Sprouts Farmers Market, Inc.

SFM: Is Sprouts Farmers Market, Inc. Halal?

Sprouts Farmers Market, Inc.

NASDAQConsumer DefensiveUS

$84.09

-2.86%

Market Cap: 7.9B

Compliance Status

Doubtful

Screened on Jul 15, 2026 · AAOIFI Standard 21

C+

Fair

59Score

Is Sprouts Farmers Market, Inc. (SFM) halal? Doubtful. Based on AAOIFI screening, Sprouts Farmers Market, Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 59/100 (Grade: C+).

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

27.4% of 30.0% limit

What this means for you

You may own SFM, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purify 3% of your income from SFM

That is about $3.00 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About Sprouts Farmers Market, Inc.

Sprouts Farmers Market, Inc. is a U.S.-based retailer that specializes in providing fresh, natural, and organic food options. The company's comprehensive product lineup includes both temperature-sensitive and shelf-stable goods. Among its perishable offerings are a wide selection of fresh produce, various meats, seafood, deli items, baked goods, floral arrangements, dairy products, and plant-based dairy substitutes. For non-perishable needs, Sprouts stocks traditional groceries, vitamins and nutritional supplements, bulk items, frozen foods, alcoholic beverages like beer and wine, and natural health and personal care products. As of January 2, 2022, Sprouts Farmers Market operated 374 stores throughout 23 states. The company was established in 2002 and its corporate headquarters are located in Phoenix, Arizona.

Sector: Consumer Defensive · Industry: Grocery Stores

Why This Stock Is Doubtful

  • Debt is 27.4% of market cap, only 2.6 points below the 30% AAOIFI limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 15, 2026

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)
3.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

  • Grocery Stores: estimated 3.0% peripheral exposure (AAOIFI industry average)
  • Contains reference to: beer
  • Contains reference to: wine

Use the Purification Calculator to compute exactly how much of your dividend income to donate.

Compliance History

  1. Doubtfulnow

    since Jul 2026

  2. Halal

    until the change above

  3. Doubtful

    until the change above

  4. Halal

    until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR
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Frequently Asked Questions

Is Sprouts Farmers Market, Inc. (SFM) halal to invest in?
Sprouts Farmers Market, Inc. (SFM) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.
Why did Sprouts Farmers Market, Inc. get a C+ compliance rating?
Sprouts Farmers Market, Inc. (SFM) received a grade of C+ (Fair) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 27.4% (limit 30%); interest-bearing deposits of 3.6% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Sprouts Farmers Market, Inc.'s Shariah verdict?
Sprouts Farmers Market, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Sprouts Farmers Market, Inc. re-screened for Shariah compliance?
Sprouts Farmers Market, Inc. (SFM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 15, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.