J Sainsbury plc (SBRY) AI Stock Analysis

• Market Cap: £5.49B
• Dividend Yield: 5.62%
• Average Volume (3M): 7.95M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.91
• Revenue Growth: 2.66%
• EPS Growth: 80.49%
• Country: UK
• Employees: 148,498
• Sector: Consumer Defensive
• Sector Strength: 90
• Industry: Grocery Stores
• EPS (TTM): 0.06
• Shares Outstanding: 2,343,855,500
• 10 Day Avg. Volume: 7,021,179
• 30 Day Avg. Volume: 7,948,781
• PEG Ratio: 0.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.17
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 291.75p
• Price Target Upside: 23.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

J Sainsbury's stock displays strengths such as stable revenue growth and a strategic focus on expanding its grocery market share. However, challenges like declining profit margins, reduced free cash flow, and operational issues in segments like Argos weigh on its performance. The high P/E ratio raises valuation concerns, though the attractive dividend yield provides some offset. The oversold technical indicators suggest potential for a rebound, yet the overall sentiment remains cautious.

J Sainsbury plc Business Overview & Revenue Model

Company Description

J Sainsbury plc, commonly known as Sainsbury's, is a leading UK-based retail company primarily operating in the grocery sector. It is the second largest chain of supermarkets in the United Kingdom, offering a wide range of products including food, clothing, and general merchandise. In addition to its core supermarket operations, Sainsbury's also has a banking subsidiary, Sainsbury's Bank, and owns Argos, a catalog retailer that provides various consumer goods and electronics.

How the Company Makes Money

Sainsbury's generates revenue primarily through its supermarket operations, which account for the majority of its income by selling groceries and household items. The company operates both large-format stores and smaller convenience stores, catering to a diverse customer base. In addition to physical retail locations, Sainsbury's has a strong online presence, enabling customers to shop for groceries and other products via its e-commerce platform. Argos, as a subsidiary, contributes to the company's revenue by selling a wide array of consumer goods, both online and in-store. Sainsbury's Bank adds another dimension to its revenue streams, offering financial services such as loans, credit cards, and insurance products. Strategic partnerships with suppliers and ongoing investments in technology and supply chain efficiency further support Sainsbury's revenue generation efforts.

J Sainsbury plc Financial Statement Overview

Summary

J Sainsbury plc shows steady revenue growth with sound operational cash generation. However, declining profit margins and a substantial drop in free cash flow present challenges. Leverage is under control, but returns to equity holders have diminished. The company must focus on improving profitability and cash flow resilience to strengthen its financial standing.

Income Statement

The income statement reflects stable revenue growth with a 3.86% increase in 2024 compared to the previous year. However, the gross profit margin is modest at 7.14%, and the net profit margin has declined to 0.42% from 0.66% last year, indicating pressure on profitability. EBIT and EBITDA margins are 1.63% and 5.48%, respectively, showing operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet shows a relatively stable financial position with a debt-to-equity ratio of 0.95, indicating a manageable level of leverage. The equity ratio stands at 27.40%, reflecting a balanced capital structure. However, the return on equity has decreased to 1.99%, suggesting reduced profitability for shareholders.

Cash Flow

Cash flow analysis indicates a significant decline in free cash flow by 75.84% in 2024, raising concerns about the company's ability to generate cash. The operating cash flow to net income ratio is high at 14.34, which suggests strong operational cash generation relative to net income, but the drop in free cash flow highlights potential challenges in capital management.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
32.70B	31.49B	29.89B	29.05B	28.99B
	Gross Profit
2.34B	2.32B	2.21B	2.04B	2.19B
	EBIT
532.00M	999.00M	982.00M	691.00M	1.06B
	EBITDA
1.79B	1.84B	2.40B	1.44B	1.90B
	Net Income Common Stockholders
137.00M	207.00M	677.00M	-208.00M	152.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.00B	1.81B	1.02B	1.67B	1.08B
	Total Assets
25.06B	26.39B	27.15B	25.47B	28.17B
	Total Debt
6.55B	7.14B	7.38B	6.94B	7.42B
	Net Debt
4.56B	5.83B	6.56B	5.36B	6.42B
	Total Liabilities
18.19B	19.13B	18.73B	18.77B	20.64B
	Stockholders Equity
6.87B	7.25B	8.42B	6.70B	7.53B
Cash Flow		Free Cash Flow
400.00M	1.66B	202.00M	1.50B	1.05B
	Operating Cash Flow
1.97B	2.39B	896.00M	2.10B	1.69B
	Investing Cash Flow
-1.01B	-725.00M	-651.00M	-575.00M	-571.00M
	Financing Cash Flow
-282.00M	-960.00M	-1.02B	-1.31B	-1.07B

