J Sainsbury (JSAIY) AI Stock Analysis

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J Sainsbury

(OTC:JSAIY)

Rating:81Outperform

Price Target:

$18.50

▲(14.34% Upside)

J Sainsbury's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The technical analysis supports a bullish outlook, while valuation concerns slightly temper the overall score. The company's strategic expansion and cost-saving initiatives position it well for future growth, despite challenges in specific segments like Argos.

J Sainsbury (JSAIY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$9.13B

Dividend Yield4.25%

Average Volume (3M)2.25K

Price to Earnings (P/E)21.3

Beta (1Y)0.31

Revenue Growth2.28%

EPS Growth157.72%

CountryUS

Employees148,498

SectorConsumer Defensive

Sector Strength49

IndustryGrocery Stores

Share Statistics

EPS (TTM)0.66

Shares Outstanding573,039,860

10 Day Avg. Volume1,184

30 Day Avg. Volume2,245

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.29

Enterprise Value/Revenue0.36

Enterprise Value/Gross Profit5.27

Enterprise Value/Ebitda5.28

Forecast

1Y Price Target

$18.50

Price Target Upside14.34% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

J Sainsbury Business Overview & Revenue Model

Company DescriptionJ 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 Food, Retail General Merchandise and Clothing, and Financial Services. The company operates various store formats, including convenience stores and supermarkets. It is also involved in the online grocery and general merchandise operations. As of March 5, 2022, the company operated 598 supermarkets, 809 convenience stores, 728 Argos stores, and 335 collection points, as well as 3 Habitat stores. In addition, it offers financial services, such as credit cards, scorecards, and personal loans; and home, car, pet, travel, and life insurance products. The company was founded in 1869 and is headquartered in London, the United Kingdom.

How the Company Makes MoneySainsbury's generates revenue primarily through the sale of food and grocery items, which constitutes a significant portion of its earnings. The company operates a multi-channel retail strategy that includes physical stores, online shopping, and delivery services. Additionally, Sainsbury's earns income from non-food sales, including clothing and home goods through its Tu clothing range and home furnishings. The company also benefits from loyalty programs, such as the Nectar card, which encourages customer retention and repeat purchases. Furthermore, Sainsbury's has engaged in various partnerships, including collaborations with suppliers and service providers, to enhance its product offerings and customer experience, contributing to its overall profitability.

J Sainsbury Key Performance Indicators (KPIs)

Any

Sales by Segment

Sales by Segment
Reveals how different parts of the business contribute to overall revenue, highlighting strengths and potential areas for growth or improvement within the company’s operations.

Chart InsightsSainsbury's grocery sales are showing robust growth, outpacing market trends, supported by strategic investments in store expansion. However, Argos faces challenges with declining sales and profitability, compounded by reduced online traffic and weak summer performance. The company is focusing on cost savings and market-share gains, with plans to return GBP250 million to shareholders. Despite inflationary pressures, Sainsbury's aims to maintain competitive grocery volume growth, leveraging loyalty program enhancements and strategic store openings to drive future performance.

Data provided by:

Main Street Data

J Sainsbury Earnings Call Summary

Earnings Call Date:Apr 17, 2025

(Q4-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong performance with significant market-share gains, profit growth, and strategic investments in store expansion and loyalty programs. However, challenges in Argos and general merchandise, along with inflationary pressures, present headwinds that the company is addressing.

Q4-2025 Updates

Positive Updates

Record Market Share Gains

Sainsbury's achieved its biggest market-share gains in more than a decade, with an 18% increase in primary customers doing the majority of their grocery shopping at Sainsbury's.

Profit Growth

Sainsbury's reported a profit growth of over 15%, supported by an industry-leading cost-savings program with GBP349 million of savings achieved in the first year.

New Store Openings

Sainsbury's plans to open 40 new stores, marking their largest investment in store space expansion in more than a decade.

Successful Loyalty Program

The Nectar loyalty program saw increased participation with over 9,000 products now featuring Nectar Prices, and the program is driving strong customer engagement.

Improved Retail Operating Profit

Retail underlying operating profit grew by 7.2% year-on-year, driven by strong grocery volumes and cost savings.

Cash Returns to Shareholders

More than GBP500 million of cash was returned to shareholders, including a GBP200 million share buyback and planned special dividend of GBP250 million.

Negative Updates

Argos Sales Decline

Argos sales declined by 2.7% and faced a challenging year with significant headwinds, including reduced online traffic and a weak summer start.

General Merchandise and Clothing Challenges

While there were improvements, Argos faced operational challenges and a significant decrease in online traffic, impacting sales and margins.

Inflationary Pressures

Grocery inflation averaged between 1% and 2% in the year, with a slight increase in the fourth quarter, driven by supply-chain and regulatory cost changes.

