmers Market's own Gross Margin % has ranged from 33.56 to 38.80 over the past decade. While the company's 10-year median is 36.45 vs. the industry median of 24.08, Sprouts Farmers Market has consistently been above 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 Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 303 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current Gross Margin % of 39.38% is 63.5% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Gross Margin % is 39.38%, which is near median its own 10-year median of 36.45. 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 (FRA:1FA) is currently considered Fairly Valued. The stock's GF Value™ is €81.08, compared to a current price of €73.86 — trading 8.9% below its estimated fair value. The current Gross Margin % is 39.38%, which is near median its 10-year median of 36.45 and 63.5% above the Retail - Defensive industry median of 24.08. Sprouts Farmers Market's overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sprouts Farmers Market (FRA:1FA), the current Gross Margin % is 39.38% 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 (FRA:1FA) Overvalued in 2026?
Based on GuruFocus' analysis, Sprouts Farmers Market stock appears to be undervalued.
The current stock price of €73.86 is trading 8.9% below its estimated GF Value™ of €81.08.
GuruFocus considers Sprouts Farmers Market to be Fairly Valued.
Key valuation signals for FRA:1FA:
Gross Margin %: 39.38% (near median its 10-year median of 36.45)
GF Value™: €81.08 vs. price of €73.86 (8.9% below fair value)
Industry Position: 63.5% above the Retail - Defensive median (#49 of 303)
No single metric tells the full story. See the FRA:1FA 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.
88GF Score
Get the complete analysis for FRA:1FA
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:1FA has been successfully added to your 
