Sprouts Farmers Market (FRA:1FA) Altman Z2-Score: 1.94 (As of Jul. 04, 2026) — Near Median


FRA:1FA Sprouts Farmers Market Inc FRA:1FA
88 GF Score
Price €78.36
GF Value €82.97
Valuation Fairly Valued
! 1 Warning Sign
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What is Sprouts Farmers Market Altman Z2-Score?

Sprouts Farmers Market FRA:1FA +0.01% 88 Altman Z2-Score is 1.94 as of Jul. 04, 2026, which is 8% above its 10-year median of 1.80. GuruFocus rates FRA:1FA with a GF Score™ of 88/100 and a GF Value™ of €82.97 (Fairly Valued). The stock has 1 warning sign investors should review. Among 305 Retail - Defensive companies, Sprouts Farmers Market ranks worse than 60% on this metric.

Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.

Sprouts Farmers Market has a Altman Z2-Score of 1.94, indicating it is in Grey Zones. This implies that Sprouts Farmers Market is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Sprouts Farmers Market's Altman Z2-Score or its related term are showing as below:

FRA:1FA' s Altman Z2-Score Range Over the Past 10 Years
Min: 0.46   Med: 1.8   Max: 3.11
Current: 1.94

During the past 13 years, Sprouts Farmers Market's highest Altman Z2-Score was 3.11. The lowest was 0.46. And the median was 1.80.


Sprouts Farmers Market  (FRA:1FA) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Sprouts Farmers Market Altman Z2-Score Related Terms


Sprouts Farmers Market Altman Z2-Score Historical Data

* Premium members only.

The historical data trend for Sprouts Farmers Market's Altman Z2-Score 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.

Sprouts Farmers Market Altman Z2-Score Chart

Sprouts Farmers Market Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.69 1.99 1.75 2.00 1.99

Sprouts Farmers Market Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Altman Z2-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.95 2.16 2.26 1.99 1.94

FRA:1FA vs ACI, WMK, IMKTA: Altman Z2-Score Comparison

For the Grocery Stores subindustry, Sprouts Farmers Market's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Sprouts Farmers Market's Altman Z2-Score falls into.


FRA:1FA
88GF Score
Sprouts Farmers Market Inc FRA:1FA
Altman Z2-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Sprouts Farmers Market Altman Z2-Score Calculation

Altman 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.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Sprouts Farmers Market's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*-0.0153+3.26*0.1367+6.72*0.1582+1.05*0.5059
=1.94

* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2026:
Total Assets was €3,693 Mil.
Total Current Assets was €668 Mil.
Total Current Liabilities was €725 Mil.
Retained Earnings was €505 Mil.
Pre-Tax Income was 186.352 + 105.6 + 134.691 + 155.875 = €583 Mil.
Interest Expense was -0.395 + -0.392 + -0.461 + -0.332 = €-2 Mil.
Total Liabilities was €2,452 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(668.034 - 724.695)/3693.009
=-0.0153

X2=Retained Earnings/Total Assets
=504.93/3693.009
=0.1367

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(582.518 - -1.58)/3693.009
=0.1582

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(1240.618 - 0)/2452.391
=0.5059

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Sprouts Farmers Market has a Altman Z2-Score of 1.94 indicating it is in Grey Zones.

Frequently Asked Questions Learn more about Altman Z2-Score →
What does a Altman Z2-Score of 1.94 mean?
Sprouts Farmers Market (FRA:1FA) has a Altman Z2-Score of 1.94 as of Jul. 04, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Sprouts Farmers Market and its competitors. This is near median its historical median of 1.80. Over the past decade, Sprouts Farmers Market's Altman Z2-Score has ranged from 0.46 to 3.11. According to the industry distribution chart, Sprouts Farmers Market ranks #183 out of 305 companies in the Retail - Defensive industry, placing it in the top 60%.
Is Sprouts Farmers Market's Altman Z2-Score too high?
Sprouts Farmers Market's current Altman Z2-Score of 1.94 is near median its 10-year median of 1.80. Over the past 10 years, this metric has ranged from a low of 0.46 to a high of 3.11. The Retail - Defensive industry median Altman Z2-Score is 2.65. Sprouts Farmers Market's value of 1.94 is 26.8% below this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #183 out of 305 companies in the Retail - Defensive industry, which is below the industry midpoint. 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 Altman Z2-Score compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #183 out of 305 companies for Altman Z2-Score. This places Sprouts Farmers Market in the lower half of its industry. The industry median Altman Z2-Score is 2.65. Sprouts Farmers Market's value of 1.94 is 26.8% below this benchmark. Historically, Sprouts Farmers Market's own Altman Z2-Score has ranged from 0.46 to 3.11 over the past decade. While the company's 10-year median is 1.80 vs. the industry median of 2.65, Sprouts Farmers Market has consistently been below 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 Altman Z2-Score for a Retail - Defensive company?
The median Altman Z2-Score among Retail - Defensive companies is 2.65, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current Altman Z2-Score of 1.94 is 26.8% below 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median Altman Z2-Score is 2.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Altman Z2-Score is 1.94, which is near median its own 10-year median of 1.80. 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 Fairly Valued. The stock's GF Value™ is €82.97, compared to a current price of €78.36 — trading 5.6% below its estimated fair value. The current Altman Z2-Score is 1.94, which is near median its 10-year median of 1.80 and 26.8% below the Retail - Defensive industry median of 2.65. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Sprouts Farmers Market (FRA:1FA), the current Altman Z2-Score is 1.94 as of Jul. 04, 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 €78.36 is trading 5.6% below its estimated GF Value™ of €82.97. GuruFocus considers Sprouts Farmers Market to be Fairly Valued.

Key valuation signals for FRA:1FA:

  • Altman Z2-Score: 1.94 (near median its 10-year median of 1.80)
  • GF Value™: €82.97 vs. price of €78.36 (5.6% below fair value)
  • GF Score™: 88/100 with 1 warning sign
  • Industry Position: 26.8% below the Retail - Defensive median (#183 of 305)

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 Business Description

Address 5455 East High Street, Suite 111, Phoenix, AZ, USA, 85054
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 FRA:1FA

Altman Z2-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€78.36
Price
€82.97
GF Value