Sprouts Farmers MarketFRA:1FA +1.27%88 Operating Margin % is 9.29% as of Mar. 2026, which is 65% above its 10-year median of 5.63. GuruFocus rates FRA:1FA with a GF Score™ of 88/100 and a GF Value™ of €82.46 (Fairly Valued). The stock has 1 warning sign investors should review. Among 310 Retail - Defensive companies, Sprouts Farmers Market ranks better than 81.94% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Sprouts Farmers Market Operating Margin % Historical Data
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The historical data trend for Sprouts Farmers Market's Operating 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: Operating Margin % Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sprouts Farmers Market's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (FRA:1FA) has a Operating Margin % of 9.29% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sprouts Farmers Market and its competitors. This is 65% above median its historical median of 5.63. Over the past decade, Sprouts Farmers Market's Operating Margin % has ranged from 3.99 to 7.86. According to the industry distribution chart, Sprouts Farmers Market ranks #56 out of 310 companies in the Retail - Defensive industry, placing it in the top 18.1%.
Is Sprouts Farmers Market's Operating Margin % too high?
Sprouts Farmers Market's current Operating Margin % of 9.29% is 65% above median its 10-year median of 5.63. Over the past 10 years, this metric has ranged from a low of 3.99 to a high of 7.86. The Retail - Defensive industry median Operating Margin % is 3.28. Sprouts Farmers Market's value of 9.29% is 183.7% above this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #56 out of 310 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 Operating Margin % compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #56 out of 310 companies for Operating Margin %. This places Sprouts Farmers Market in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.28. Sprouts Farmers Market's value of 9.29% is 183.7% above this benchmark. Historically, Sprouts Farmers Market's own Operating Margin % has ranged from 3.99 to 7.86 over the past decade. While the company's 10-year median is 5.63 vs. the industry median of 3.28, 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 Operating Margin % for a Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current Operating Margin % of 9.29% is 183.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Operating Margin % is 9.29%, which is 65% above median its own 10-year median of 5.63. 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 €82.46, compared to a current price of €75.09 — trading 8.9% below its estimated fair value. The current Operating Margin % is 9.29%, which is 65% above median its 10-year median of 5.63 and 183.7% above the Retail - Defensive industry median of 3.28. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sprouts Farmers Market (FRA:1FA), the current Operating Margin % is 9.29% 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 €75.09 is trading 8.9% below its estimated GF Value™ of €82.46.
GuruFocus considers Sprouts Farmers Market to be Fairly Valued.
Key valuation signals for FRA:1FA:
Operating Margin %: 9.29% (65% above median its 10-year median of 5.63)
GF Value™: €82.46 vs. price of €75.09 (8.9% below fair value)
Industry Position: 183.7% above the Retail - Defensive median (#56 of 310)
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
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