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Sprouts Farmers MarketSFM -0.23%88 Net-Net Working Capital is $-24.96 as of Jun. 2026. GuruFocus rates SFM with a GF Score™ of 88/100 and a GF Value™ of $96.73 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 79 Retail - Defensive companies, Sprouts Farmers Market ranks worse than 1265821.52% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Sprouts Farmers Market's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $-24.96.
The industry rank for Sprouts Farmers Market's Net-Net Working Capital or its related term are showing as below:
SFM's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Defensive industry.
Industry Median: 4.93 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Sprouts Farmers Market (NAS:SFM) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Sprouts Farmers Market Net-Net Working Capital Related Terms
Sprouts Farmers Market Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Sprouts Farmers Market's Net-Net Working Capital 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.
Sprouts Farmers Market Net-Net Working Capital Chart
SFM vs ACI, WMK, IMKTA: Net-Net Working Capital Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-24.96 mean?
Sprouts Farmers Market (SFM) has a Net-Net Working Capital of $-24.96 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Sprouts Farmers Market According to the industry distribution chart, Sprouts Farmers Market ranks #999999 out of 79 companies in the Retail - Defensive industry.
Is Sprouts Farmers Market's Net-Net Working Capital too high?
Sprouts Farmers Market's current Net-Net Working Capital is $-24.96. Based on the distribution chart, Sprouts Farmers Market ranks #999999 out of 79 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Sprouts Farmers Market has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sprouts Farmers Market's Net-Net Working Capital compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #999999 out of 79 companies for Net-Net Working Capital. This places Sprouts Farmers Market in the lower half of its industry. The industry median Net-Net Working Capital is 4.93. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Retail - Defensive company?
The median Net-Net Working Capital among Retail - Defensive companies is 4.93, based on 79 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Sprouts Farmers Market For the Retail - Defensive industry, the median Net-Net Working Capital is 4.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Net-Net Working Capital is $-24.96. 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 (SFM) is currently considered Modestly Undervalued. The stock's GF Value™ is $96.73, compared to a current price of $85.95 — trading 11.1% below its estimated fair value. The current Net-Net Working Capital is $-24.96. 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 Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Sprouts Farmers Market (SFM), the current Net-Net Working Capital is $-24.96 as of Jun. 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 (SFM) Overvalued in 2026?
Based on GuruFocus' analysis, Sprouts Farmers Market stock appears to be undervalued.
The current stock price of $85.95 is trading 11.1% below its estimated GF Value™ of $96.73.
GuruFocus considers Sprouts Farmers Market to be Modestly Undervalued.
Key valuation signals for SFM:
Net-Net Working Capital: $-24.96
GF Value™: $96.73 vs. price of $85.95 (11.1% below fair value)
No single metric tells the full story. See the SFM 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
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