Sprouts Farmers Net Income vs. Operating Margin
| SFM Stock | USD 75.74 2.01 2.73% |
Net Income | First Reported 2011-12-31 | Previous Quarter 120.1 M | Current Value 89.8 M | Quarterly Volatility 35.8 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.3715 |
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For Sprouts Farmers profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sprouts Farmers to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sprouts Farmers Market utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sprouts Farmers's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sprouts Farmers Market over time as well as its relative position and ranking within its peers.
Sprouts Farmers' Revenue Breakdown by Earning Segment
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Sprouts Farmers Revenue Breakdown by Earning Segment
By analyzing Sprouts Farmers' earnings estimates, investors can diagnose different trends across Sprouts Farmers' analyst sentiment over time as well as compare current estimates against different timeframes.
Will Consumer Staples Distribution & Retail sector continue expanding? Could Sprouts diversify its offerings? Factors like these will boost the valuation of Sprouts Farmers. If investors know Sprouts will grow in the future, the company's valuation will be higher. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Sprouts Farmers data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.184 | Earnings Share 5.14 | Revenue Per Share | Quarterly Revenue Growth 0.076 | Return On Assets |
Investors evaluate Sprouts Farmers Market using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Sprouts Farmers' intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Sprouts Farmers' market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Sprouts Farmers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Sprouts Farmers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Sprouts Farmers' market price signifies the transaction level at which participants voluntarily complete trades.
Sprouts Farmers Market Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sprouts Farmers's current stock value. Our valuation model uses many indicators to compare Sprouts Farmers value to that of its competitors to determine the firm's financial worth. Sprouts Farmers Market is rated below average in net income category among its peers. It is rated below average in operating margin category among its peers . The ratio of Net Income to Operating Margin for Sprouts Farmers Market is about 9,139,092,496 . At this time, Sprouts Farmers' Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Sprouts Farmers by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Sprouts Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Sprouts Farmers |
| = | 523.67 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Sprouts Farmers |
| = | 0.06 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Sprouts Operating Margin Comparison
Sprouts Farmers is currently under evaluation in operating margin category among its peers.
Sprouts Farmers Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sprouts Farmers, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sprouts Farmers will eventually generate negative long term returns. The profitability progress is the general direction of Sprouts Farmers' change in net profit over the period of time. It can combine multiple indicators of Sprouts Farmers, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 691.1 M | 725.7 M | |
| Income Before Tax | 688.8 M | 723.2 M | |
| Total Other Income Expense Net | -2.4 M | -2.5 M | |
| Net Income | 523.7 M | 549.9 M | |
| Income Tax Expense | 165.1 M | 173.4 M | |
| Net Income Applicable To Common Shares | 300.3 M | 169.1 M | |
| Net Income From Continuing Ops | 437.7 M | 459.6 M | |
| Non Operating Income Net Other | 368 K | 386.4 K | |
| Interest Income | 7.2 M | 8.7 M | |
| Net Interest Income | 2.5 M | 2.7 M | |
| Change To Netincome | 18.5 M | 19.1 M | |
| Net Income Per Share | 2.53 | 2.65 | |
| Income Quality | 1.80 | 2.16 | |
| Net Income Per E B T | 0.75 | 0.55 |
Sprouts Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sprouts Farmers. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sprouts Farmers position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sprouts Farmers' important profitability drivers and their relationship over time.
Sprouts Farmers Earnings per Share Projection vs Actual
Use Sprouts Farmers in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sprouts Farmers position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sprouts Farmers will appreciate offsetting losses from the drop in the long position's value.Sprouts Farmers Pair Trading
Sprouts Farmers Market Pair Trading Analysis
The ability to find closely correlated positions to Sprouts Farmers could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sprouts Farmers when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sprouts Farmers - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sprouts Farmers Market to buy it.
The correlation of Sprouts Farmers is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sprouts Farmers moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sprouts Farmers Market moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sprouts Farmers can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Sprouts Farmers position
In addition to having Sprouts Farmers in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Theme ETFs Thematic Idea Now
Theme ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Theme ETFs theme has 484 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Theme ETFs Theme or any other thematic opportunities.
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To fully project Sprouts Farmers' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sprouts Farmers Market at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sprouts Farmers' income statement, its balance sheet, and the statement of cash flows.