SFM (Sprouts Farmers Market Inc) vs S&P 500 Comparison

SFM

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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SFM

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

SFM

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

SFM

ATD

3382

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Sprouts Farmers Market Inc
Glance View

Economic Moat

None

Market Cap

14B USD

Industry

Retail

Sprouts Farmers Market Inc., a vibrant player in the grocery retail sector, is deeply embedded in the movement towards healthy living and sustainable food consumption. Established in 2002 in Chandler, Arizona, Sprouts has grown from a small fruit stand to a significant force in natural and organic groceries across the United States. The company has capitalized on the increasing consumer demand for fresh, minimally processed food, expanding its stores across a broad geographical footprint while maintaining a focus on affordability. A trip to a Sprouts location is designed to connect the urban consumer with farm-fresh products: the aisles are brimming with produce, natural meats, and organic dairy, supported by a commitment to health-oriented customer education through in-store events and nutritional expertise. The financial engine of Sprouts is driven by its ability to curate an assortment of niche products while still maintaining competitive pricing. Its strategic store layouts maximize efficient space usage, house a variety of private-label brands, and feature bulk sections that encourage shoppers to buy only what they need. This model not only appeals to the eco-conscious but also enhances profit margins by reducing costs associated with packaging and distribution. Additionally, Sprouts leverages a direct-to-consumer approach through community involvement and digital platforms, catering to the modern shopper's preference for convenient, on-demand information and shopping experiences. This strategic blend of operational efficiency, customer engagement, and a strong brand ethos focused on health and sustainability paves the way for its ongoing success in the retail market.

View SFM Analysis

SFM Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US		Kroger Co NYSE:KR	Add
CA		Loblaw Companies Ltd TSX:L	Add
JP		Seven & i Holdings Co Ltd TSE:3382	Add
ZA	P	Pick N Pay Stores Ltd JSE:PIK	Add
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IN		Avenue Supermarts Ltd NSE:DMART	Add
AU		Woolworths Group Ltd ASX:WOW	Add

ZA	S	Shoprite Holdings Ltd JSE:SHP	Select
CA		Alimentation Couche-Tard Inc TSX:ATD	Select
US		Kroger Co NYSE:KR	Select
CA		Loblaw Companies Ltd TSX:L	Select
JP		Seven & i Holdings Co Ltd TSE:3382	Select
ZA	P	Pick N Pay Stores Ltd JSE:PIK	Select
NL		Koninklijke Ahold Delhaize NV AEX:AD	Select
UK		Tesco PLC LSE:TSCO	Select
IN		Avenue Supermarts Ltd NSE:DMART	Select
AU		Woolworths Group Ltd ASX:WOW	Select

ZA	S	Shoprite Holdings Ltd JSE:SHP	Add
CA		Alimentation Couche-Tard Inc TSX:ATD	Add
US		Kroger Co NYSE:KR	Add
CA		Loblaw Companies Ltd TSX:L	Add
JP		Seven & i Holdings Co Ltd TSE:3382	Add
ZA	P	Pick N Pay Stores Ltd JSE:PIK	Add
NL		Koninklijke Ahold Delhaize NV AEX:AD	Add
UK		Tesco PLC LSE:TSCO	Add
IN		Avenue Supermarts Ltd NSE:DMART	Add
AU		Woolworths Group Ltd ASX:WOW	Add

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SFM

vs

S&P 500

Stocks Performance
SFM vs S&P 500

Performance Gap
SFM vs S&P 500

Performance By Year
SFM vs S&P 500

Competitors Performance
Sprouts Farmers Market Inc vs Peers

Sprouts Farmers Market Inc
Glance View

Company

Help

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SFM vs S&P 500

Stocks Performance SFM vs S&P 500

Performance Gap SFM vs S&P 500

Performance By Year SFM vs S&P 500

Competitors Performance Sprouts Farmers Market Inc vs Peers

Sprouts Farmers Market Inc Glance View

Company

Help

Tools

Stocks

SFM

vs

S&P 500

Stocks Performance
SFM vs S&P 500

Performance Gap
SFM vs S&P 500

Performance By Year
SFM vs S&P 500

Competitors Performance
Sprouts Farmers Market Inc vs Peers

Sprouts Farmers Market Inc
Glance View