Home Sectors Consumer Defensive Stock Analysis: Sprouts Farmers Market (NASDAQ: SFM)

Stock Analysis: Sprouts Farmers Market (NASDAQ: SFM)

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Sprouts Farmers Market trades as part of the retail defensive industry and trades as part of the consumer defensive sector. The company CEO is James L. Nielsen / Bradley Lukow. Sprouts Farmers Market Inc is US based company which operates as a specialty retailer of natural and organic food. It offers products including fresh produce, bulk foods, vitamins and supplements, bakery, and body care and natural household items.

Previous Intraday Trading Performance:

The SFM stock showed a previous change of 0.25% with an open at 20.33 and a close of 20.18. It reached an intraday high of 20.49 and a low of 20.10.

SeekingAlpha:  Grocery Outlet IPO: A Buy Below 4.3x Adjusted EBITDA

Liquidity:

The stock has a market cap of $2.4b with 118.0m shares outstanding, of which the float is 116.7m shares. Trading volume reached 1,064,819 shares compared to its average volume of 1,677,439 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Sprouts Farmers Market shares returned -0.54% and in the past 30 trading days it returned -2.89%. Over three months, it changed -12.72%. In one year it has changed -7.26% and within that year its 52-week high was 29.67 and its 52-week low was 19.72. SFM stock is 2.33% above its 52 Week Low.

Our calculations show a 200 day moving average of 24.26 and a 50 day moving average of 21.33. Currently SFM stock is trading -16.83% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Grocery Outlet IPO: A Buy Below 4.3x Adjusted EBITDA

Earnings:

The last annual fiscal EPS for the company was reported at 1.21 that ended on 31st of December 2018, which according to the previous close, that is a PE of 16.68. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.41. The TTM EPS is 1.28, which comes to a TTM PE of 15.77. Historically, the PE high was 148.50 and the PE low was 15.77. SFM stock has set a new PE low record!

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/02/2019): 0.46
4thQtr of 2018 (Reported on 02/21/2019): 0.10
3rdQtr of 2018 (Reported on 11/01/2018): 0.29
2ndQtr of 2018 (Reported on 08/02/2018): 0.32
1stQtr of 2018 (Reported on 05/03/2018): 0.50

Base on our calculations, the intrinsic value per share is 27.81, which means it is possibly undervalued and has a margin of safety of 27.45%.

Indicators to Watch:

Based on the latest filings, there is 1.00% of insider ownership.

The current calculated beta is 0.50.

SeekingAlpha:  Seadrill Partners Announces Reverse Split

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 24.61%, return on assets is 6.99%, profit margin is 2.78%, price-to-sales is 0.45 and price-to-book is 4.27.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 2  :Past Performance Score
 1  :Financial Strength Score
 2  :Future Growth Score
 0  :Dividend Score
 1  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.