J Sainsbury plc (GB:SBRY)
LSE:SBRY
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J Sainsbury plc
(LSE:SBRY)
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Rating:60Neutral
Price Target:
324.00 p
▼(-7.88% Downside)
Action:DowngradedDate:04/25/26
The score is driven primarily by mid-range financial strength (steady sales, improving but still thin margins, and consistent cash generation tempered by leverage). The earnings call adds support through positive guidance, market share gains, and shareholder returns, while technical signals are largely neutral and valuation is only moderately supportive due to a relatively elevated P/E for the sector.
Positive Factors
Free cash flow generation
Consistent positive operating and free cash flow (~£1.18B in latest year) provides durable funding for investments, dividends and buybacks. This strengthens financial flexibility for strategic initiatives and shareholder returns even if profits compress, supporting long-term capital allocation.
Negative Factors
High leverage
Meaningful leverage (debt ≈ equity) limits financial flexibility for a low‑margin retailer, raising refinancing and interest‑rate vulnerability. High leverage constrains ability to absorb shocks, pursue M&A or sustain buybacks without pressuring credit metrics if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistent positive operating and free cash flow (~£1.18B in latest year) provides durable funding for investments, dividends and buybacks. This strengthens financial flexibility for strategic initiatives and shareholder returns even if profits compress, supporting long-term capital allocation.
Read all positive factors
J Sainsbury plc (SBRY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.00B
Dividend Yield4.02%
Average Volume (3M)6.05M
Price to Earnings (P/E)9.0
Beta (1Y)0.83
Revenue Growth2.54%
EPS Growth12.99%
CountryUK
Employees148,498
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.17
Shares Outstanding2,269,876,500
10 Day Avg. Volume7,012,525
30 Day Avg. Volume6,047,660
Financial Highlights & Ratios
PEG Ratio1.49
Price to Book (P/B)1.29
Price to Sales (P/S)0.24
P/FCF Ratio6.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£350.56Price Target Upside-0.33% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.24
Revenue Forecast (FY)£34.87B
J Sainsbury plc Business Overview & Revenue Model
Company Description
J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom and the Republic of Ireland. It operates through three segments: Retail - Foo...
How the Company Makes Money
Sainsbury primarily makes money by selling products to customers across its grocery and general merchandise channels, generating revenue at the point of sale in-store and through online ordering for home delivery or click-and-collect.
Key revenue...
J Sainsbury plc Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in volume growth, investment in value and quality, and strategic gains in Argos and financial services. However, challenges remain with regulatory cost impacts and the cautious discretionary spending environment for Argos.Positive Updates
Strong Volume Growth
Sainsbury's achieved consistent volume growth and market share gains, marking their highest H1 market share in 5 years.
Negative Updates
Impact of Regulatory Costs
Higher National Insurance contributions and an EPR charge increased costs, impacting profit leverage despite volume growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Volume Growth
Sainsbury's achieved consistent volume growth and market share gains, marking their highest H1 market share in 5 years.
Read all positive updates
Company Guidance
In the call, Sainsbury's highlighted several key metrics and strategic initiatives that underscored its performance and future outlook. The company achieved a 5.2% sales growth in Sainsbury's and a 2.3% increase in Argos sales in the first half, leading to a total retail sales growth of 4.8% excluding fuel. Despite facing significant cost pressures, including higher National Insurance contributions and an EPR charge, Sainsbury's maintained a strong competitive position, with a retail underlying operating profit of GBP 504 million, slightly down year-on-year. The company also reported an 18% growth in Taste the Difference fresh sales and noted its highest H1 market share in five years. Additionally, Sainsbury's achieved a significant improvement in customer value perception, being the only grocer to improve year-on-year despite ongoing inflationary pressures. The company plans to return more than GBP 800 million to shareholders this year through dividends and buybacks, reflecting robust cash generation and a focus on enhancing shareholder returns. Looking ahead, Sainsbury's expects to generate a retail underlying operating profit of more than GBP 1 billion for the full year, driven by sustained grocery volume growth and strategic investments in value, quality, and service.J Sainsbury plc Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
