Sprouts Farmers Market (MIL:1SFM) Operating Income: €585 Mil (TTM As of Mar. 2026)

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MIL:1SFM Sprouts Farmers Market Inc MIL:1SFM
71 GF Score
Price €65.62
GF Value €85.03
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Sprouts Farmers Market Operating Income?

Sprouts Farmers Market MIL:1SFM 71 Operating Income is €585 Mil as of Mar. 2026. 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.

Sprouts Farmers Market's Operating Income for the three months ended in Mar. 2026 was €187 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €585 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sprouts Farmers Market's Operating Income for the three months ended in Mar. 2026 was €187 Mil. Sprouts Farmers Market's Revenue for the three months ended in Mar. 2026 was €2,015 Mil. Therefore, Sprouts Farmers Market's Operating Margin % for the quarter that ended in Mar. 2026 was 9.29%.

Good Sign:

Sprouts Farmers Market Inc operating margin is expanding. Margin expansion is usually a good sign.

Sprouts Farmers Market's 5-Year average Growth Rate for Operating Margin % was 5.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sprouts Farmers Market's annualized ROC % for the quarter that ended in Mar. 2026 was 18.28%. Sprouts Farmers Market's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 30.90%.

Sprouts Farmers Market  (MIL:1SFM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Sprouts Farmers Market's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=748.98 * ( 1 - 24% )/( (3039.927 + 3187.528)/ 2 )
=569.2248/3113.7275
=18.28 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3551.486 - 563.567 - ( 219.719 - max(0, 743.666 - 691.658+219.719))
=3039.927

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3693.009 - 562.142 - ( 218.119 - max(0, 724.695 - 668.034+218.119))
=3187.528

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Sprouts Farmers Market's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=746.988/( ( (2338.327 + max(-145.238, 0)) + (2495.78 + max(-112.227, 0)) )/ 2 )
=746.988/( ( 2338.327 + 2495.78 )/ 2 )
=746.988/2417.0535
=30.90 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(55.699 + 364.739 + 24.839) - (563.567 + 0 + 26.948)
=-145.238

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(54.766 + 362.589 + 32.56) - (562.142 + 0 + 0)
=-112.227

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Sprouts Farmers Market's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=187.245/2014.74
=9.29 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Sprouts Farmers Market Operating Income Related Terms

Sprouts Farmers Market Operating Income Historical Data

* Premium members only.

The historical data trend for Sprouts Farmers Market's Operating Income 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 Operating Income Chart

Sprouts Farmers Market Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 299.79 348.70 357.18 494.11 590.74

Sprouts Farmers Market Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 210.94 156.81 135.35 105.87 187.25
MIL:1SFM
71GF Score
Sprouts Farmers Market Inc MIL:1SFM
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Sprouts Farmers Market Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €585 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €585 Mil mean?
Sprouts Farmers Market (MIL:1SFM) has a Operating Income of €585 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sprouts Farmers Market and its competitors.
Is Sprouts Farmers Market's Operating Income too high?
Sprouts Farmers Market's current Operating Income is €585 Mil. 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 Operating Income compare to ACI and WMK?
Sprouts Farmers Market's Operating Income of €585 Mil can be compared against companies in the Retail - Defensive industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Defensive company?
A good Operating Income depends on the Retail - Defensive industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sprouts Farmers Market and its competitors. Sprouts Farmers Market's current Operating Income is €585 Mil. 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 Operating Income is €585 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Sprouts Farmers Market (MIL:1SFM), the current Operating Income is €585 Mil 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:

  • Operating Income: €585 Mil
  • GF Value™: €85.03 vs. price of €65.62 (22.8% below fair value)
  • GF Score™: 71/100 with 1 warning sign

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 Business Description

Address 5455 East High Street, Suite 111, Phoenix, AZ, USA, 85054
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

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€65.62
Price
€85.03
GF Value