Is Sprouts Farmers Market, Inc. (SFM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 24.9% / 30% | 3.3% / 30% | 1.2% / 30% | 0.06% / 5% | ✓ HALAL |
| DJIM | 24.9% / 33% | 3.3% / 33% | 1.2% / 33% | 0.06% / 5% | ✓ HALAL |
| MSCI | 46.7% / 33% | 6.2% / 33% | 2.3% / 33% | 0.06% / 5% | ✗ NOT HALAL |
| S&P | 24.9% / 33% | 3.3% / 33% | 1.2% / 33% | 0.06% / 5% | ✓ HALAL |
| FTSE | 46.7% / 33% | 6.2% / 33% | 2.3% / 50% | 0.06% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 39.0% | |
| Operating Margin | 5.7% | |
| Net Margin | 5.9% | |
| Return on Equity (ROE) | 38.4% | |
| Return on Assets (ROA) | 11.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $716M |
| Free Cash Flow | $468M |
| Total Debt | $1.9B |
| Debt-to-Equity | 138.5 |
| Current Ratio | 0.9 |
| Total Assets | $4.2B |
Price & Trading
| Last Close | $77.27 |
| 50-Day MA | $73.77 |
| 200-Day MA | $107.84 |
| Avg Volume | 2.9M |
| Beta | 0.7 |
|
52-Week Range
$64.75
| |
About Sprouts Farmers Market, Inc. (SFM)
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 alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. It sells its products under the Sprouts brand. The company was founded in 1943 and is headquartered in Phoenix, Arizona.
Purification Calculator
As a halal stock with 0.06% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Sprouts Farmers Market, Inc. (SFM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Sprouts Farmers Market, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Sprouts Farmers Market, Inc.'s debt ratio?
Sprouts Farmers Market, Inc.'s debt ratio is 24.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 46.7%.
Does Sprouts Farmers Market, Inc. require dividend purification?
Yes, Sprouts Farmers Market, Inc. has an impermissible income ratio of 0.06%, which means 0.06% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Sprouts Farmers Market, Inc.'s key financial metrics?
Sprouts Farmers Market, Inc. has a market capitalization of $7.5B, trailing P/E ratio of 14.6, and revenue of $8.8B. The company maintains a gross margin of 39.0% and a net margin of 5.9%. Return on equity stands at 38.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.