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What Is Sprouts Worth?

Sprouts (NASDAQ:SFM) is a natural and organic grocer serving the southwestern states. With its headquarters in Phoenix, Sprouts has been expanding outward from Arizona and is now located in ten states. As mapped in a recent investor presentation (albeit missing the company's new store in Atlanta):

(click to enlarge)

(Ex. 99.1, Slide 11, in the 5/21/2014 8-K; source: Filings Reader.)

In this slide and other slides we are given some projections for the company:

  • Potential store count of 1,200 up from 182 today
  • Assumed new store growth of 12% per year
  • "Long-Term Net Earnings Growth Target of 20%+"

Let's be clear, if Sprouts can reach those goals, the company may continue to sell at its 75%...

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