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Jonas 🕊️
@TheAccountant89
3Année·

Just in time for closing time, I'd like to show you one of my favorite stocks in the midcap segment: Sprouts Farmers Market!


Sprouts is a US organic supermarket chain. The sustainable idea hits the spot. They are the third largest organic supermarket chain in the world.


Key figures overview:

P/E 20: 10.75

P/E ratio 21e: 12.6

Gross margin: 36.78

Net operating margin (NOPAT): 5.5% and thus second-best margin of all main competitors (see NOPAT overview)

ROCE: 24

Leverage ratio < 4 x EBIT (3.3)


Why Sprouts? Firstly, the very favorable valuation, and secondly, the good market position compared to the competition. Sprouts is in a growing market and meets the ravages of time.


Why also interesting in the short term? Consumer goods stocks with some pricing power can take advantage of slightly higher inflation to push through higher prices to sustainably increase their margins.


What do you think? Who has been shopping in a Sprouts Market? I would be very interested in the experience 😊


Disclaimer: I am invested myself.

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15 Commentaires
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Lorena@Lorena
3Année
Thanks for the summary! A very nice title. I was actually not aware of it. When did you get into it?
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Jonas 🕊️@TheAccountant89
3Année
@Lorena Thanks 😊 I think that must have been 2/3 months ago. Price was at 21.60.
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Lorena@Lorena
3Année
@TheAccountant89 then good luck already! :)
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Jonas 🕊️@TheAccountant89
3Année
@Lorena Thank you 😊
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Nils@unchartednils
3Année
Nice presentation with numbers and sources! Sales growth really stands out, compared to other American retailers. The high debt seems to be the only shortcoming.
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Jonas 🕊️@TheAccountant89
3Année
@Florian_Homm Thank you for your opinion. Yes, debt could be lower. Although they are still reasonably in the green.
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Lorena@Lorena
3Année
@MarcoInvestment take a look at it, a nice little DD from Jonas! :)
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Jonas 🕊️@TheAccountant89
3Année
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Cassius@DS0711
3Année
@TheAccountant89 Interesting article and source merci.
Not my subject area as I think organic is nonsense and makes 1000 times more sense regionally, but you can think outside the box 👍
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Jonas 🕊️@TheAccountant89
3Année
@DS0711 Sprouts is not called "Sprouts FARMERS Markets" for nothing. Among other things, it means:

"Sprouts opened a new distribution center in Aurora in March, and it's helping local farmers get their produce to customers as fresh and as fast as possible."

I agree, I also like to support regional products. But Sprouts does that too.

For me, organic or Demeter is also part of my shopping because everything else is sprayed with products to make it look nice. Ultimately, however, it is proven to be extremely toxic for the body. Ideally, you should have both local and organic/Demeter. For me, organic is anything but rubbish. Ideally, it should simply be available regionally.
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Jonas 🕊️@TheAccountant89
3Année
Another small addition:

I also noticed the following company:

United Natural Foods:
US9111631035

I haven't looked at them myself yet. However, they are also at home in the natural/organic segment. But the chart is a bit wilder. And as I said, I haven't looked at them yet. Maybe I'll introduce them when I get the chance 👌
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Jonas 🕊️@TheAccountant89
3Année
Update 📈
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3Année
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Jonas 🕊️@TheAccountant89
3Année
@sonnenbrille Thanks for your opinion. The problem with the chart is that there is nothing long-term yet. The 5 years don't look great, of course. However, the IPO price was simply too high at the time. In the long term, I prefer to get in now (or I already am) and take full advantage of the development that I am convinced of. I don't allow myself to be influenced much by the chart.

The train hasn't set off yet but is still at the station waiting for passengers (the ticket is still cheap 😉). But the conductor is sure to blow his whistle soon 😁
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Jonas 🕊️@TheAccountant89
3Année
@sonnenbrille btw ... nice wikifolio 👌
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