J Sainsbury plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 236.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SBRY, the sentiment is Negative. The current price of 236.6 is below the 20-day moving average (MA) of 237.67, below the 50-day MA of 249.24, and below the 200-day MA of 264.24, indicating a bearish trend. The MACD of -5.45 indicates Positive momentum. The RSI at 32.53 is Neutral, neither overbought nor oversold. The STOCH value of 44.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SBRY.

J Sainsbury plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARD	76 Outperform	£278.42M	6.75	13.65%	7.12%	7.75%	-21.78%
MKS	72 Outperform	£7.35B	14.39	17.19%	0.84%	6.87%	22.36%
TSCO	71 Outperform	£22.77B	20.21	10.18%	3.82%	―	―
Sector *	62 Neutral	$19.87B	13.65	-16.14%	3.29%	1.16%	3.90%
SBRY	60 Neutral	£5.49B	40.07	2.25%	5.62%	2.66%	80.49%
WINE	60 Neutral	£54.17M	―	-20.11%	―	-15.67%	45.17%
OCDO	54 Neutral	$2.34B	―	-14.70%	―	14.31%	55.08%

J Sainsbury plc Corporate Events

J Sainsbury plc Updates on Share Capital and Voting Rights

J Sainsbury plc announced that as of March 31, 2025, its issued ordinary share capital comprises 2,343,855,567 shares, with no shares held in Treasury. This figure represents the total number of voting rights, which shareholders can use to determine their notification requirements under the Disclosure Guidance and Transparency Rules.

BlackRock Increases Stake in J Sainsbury plc

J Sainsbury plc has announced a change in its major holdings, with BlackRock, Inc. increasing its voting rights in the company to 7.49% as of March 27, 2025. This adjustment in holdings reflects BlackRock’s strategic investment decisions and could influence Sainsbury’s market positioning and stakeholder dynamics.

BlackRock Adjusts Stake in J Sainsbury plc

J Sainsbury plc has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of March 17, 2025, BlackRock holds 7.11% of the total voting rights, an increase from the previous 6.92%. This adjustment in holdings reflects BlackRock’s strategic investment decisions and could influence Sainsbury’s shareholder dynamics and decision-making processes.

J Sainsbury’s Executive Acquires Shares Under Incentive Plan

J Sainsbury plc announced that Mark Given, the Chief Marketing, Data and Sustainability Officer, acquired 45 ordinary shares through the company’s Share Incentive Plan at a price of £2.5372 each. This transaction, conducted on the London Stock Exchange, highlights the ongoing engagement of senior management in the company’s equity plans, potentially aligning their interests with those of shareholders and reflecting confidence in the company’s future performance.

BlackRock Increases Stake in J Sainsbury plc

J Sainsbury plc, a UK-based company, has announced a change in its major holdings due to an acquisition or disposal of voting rights by BlackRock, Inc. The notification indicates that BlackRock’s total voting rights in Sainsbury have increased slightly to 6.92%, up from a previous 6.89%. This change in holdings could impact Sainsbury’s shareholder dynamics and influence its strategic decisions, reflecting BlackRock’s continued interest in the company’s operations.

Sainsbury’s Announces Current Share Capital and Voting Rights

J Sainsbury plc announced that as of 28 February 2025, its issued ordinary share capital consists of 2,339,424,088 ordinary shares, with no shares held in Treasury. This figure represents the total number of voting rights in the company, which shareholders can use to determine their notification obligations under the Disclosure Guidance and Transparency Rules.

Sainsbury’s Completes Sale of Argos Financial Services Card Portfolio

J Sainsbury plc has completed the sale of its Argos Financial Services store card portfolio to NewDay Group, following the latter’s acquisition of the necessary financing and antitrust approvals. This transaction is expected to enable Sainsbury’s Bank to return at least £250 million in excess capital to Sainsbury’s, which the company plans to distribute to its shareholders. The transition of legal title and servicing responsibilities to NewDay is anticipated to occur in Q1 2026, with no immediate changes required for existing customers.

