Stock fact sheet · data as of
Sprouts Farmers Market, Inc. (SFM): fair value, margin of safety and Wheel Score
Consumer Defensive · Grocery Stores · United States · High Growth
Is SFM undervalued?
Sprouts Farmers Market, Inc. (SFM) closed at 64.65 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 117.83, which puts the price 45% below it. 5 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 8 models disagree widely: Lynch gives 40.72 while GLS Growth gives 294.53. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files SFM under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for SFM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 103.90 | +61% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 43.84 | -32% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 124.10 | +92% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 40.72 | -37% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 294.53 | +356% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 131.71 | +104% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 144.39 | +123% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 59.45 | -8% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -20.87 | -132% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 88.60 | +37% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health SFM scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 9.4 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 15.6%, ROE 37.3%, ROA 12.6% - with debt at 1.39 times equity and a free-cash-flow yield of 5.9%.
Sprouts Farmers Market, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Perishables 57%, Non Perishables 43% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded Congressional buy was on 16 Jul 2026.
| Piotroski F-score | 7 / 9 | ROIC | 15.6% |
|---|---|---|---|
| GLS Moat | 9.4 / 10 | ROE | 37.3% |
| Debt / equity | 1.39 | ROA | 12.6% |
| Free-cash-flow yield | 5.9% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 93: Prime
SFM scores 93 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (14/15), the option premium on offer (20/20) and how easily the stock trades (19/20).
Implied volatility is 53% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 72,008 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 1.7M shares a day on a market cap of $6.0B, with a beta of 0.67 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 45% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 14 / 15 | moat 9.4/10 | |
| Premium | 20 / 20 | implied volatility 53% | |
| Stability | 19 / 20 | 1.7M shares/day, $6.0B cap, beta 0.67 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Sprouts Farmers Market, Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Grocery Stores
The 12 companies below are the closest to Sprouts Farmers Market, Inc. by market cap within the Grocery Stores industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ACI Albertsons Companies, Inc. | 13.03 | 46.98 | +72% | 45Weak | $6.3B |
| WMK Weis Markets, Inc. | 75.22 | 42.10 | -79% | 56Fair | $1.9B |
| IMKTA Ingles Markets, Incorporated | 86.78 | 101.34 | +14% | 65Good | $1.6B |
| GO Grocery Outlet Holding Corp. | 13.06 | 6.75 | -93% | 45Weak | $1.3B |
| KR The Kroger Co. | 62.71 | 42.02 | -49% | 62Fair | $37.0B |
| NGVC Natural Grocers by Vitamin Cottage, Inc. | 30.60 | 31.11 | +2% | 59Fair | $705M |
| YSWY Yesway, Inc. | 21.51 | 666.02 | +97% | 39No options | $671M |
| VLGEA Village Super Market, Inc. | 44.85 | 63.08 | +29% | 39No options | $664M |
| DNUT Krispy Kreme, Inc. | 3.10 | 4.01 | +23% | 45Weak | $538M |
| DDL Dingdong (Cayman) Limited | 2.14 | 21.20 | +90% | 69Good | $468M |
| VHUB VenHub Global, Inc. Common Stock | 0.3694 | - | - | 21No options | $36M |
| MSS Maison Solutions Inc. Class A Common Stock | 1.38 | - | - | 30No options | $1M |
⚖ Compare SFM with 7 of them All Consumer Defensive stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SFM
Is SFM undervalued right now?
By the GLS models, yes: at 64.65 the stock is 45% below the average fair value of 117.83 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of SFM and what does it mean?
SFM scores 93 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SFM?
117.83 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Sprouts Farmers Market, Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SFM have listed options, and how liquid are they?
Yes. The nightly snapshot found 344 listed contracts with 72,008 open interest across all expiries and implied volatility of 53% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.