54
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 33.65B | 32.81B | 32.70B | 31.49B | 29.89B |
| Gross Profit | 2.07B | 2.30B | 2.34B | 2.32B | 2.21B |
| EBITDA | 2.13B | 1.57B | 1.79B | 1.84B | 2.40B |
| Net Income | 384.00M | 242.00M | 137.00M | 207.00M | 677.00M |
Balance Sheet | |||||
| Total Assets | 18.94B | 24.65B | 25.06B | 26.39B | 27.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 727.00M | 2.00B | 1.81B | 1.02B |
| Total Debt | 6.60B | 6.61B | 6.55B | 7.14B | 7.38B |
| Total Liabilities | 12.79B | 18.00B | 18.19B | 19.13B | 18.73B |
| Stockholders Equity | 6.15B | 6.65B | 6.87B | 7.25B | 8.42B |
Cash Flow | |||||
| Free Cash Flow | 1.18B | 2.08B | 400.00M | 1.66B | 202.00M |
| Operating Cash Flow | 1.80B | 2.69B | 1.97B | 2.39B | 896.00M |
| Investing Cash Flow | -1.53B | -787.00M | -1.01B | -725.00M | -651.00M |
| Financing Cash Flow | -1.42B | -1.12B | -282.00M | -960.00M | -1.02B |
J Sainsbury plc Technical Analysis
Positive
351.70
Price Trends
344.95
Positive
332.76
Positive
317.65
Positive
Market Momentum
2.98
Negative
59.93
Neutral
61.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SBRY, the sentiment is Positive. The current price of 351.7 is above the 20-day moving average (MA) of 341.93, above the 50-day MA of 344.95, and above the 200-day MA of 317.65, indicating a bullish trend. The MACD of 2.98 indicates Negative momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 61.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SBRY.
J Sainsbury plc Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £2.81B | 8.36 | 14.71% | 2.06% | 6.96% | 28.47% | |
73 Outperform | £29.62B | 17.50 | 16.05% | 3.25% | 5.43% | 15.99% | |
68 Neutral | £1.52B | 5.67 | 20.47% | 3.34% | 6.79% | -20.45% | |
66 Neutral | £1.75B | 12.40 | 34.04% | 17.38% | 1.74% | -23.72% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | £7.00B | 9.02 | 6.12% | 4.02% | 2.54% | 12.99% | |
52 Neutral | £1.64B | -1.68 | 24.47% | ― | ― | ― |
* Consumer Defensive Sector Average
GB:SBRY
J Sainsbury plc
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J Sainsbury plc Corporate Events
Regulatory Filings and Compliance
Sainsbury Executive Buys Shares Under Company Incentive Plan
Positive
May 8, 2026
J Sainsbury plc disclosed that Chief Technology, Marketing and Data Officer Mark Given acquired 43 ordinary shares through the company’s Share Incentive Plan at a price of £3.1930 per share. The purchase, conducted on 7 May 2026 via the...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Sainsbury’s Cancels 3.66 Million Shares in Latest Buyback Round
Positive
May 8, 2026
J Sainsbury plc has repurchased 3.66 million ordinary shares between 1 and 7 May 2026 under its existing share buyback programme, at volume-weighted average prices ranging from about 320p to 329p. The company plans to cancel these shares, effectiv...
Business Operations and StrategyStock Buyback
Sainsbury Steps Up Buybacks with May Share Repurchases
Positive
May 8, 2026
J Sainsbury plc has repurchased a total of around 3.66 million ordinary shares between 1 and 7 May 2026 as part of its ongoing share buyback programme, with prices ranging in the low- to mid-320 pence area. The company plans to cancel these shares...
Regulatory Filings and Compliance
Sainsbury Executive Exercises and Sells Shares Under Staff Option Scheme
Neutral
May 1, 2026
J Sainsbury plc reported that Graham Biggart, Managing Director of Argos and Chief Strategy Officer, has exercised options over 2,931 ordinary shares under the company’s 1980 Savings-Related Share Option Scheme at an exercise price of £...
Business Operations and StrategyRegulatory Filings and Compliance
Sainsbury Updates Share Capital and Voting Rights Following Sharesave Issuance
Neutral
May 1, 2026
J Sainsbury plc has increased its issued ordinary share capital by 996,446 shares between 1 April and 30 April 2026 through its Sharesave Plan, a savings-related employee share option scheme. These new shares, which are fully fungible with existin...
