Sprouts Farmers Market, Inc. SFM

Competitive advantage analysis · consumer-defensive

Corporate Default
Overall moat score
72/100
Moderate

About Sprouts Farmers Market, Inc.

Sprouts Farmers Market, Inc., together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products in the United States. The company offers healthy grocery stores; and lifestyle-friendly ingredients such as organic, plant-based, keto, paleo, non-GMO, and gluten-free. The company also offers perishable product categories, including produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy … Full SFM analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 100.0th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Scale Supporting Profitability Profitability at scale is strong (score 0.95), demonstrating competitive advantages.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
65

Where SFM ranks in Grocery Stores

Sprouts Farmers Market, Inc. ranks #3 of 12 scored companies in Grocery Stores by moat score — the top 25%. The widest moat in the group is Village Super Market, Inc. (VLGEA) at 81/100.

Moat scores for companies ranked near SFM in Grocery Stores
# Company Moat score Rating
1 Village Super Market, Inc. VLGEA 81/100 Strong
2 Natural Grocers by Vitamin Cott NGVC 78/100 Strong
3 Sprouts Farmers Market, Inc. SFM 72/100 Moderate
4 Kroger Company (The) KR 64/100 Moderate
5 Weis Markets, Inc. WMK 63/100 Moderate
6 Albertsons Companies, Inc. ACI 47/100 Developing
7 Ingles Markets, Incorporated IMKTA 41/100 Developing
8 Dingdong (Cayman) Limited DDL 38/100 Developing
9 Grocery Outlet Holding Corp. GO 28/100 Developing

See every General Corporate company ranked by moat score →

How SFM scores on the Corporate Default defenses

Pricing Power

Score 65 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 55 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 60 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 78 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 78 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 92 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SFM's moat

What is Sprouts Farmers Market, Inc.'s moat score?

Sprouts Farmers Market, Inc. (SFM) scores 72 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #3 of 12 scored companies in Grocery Stores, the top 25%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 11 companies in Grocery Stores. Its strongest defense is Scale & Market Position (92/100) and its weakest is Cost Advantage (55/100).

How does Sprouts Farmers Market, Inc. compare with other Grocery Stores companies?

Sprouts Farmers Market, Inc. ranks #3 of 12 scored companies in Grocery Stores by moat score. The widest moat in Grocery Stores is Village Super Market, Inc. (VLGEA) at 81/100. The companies ranked closest are Natural Grocers by Vitamin Cott (NGVC) at 78 just above it and Kroger Company (The) (KR) at 64 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 11 companies in Grocery Stores. The defenses are then weighted to produce the overall score out of 100.

Why is Sprouts Farmers Market, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Sprouts Farmers Market, Inc.?

The Corporate Default template measures 6 defenses, and SFM scores: Pricing Power (65), Cost Advantage (55), Customer Stickiness (60), Capital Efficiency (78), Resilience (78), Scale & Market Position (92). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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