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Is this Large Market Cap Stock target price reasonable for Sprouts Farmers Market, Inc. (NASDAQ:SFM)?

The company in question is, Sprouts Farmers Market, Inc. (NASDAQ:SFM) currently with a stock price of 21.73 (-0.09% today). The market cap for Sprouts Farmers Market, Inc. is 3252.71, and is in the sector Services, and Grocery Stores industry. The target price for Sprouts Farmers Market, Inc. is 24.31. Currently Sprouts Farmers Market, Inc. is trading with a P/E of 23.31, and a forward P/E of 22.4. Average volume for Sprouts Farmers Market, Inc. is 2653.77 and so far today it is 979875.

Performance in the last year for Sprouts Farmers Market, Inc. has been -0.32%. For EPS growth, Sprouts Farmers Market, Inc. has seen a growth of 18.60%, and is looking to grow in the next year to 14.64%. More long term stats show that EPS growth has been 61.40% over the last five years and could be 13.71% for the next five years. Sprouts Farmers Market, Inc. has seen sales growth quarter over quarter at 14.30%, with EPS growth quarter over quarter at 22.30%. The 20-day simple moving average is 1.04%, with the 200-day simple moving average coming to -10.86%.

Since the IPO date for Sprouts Farmers Market, Inc. on the 08/01/2013, Sprouts Farmers Market, Inc. has seen performance year to date to be -18.20%. With Sprouts Farmers Market, Inc. trading at 21.73, the dividend yield is *TBA, and the EPS is 0.93.

So could Sprouts Farmers Market, Inc., be undervalued? Well as said before P/E is 23.31. The PEG is 1.7, P/S is 0.84 and the P/B is at 4.09. The P/cash is 41.49, with P/free cash flow at 26.06.

Sprouts Farmers Market, Inc. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 0.5. This is with long term debt/equity at 0.35, and total debt/equity at 0.36.

In terms of margins, Sprouts Farmers Market, Inc. has a gross margin of 29.60%, an operating margin of 6.30% and a profit margin of 3.70%.Payout ratio for Sprouts Farmers Market, Inc. is 0.00%. Return on assets come to 10.00% with return on investment coming to 13.10%.

Insider ownership for Sprouts Farmers Market, Inc., is at 0.30% and institutional ownership comes to 95.90%. Outstanding shares are at 149.55. While shares float is 140.08. The float short is currently 10.98%, and short ratio is 5.8.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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