Business Operations and StrategyStock Buyback
Sainsbury’s Buys Back and Cancels 4.37 Million Shares
Positive
May 1, 2026
J Sainsbury plc has repurchased a total of 4.37 million ordinary shares between 24 and 30 April 2026 through Shore Capital Stockbrokers, at volume-weighted average prices ranging from about 327p to 346p per share, as part of its ongoing share buyb...
Executive/Board ChangesRegulatory Filings and Compliance
Sainsbury’s Executives Exercise Long-Term Incentive Share Awards and Sell Stock to Cover Taxes
Neutral
Apr 29, 2026
J Sainsbury plc has reported that several directors and senior managers exercised and received share awards under its 2016 Long Term Incentive Plan, following the full vesting of Leaders Share Awards and a performance LTIP linked to meeting three-...
Business Operations and StrategyFinancial Disclosures
Sainsbury’s Schedules Online Briefing on Preliminary Annual Results
Positive
Apr 27, 2026
J Sainsbury plc will host a live online presentation for existing and potential shareholders on 30 April 2026 via the Investor Meet Company platform. The session, led by senior investor relations executives, will summarise the company’s prel...
Regulatory Filings and Compliance
Sainsbury Non-Executive Director Increases Shareholding
Positive
Apr 24, 2026
J Sainsbury plc has disclosed that non-executive director and PDMR Katie Bickerstaffe purchased 4,297 ordinary shares in the company on 24 April 2026 at a price of £3.473 per share. Following this transaction, Bickerstaffe’s total holdi...
Business Operations and StrategyStock Buyback
Sainsbury Launches £300 Million Share Buyback to Cut Share Capital
Positive
Apr 24, 2026
J Sainsbury plc has launched a share buyback programme of up to £300 million to be completed by the end of its current financial year, 27 February 2027. The move reflects management’s focus on capital returns and will reduce the company...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Sainsbury’s lifts sales and cash returns as grocery outperforms market
Positive
Apr 23, 2026
J Sainsbury reported full-year retail sales excluding fuel of £30bn, up 4.3%, with grocery sales rising 5.2% and volume growth ahead of the market for the sixth consecutive year. The company maintained its value-led strategy through Aldi Pric...
Regulatory Filings and Compliance
Sainsbury Executive Buys Shares Under Company Incentive Plan
Neutral
Apr 10, 2026
J Sainsbury plc disclosed that Chief Technology, Marketing and Data Officer Mark Given acquired 40 ordinary shares in the company on 9 April 2026 through participation in its Share Incentive Plan. The shares were bought at £3.518 each on the ...
Regulatory Filings and Compliance
Sainsbury Updates Share Capital and Voting Rights After Sharesave Issuance
Neutral
Apr 1, 2026
J Sainsbury has increased its issued ordinary share capital by 10,498,377 shares during March 2026 to satisfy employee awards under its Sharesave savings-related share option scheme. Following this issue, the company’s total ordinary share c...
Other
Sainsbury Executive Buys Shares Through Company Incentive Plan
Neutral
Mar 13, 2026
J Sainsbury plc disclosed that Mark Given, its Chief Technology, Marketing and Data Officer, acquired 40 ordinary shares in the company on 12 March 2026 through participation in its Share Incentive Plan. The shares were purchased at a price of ...
Business Operations and StrategyDelistings and Listing Changes
Sainsbury Seeks Listing of 4 Million New Shares for Employee Option Scheme
Neutral
Mar 5, 2026
J Sainsbury plc has applied for the admission of 4,000,000 new ordinary shares to trading on the main market of the London Stock Exchange. The shares, expected to be admitted on 9 March 2026, are reserved under a block listing and will be issued a...
Regulatory Filings and Compliance
Sainsbury Updates Share Capital and Voting Rights After Sharesave Issuance
Neutral
Mar 2, 2026
J Sainsbury plc has increased its issued share capital by 69,033 ordinary shares between 31 January and 27 February 2026 under its Sharesave Plan, a savings-related share option scheme for employees. This brings the company’s total issued or...
Regulatory Filings and Compliance
Sainsbury Executive Buys Shares Under Incentive Plan
Neutral
Feb 13, 2026
J Sainsbury plc disclosed that Chief Technology, Marketing and Data Officer Mark Given acquired 40 ordinary shares through the company’s Share Incentive Plan at £3.462 per share. The transaction, conducted on 12 February 2026 on the Lon...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.