Company Guidance

During the call, Sainsbury's provided guidance for the fiscal year 2025, indicating an expectation for retail underlying operating profit of around GBP1 billion, with a focus on sustaining their competitive position. They anticipate continued grocery volume growth ahead of the market and aim to achieve GBP1 billion in structural cost savings by March 2027. The company plans to open 40 new stores and reallocate space to increase food offerings, projecting to deliver free cash flow of at least GBP500 million in the upcoming year. Sainsbury's also highlighted progress in their Nectar loyalty program, aiming for a GBP100 million incremental profit contribution from Nectar360 over the strategy period. They have committed to returning GBP250 million from the Sainsbury's Bank disposal proceeds to shareholders, contingent on regulatory approval. Despite external market noise, Sainsbury's remains confident in their capacity to navigate the competitive environment, projecting continued market share growth and leveraging their cost-saving initiatives.

J Sainsbury Financial Statement Overview

Summary

J Sainsbury shows consistent revenue growth and effective cash flow management. However, thin net profit margins and potential volatility in profitability due to industry competition are concerns. The stable capital structure is a positive, but improving returns on equity could enhance shareholder value.

Income Statement

Positive

J Sainsbury has demonstrated consistent revenue growth over the years, with a slight increase from 2024 to 2025. The gross profit margin has remained relatively stable, indicating operational efficiency. However, net profit margins are thin, reflecting the competitive nature of the grocery industry. EBIT and EBITDA margins show healthy operational performance, but the fluctuations in net income suggest potential volatility in profitability.

Balance Sheet

Positive

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Return on Equity (ROE) is modest, highlighting potential for improvement in shareholder returns. The equity ratio suggests a stable capital structure, although maintaining or improving equity levels would enhance financial stability.

Cash Flow

Very Positive

J Sainsbury's cash flow statement reflects solid operational cash flow relative to net income, demonstrating effective cash management. The free cash flow growth rate indicates positive cash generation capacity, supporting future investments and debt reduction. Despite fluctuations, the company maintains a healthy free cash flow to net income ratio, underscoring strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	32.81B	32.81B	32.70B	32.70B	32.70B	32.70B
Gross Profit	2.23B	2.22B	2.34B	2.34B	2.34B	2.34B
EBITDA	2.23B	2.19B	1.99B	1.99B	1.99B	1.99B
Net Income	267.00M	242.00M	137.00M	137.00M	137.00M	137.00M
Balance Sheet
Total Assets	24.65B	24.65B	25.06B	25.06B	25.06B	25.06B
Cash, Cash Equivalents and Short-Term Investments	3.39B	3.39B	2.00B	2.00B	2.00B	2.00B
Total Debt	6.61B	6.61B	6.55B	6.55B	6.55B	6.55B
Total Liabilities	18.00B	18.00B	18.19B	18.19B	18.19B	18.19B
Stockholders Equity	6.65B	6.65B	6.87B	6.87B	6.87B	6.87B
Cash Flow
Free Cash Flow	304.00M	505.00M	548.00M	548.00M	548.00M	548.00M
Operating Cash Flow	921.00M	1.36B	1.97B	1.97B	1.97B	1.97B
Investing Cash Flow	486.00M	-787.00M	-1.01B	-1.01B	-1.01B	-1.01B
Financing Cash Flow	-1.12B	-1.12B	-282.00M	-282.00M	-282.00M	-282.00M

J Sainsbury Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.18

Price Trends

50DMA

15.88

Positive

100DMA

14.99

Positive

200DMA

13.75

Positive

Market Momentum

MACD

0.12

Positive

RSI

52.87

Neutral

STOCH

15.16

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JSAIY, the sentiment is Positive. The current price of 16.18 is above the 20-day moving average (MA) of 16.13, above the 50-day MA of 15.88, and above the 200-day MA of 13.75, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JSAIY.

J Sainsbury Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSAIY	81 Outperform	$9.13B	21.26	6.29%	4.25%	2.28%	157.72%
KR	70 Outperform	$44.85B	18.44	24.06%	1.93%	-2.11%	25.03%
WMK	67 Neutral	$1.77B	17.83	7.86%	1.90%	2.49%	15.99%
SFM	67 Neutral	$13.73B	28.95	36.94%	―	16.83%	52.71%
GO	66 Neutral	$1.78B	228.37	0.68%	―	8.47%	-85.17%
Sector *	63 Neutral	$20.44B	14.73	-2.84%	3.14%	2.04%	-6.12%
ACI	61 Neutral	$10.89B	11.87	31.10%	2.93%	1.96%	-14.99%

* Consumer Defensive Sector Average

Performance Comparison

JSAIY

J Sainsbury

16.18

1.27

8.52%

Kroger Company

67.84

15.22

28.92%

WMK

Weis Markets

71.65

4.83

7.23%

SFM

Sprouts Farmers

140.54

40.85

40.98%

Grocery Outlet Holding

18.11

0.19

1.06%

ACI

Albertsons Companies

19.46

0.64

3.40%

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.Date of analysis: Aug 18, 2025