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Sprouts Farmers MarketBSP:S2FM34 68 Altman Z-Score is 3.39 as of Jul. 24, 2026, which is 18% below its 10-year median of 4.13. GuruFocus rates BSP:S2FM34 with a GF Score™ of 68/100 and a GF Value™ of R$180.39 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 309 Retail - Defensive companies, Sprouts Farmers Market ranks better than 66.02% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 4.24 is strong.
Sprouts Farmers Market has a Altman Z-Score of 3.39, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Sprouts Farmers Market's Altman Z-Score or its related term are showing as below:
BSP:S2FM34'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.79 Med: 4.13 Max: 6.95
Current: 4.24
During the past 13 years, Sprouts Farmers Market's highest Altman Z-Score was 6.95. The lowest was 2.79. And the median was 4.13.
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, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Sprouts Farmers Market Altman Z-Score Related Terms
Sprouts Farmers Market Altman Z-Score Historical Data
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The historical data trend for Sprouts Farmers Market's Altman Z-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.
BSP:S2FM34 vs ACI, WMK, IMKTA: Altman Z-Score Comparison
For the Grocery Stores subindustry, Sprouts Farmers Market's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Z-Score vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's Altman Z-Score falls into.
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.
* 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 Z-Score when X4 or X5 value is 0.
Sprouts Farmers Market (BSP:S2FM34) has a Altman Z-Score of 3.39 as of Jul. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Sprouts Farmers Market and its competitors. This is 18% below median its historical median of 4.13. Over the past decade, Sprouts Farmers Market's Altman Z-Score has ranged from 2.79 to 6.95. According to the industry distribution chart, Sprouts Farmers Market ranks #105 out of 309 companies in the Retail - Defensive industry, placing it in the top 34%.
Is Sprouts Farmers Market's Altman Z-Score too high?
Sprouts Farmers Market's current Altman Z-Score of 3.39 is 18% below median its 10-year median of 4.13. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 6.95. The Retail - Defensive industry median Altman Z-Score is 3.52. Sprouts Farmers Market's value of 3.39 is 3.7% below this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #105 out of 309 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Sprouts Farmers Market has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sprouts Farmers Market's Altman Z-Score compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #105 out of 309 companies for Altman Z-Score. This puts Sprouts Farmers Market in the upper half of its industry. The industry median Altman Z-Score is 3.52. Sprouts Farmers Market's value of 3.39 is 3.7% below this benchmark. Historically, Sprouts Farmers Market's own Altman Z-Score has ranged from 2.79 to 6.95 over the past decade. While the company's 10-year median is 4.13 vs. the industry median of 3.52, 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 Z-Score for a Retail - Defensive company?
The median Altman Z-Score among Retail - Defensive companies is 3.52, based on 309 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current Altman Z-Score of 3.39 is 3.7% 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 Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median Altman Z-Score is 3.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current Altman Z-Score is 3.39, which is 18% below median its own 10-year median of 4.13. 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 (BSP:S2FM34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$180.39, compared to a current price of R$138.41 — trading 23.3% below its estimated fair value. The current Altman Z-Score is 3.39, which is 18% below median its 10-year median of 4.13 and 3.7% below the Retail - Defensive industry median of 3.52. Sprouts Farmers Market's overall GF Score™ is 68/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Sprouts Farmers Market (BSP:S2FM34), the current Altman Z-Score is 3.39 as of Jul. 24, 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 (BSP:S2FM34) Overvalued in 2026?
Based on GuruFocus' analysis, Sprouts Farmers Market stock appears to be undervalued.
The current stock price of R$138.41 is trading 23.3% below its estimated GF Value™ of R$180.39.
GuruFocus considers Sprouts Farmers Market to be Modestly Undervalued.
Key valuation signals for BSP:S2FM34:
Altman Z-Score: 3.39 (18% below median its 10-year median of 4.13)
GF Value™: R$180.39 vs. price of R$138.41 (23.3% below fair value)
Industry Position: 3.7% below the Retail - Defensive median (#105 of 309)
No single metric tells the full story. See the BSP:S2FM34 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.
68GF Score
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