Sainsbury’s Executive Acquires Shares Under Incentive Plan

J Sainsbury plc announced that Mark Given, the Chief Marketing, Data, and Sustainability Officer, acquired 43 ordinary shares through the company’s Share Incentive Plan at a price of £2.6485 each on the London Stock Exchange. This transaction is part of the company’s ongoing effort to align managerial interests with shareholder value, as outlined by the UK Market Abuse Regulation. It reflects Sainsbury’s commitment to enhancing stakeholder engagement and corporate governance practices.

Sainsbury’s Executive Sells Shares Amidst Regulatory Compliance

J Sainsbury plc announced that Clodagh Moriarty, the company’s Chief Retail & Technology Officer, sold 142,474 ordinary shares at £2.640 per share. This transaction, completed on February 11, 2025, is part of the company’s compliance with the UK Market Abuse Regulation, and was conducted on the London Stock Exchange. Such notifications are significant as they reflect potential shifts in managerial confidence or strategy and may influence stakeholder perceptions.

J Sainsbury Confirms Share Capital and Voting Rights

J Sainsbury plc announced that as of 31 January 2025, its issued ordinary share capital consisted of 2,339,151,338 shares, with no shares held in Treasury. This figure defines the total number of voting rights, providing a basis for shareholders to determine their notification requirements under relevant rules.

Sainsbury’s Announces Final Terms for £550M Note Issuance

J Sainsbury plc has published the final terms for two significant notes under its £5 billion Euro Medium Term Note Programme. The company issued £250 million at 5.125% due in 2030 and £300 million at 5.625% due in 2035, indicating a strategic move to secure financing and potentially strengthen its financial position in the retail market.

J Sainsbury’s CMO Acquires Shares through Incentive Plan

J Sainsbury plc announced that its Chief Marketing Officer, Mark Given, acquired 45 ordinary shares through the company’s Share Incentive Plan, purchasing them at a price of £2.569 each. This transaction, carried out on the London Stock Exchange, aligns with the UK Market Abuse Regulation guidelines, emphasizing transparency in managerial dealings within the company.

Sainsbury’s £5 Billion EMTN Programme Approved

J Sainsbury plc announced the approval and availability of the prospectus for its £5 billion Euro Medium Term Note (EMTN) Programme. The programme’s approval by the Financial Conduct Authority marks a significant step in Sainsbury’s financial strategy, potentially impacting its market operations and stakeholder engagement.

Sainsbury’s Celebrates Record Christmas Sales and Announces Pay Raise

J Sainsbury plc reported its fifth consecutive year of winning grocery market share during the Christmas period, driven by its strong customer service, value, and product quality. The company achieved record sales and customer satisfaction scores, with significant growth in its premium ‘Taste the Difference’ range and party food sales. In response to cost inflation, Sainsbury’s announced a pay raise for its hourly-paid employees, reinforcing its commitment to rewarding its workforce. The company expects to meet its full-year profit guidance, supported by grocery volume growth, strong Nectar sales, and cost-saving measures. Sainsbury’s continues to invest in technology and customer service enhancements to support its growth and market positioning.

Sainsbury’s Major Holdings Update: BlackRock Adjusts Stake

J Sainsbury plc, a leading UK-based retailer, has announced a change in its major holdings as BlackRock, Inc., a significant shareholder, has adjusted its voting rights in the company. As of January 6, 2025, BlackRock’s total voting rights in Sainsbury decreased from 7.27% to 6.89%, which may impact the company’s shareholder dynamics and influence. This change reflects a shift in the financial instruments and shares BlackRock holds in Sainsbury, indicating possible strategic adjustments by the investment firm.

Pzena Investment Management Boosts Stake in J Sainsbury plc

Pzena Investment Management, LLC, a New York-based investment firm, has increased its voting rights in J Sainsbury plc to 5.05%, as of January 3, 2025. This development indicates a potential shift in stakeholder influence within the company, which could affect its strategic decisions and market positioning.

J Sainsbury Confirms Voting Rights and Share Capital Structure

J Sainsbury plc announced that as of December 31, 2024, its issued ordinary share capital consisted of 2,339,036,204 ordinary shares, with no shares held in Treasury. This figure represents the total number of voting rights, which shareholders can use for any necessary notifications under the Disclosure Guidance and Transparency Rules.