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Sprouts Farmers Market has the Financial Strength Rank of 7.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Sprouts Farmers Market's Interest Coverage for the quarter that ended in Jun. 2026 was 404.94.
Sprouts Farmers Market's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.23.
As of today, Sprouts Farmers Market's Altman Z-Score is 4.50.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Sprouts Farmers Market has the Financial Strength Rank of 7.
Sprouts Farmers Market Financial Strength Related Terms
SFM vs ACI, WMK, IMKTA: Financial Strength Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Sprouts Farmers Market has a Z-score of 4.50, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 4.5 is strong.
* 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 (SFM) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sprouts Farmers Market and its competitors. This is 17% above median its historical median of 6.00. Over the past decade, Sprouts Farmers Market's Financial Strength has ranged from 5.00 to 8.00.
Is Sprouts Farmers Market's Financial Strength too high?
Sprouts Farmers Market's current Financial Strength of 7 is 17% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.00. 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 Financial Strength compare to ACI and WMK?
Sprouts Farmers Market's Financial Strength of 7 can be compared against companies in the Retail - Defensive industry. Historically, Sprouts Farmers Market's own Financial Strength has ranged from 5.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Retail - Defensive company?
A good Financial Strength depends on the Retail - Defensive industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sprouts Farmers Market and its competitors. Sprouts Farmers Market's current Financial Strength is 7, which is 17% above median its own 10-year median of 6.00. 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 $85.93 — trading 11.2% below its estimated fair value. The current Financial Strength is 7, which is 17% above median its 10-year median of 6.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Sprouts Farmers Market (SFM), the current Financial Strength is 7 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 $85.93 is trading 11.2% below its estimated GF Value™ of $96.73.
GuruFocus considers Sprouts Farmers Market to be Modestly Undervalued.
Key valuation signals for SFM:
Financial Strength: 7 (17% above median its 10-year median of 6.00)
GF Value™: $96.73 vs. price of $85.93 (11.2% 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
Get the complete analysis for SFM
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