Sprouts Farmers MarketFRA:1FA -4.50%88 ROE % is 46.46% as of Mar. 2026, which is 80% above its 10-year median of 25.80. GuruFocus rates FRA:1FA with a GF Score™ of 88/100 and a GF Value™ of €82.86 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 304 Retail - Defensive companies, Sprouts Farmers Market ranks better than 94.08% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Grocery Stores subindustry, Sprouts Farmers Market's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's ROE % distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Sprouts Farmers Market (FRA:1FA) has a ROE % of 46.46% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sprouts Farmers Market and its competitors. This is 80% above median its historical median of 25.80. Over the past decade, Sprouts Farmers Market's ROE % has ranged from 16.62 to 39.29. According to the industry distribution chart, Sprouts Farmers Market ranks #18 out of 304 companies in the Retail - Defensive industry, placing it in the top 5.9%.
Is Sprouts Farmers Market's ROE % too high?
Sprouts Farmers Market's current ROE % of 46.46% is 80% above median its 10-year median of 25.80. Over the past 10 years, this metric has ranged from a low of 16.62 to a high of 39.29. The Retail - Defensive industry median ROE % is 8.56. Sprouts Farmers Market's value of 46.46% is 442.8% above this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #18 out of 304 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 Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sprouts Farmers Market's ROE % compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #18 out of 304 companies for ROE %. This places Sprouts Farmers Market in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 8.56. Sprouts Farmers Market's value of 46.46% is 442.8% above this benchmark. Historically, Sprouts Farmers Market's own ROE % has ranged from 16.62 to 39.29 over the past decade. While the company's 10-year median is 25.80 vs. the industry median of 8.56, 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 ROE % for a Retail - Defensive company?
The median ROE % among Retail - Defensive companies is 8.56, based on 304 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current ROE % of 46.46% is 442.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median ROE % is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current ROE % is 46.46%, which is 80% above median its own 10-year median of 25.80. 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 €82.86, compared to a current price of €71.71 — trading 13.5% below its estimated fair value. The current ROE % is 46.46%, which is 80% above median its 10-year median of 25.80 and 442.8% above the Retail - Defensive industry median of 8.56. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Sprouts Farmers Market (FRA:1FA), the current ROE % is 46.46% 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 €71.71 is trading 13.5% below its estimated GF Value™ of €82.86.
GuruFocus considers Sprouts Farmers Market to be Modestly Undervalued.
Key valuation signals for FRA:1FA:
ROE %: 46.46% (80% above median its 10-year median of 25.80)
GF Value™: €82.86 vs. price of €71.71 (13.5% below fair value)
Industry Position: 442.8% above the Retail - Defensive median (#18 of 304)
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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