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Sprouts Farmers MarketFRA:1FA -5.77%87 Return-on-Tangible-Equity is 79.52% as of Mar. 2026, which is 17% above its 10-year median of 68.09. GuruFocus rates FRA:1FA with a GF Score™ of 87/100 and a GF Value™ of €85.70 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 301 Retail - Defensive companies, Sprouts Farmers Market ranks better than 87.71% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sprouts Farmers Market's annualized net income for the quarter that ended in Mar. 2026 was €566 Mil. Sprouts Farmers Market's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €712 Mil. Therefore, Sprouts Farmers Market's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 79.52%.
The historical rank and industry rank for Sprouts Farmers Market's Return-on-Tangible-Equity or its related term are showing as below:
FRA:1FA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 49.24 Med: 68.09 Max: 546.15
Current: 63.95
During the past 13 years, Sprouts Farmers Market's highest Return-on-Tangible-Equity was 546.15%. The lowest was 49.24%. And the median was 68.09%.
FRA:1FA's Return-on-Tangible-Equity is ranked better than 87.71% of 301
companies
in the Retail - Defensive industry
Industry Median: 10.96
vs FRA:1FA: 63.95
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sprouts Farmers Market Return-on-Tangible-Equity Related Terms
Sprouts Farmers Market Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sprouts Farmers Market's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Return-on-Tangible-Equity 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 the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 79.52% mean?
Sprouts Farmers Market (FRA:1FA) has a Return-on-Tangible-Equity of 79.52% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sprouts Farmers Market and its competitors. This is 17% above median its historical median of 68.09. Over the past decade, Sprouts Farmers Market's Return-on-Tangible-Equity has ranged from 49.24 to 546.15. According to the industry distribution chart, Sprouts Farmers Market ranks #37 out of 301 companies in the Retail - Defensive industry, placing it in the top 12.3%.
Is Sprouts Farmers Market's Return-on-Tangible-Equity too high?
Sprouts Farmers Market's current Return-on-Tangible-Equity of 79.52% is 17% above median its 10-year median of 68.09. Over the past 10 years, this metric has ranged from a low of 49.24 to a high of 546.15. The Retail - Defensive industry median Return-on-Tangible-Equity is 10.96. Sprouts Farmers Market's value of 79.52% is 625.5% above this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #37 out of 301 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 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sprouts Farmers Market's Return-on-Tangible-Equity compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #37 out of 301 companies for Return-on-Tangible-Equity. This places Sprouts Farmers Market in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.96. Sprouts Farmers Market's value of 79.52% is 625.5% above this benchmark. Historically, Sprouts Farmers Market's own Return-on-Tangible-Equity has ranged from 49.24 to 546.15 over the past decade. While the company's 10-year median is 68.09 vs. the industry median of 10.96, 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 Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 10.96, based on 301 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current Return-on-Tangible-Equity of 79.52% is 625.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 10.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Return-on-Tangible-Equity is 79.52%, which is 17% above median its own 10-year median of 68.09. 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 Modestly Undervalued. The stock's GF Value™ is €85.70, compared to a current price of €65.71 — trading 23.3% below its estimated fair value. The current Return-on-Tangible-Equity is 79.52%, which is 17% above median its 10-year median of 68.09 and 625.5% above the Retail - Defensive industry median of 10.96. Sprouts Farmers Market's overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sprouts Farmers Market (FRA:1FA), the current Return-on-Tangible-Equity is 79.52% 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 €65.71 is trading 23.3% below its estimated GF Value™ of €85.70.
GuruFocus considers Sprouts Farmers Market to be Modestly Undervalued.
Key valuation signals for FRA:1FA:
Return-on-Tangible-Equity: 79.52% (17% above median its 10-year median of 68.09)
GF Value™: €85.70 vs. price of €65.71 (23.3% below fair value)
Industry Position: 625.5% above the Retail - Defensive median (#37 of 301)
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.
87GF Score
Get the complete analysis for FRA:1FA
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