Sprouts Farmers MarketFRA:1FA +6.08%88 Pretax Margin % is 9.25% as of Mar. 2026, which is 79% above its 10-year median of 5.16. GuruFocus rates FRA:1FA with a GF Score™ of 88/100 and a GF Value™ of €82.93 (Fairly Valued). The stock has 1 warning sign investors should review. Among 308 Retail - Defensive companies, Sprouts Farmers Market ranks better than 81.82% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Sprouts Farmers Market Pretax Margin % Related Terms
Sprouts Farmers Market Pretax Margin % Historical Data
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The historical data trend for Sprouts Farmers Market's Pretax 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: Pretax Margin % Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Pretax 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.
Sprouts Farmers Market (FRA:1FA) has a Pretax Margin % of 9.25% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sprouts Farmers Market and its competitors. This is 79% above median its historical median of 5.16. Over the past decade, Sprouts Farmers Market's Pretax Margin % has ranged from 3.48 to 7.82. According to the industry distribution chart, Sprouts Farmers Market ranks #56 out of 308 companies in the Retail - Defensive industry, placing it in the top 18.2%.
Is Sprouts Farmers Market's Pretax Margin % too high?
Sprouts Farmers Market's current Pretax Margin % of 9.25% is 79% above median its 10-year median of 5.16. Over the past 10 years, this metric has ranged from a low of 3.48 to a high of 7.82. The Retail - Defensive industry median Pretax Margin % is 3.02. Sprouts Farmers Market's value of 9.25% is 206.8% above this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #56 out of 308 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 Pretax Margin % compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #56 out of 308 companies for Pretax Margin %. This places Sprouts Farmers Market in the top 18% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.02. Sprouts Farmers Market's value of 9.25% is 206.8% above this benchmark. Historically, Sprouts Farmers Market's own Pretax Margin % has ranged from 3.48 to 7.82 over the past decade. While the company's 10-year median is 5.16 vs. the industry median of 3.02, 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 Pretax Margin % for a Retail - Defensive company?
The median Pretax Margin % among Retail - Defensive companies is 3.02, based on 308 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current Pretax Margin % of 9.25% is 206.8% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median Pretax Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Pretax Margin % is 9.25%, which is 79% above median its own 10-year median of 5.16. 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 €82.93, compared to a current price of €78.35 — trading 5.5% below its estimated fair value. The current Pretax Margin % is 9.25%, which is 79% above median its 10-year median of 5.16 and 206.8% above the Retail - Defensive industry median of 3.02. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Sprouts Farmers Market (FRA:1FA), the current Pretax Margin % is 9.25% 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 €78.35 is trading 5.5% below its estimated GF Value™ of €82.93.
GuruFocus considers Sprouts Farmers Market to be Fairly Valued.
Key valuation signals for FRA:1FA:
Pretax Margin %: 9.25% (79% above median its 10-year median of 5.16)
GF Value™: €82.93 vs. price of €78.35 (5.5% below fair value)
Industry Position: 206.8% above the Retail - Defensive median (#56 of 308)
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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