J Sainsbury (JSAIY) AI Stock Analysis

• Market Cap: $10.10B
• Dividend Yield: 7.46%
• Average Volume (3M): 4.81K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.19
• Revenue Growth: 4.42%
• EPS Growth: 165.05%
• Country: US
• Employees: 148,498
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.41
• Shares Outstanding: 565,905,000
• 10 Day Avg. Volume: 14,433
• 30 Day Avg. Volume: 4,811
• PEG Ratio: -1.25
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 10.73
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 6.15
• Enterprise Value/Ebitda: 5.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $19.00 ▲(3.71% Upside)

J Sainsbury's strong financial performance and positive earnings call sentiment are the primary drivers of its score. The high dividend yield adds to its attractiveness. However, technical indicators suggest caution in the short term, and thin profit margins highlight competitive pressures in the grocery industry.

Positive Factors

Market Share Gains

Significant market share gains indicate strong competitive positioning and customer loyalty, which can drive sustained revenue growth and enhance brand strength.

Cash Flow Management

Effective cash flow management supports future investments and debt reduction, ensuring financial stability and flexibility for strategic initiatives.

Product Innovation

Continuous product innovation enhances customer engagement and drives sales growth, maintaining competitive edge in a dynamic retail market.

Negative Factors

Cost Pressures

Rising costs can erode profit margins, challenging the company's ability to maintain profitability and necessitating efficiency improvements.

Thin Profit Margins

Thin profit margins limit financial flexibility and can hinder reinvestment in growth initiatives, making it crucial to manage costs effectively.

Challenges in Discretionary Spend

Weak discretionary spending affects non-essential product sales, potentially impacting overall revenue growth and necessitating strategic adjustments.

J Sainsbury 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 – 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 Money

J Sainsbury generates revenue primarily through the sale of groceries and general merchandise. Its key revenue streams include in-store sales from its supermarket and convenience store formats, online grocery deliveries, and sales from its non-food segments such as clothing and homeware. Additionally, Sainsbury's earns income from its banking services, which include savings accounts and loans. Significant partnerships, such as those with delivery service providers, enhance its online shopping capabilities and customer reach, contributing to overall earnings. Seasonal promotions and loyalty programs also play a crucial role in driving customer retention and sales growth.

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

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

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

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	33.15B	32.81B	31.49B	31.49B	32.70B	32.70B
Gross Profit	2.07B	2.22B	2.32B	2.32B	2.34B	2.34B
EBITDA	2.21B	2.19B	1.84B	1.84B	1.99B	1.99B
Net Income	355.61M	242.00M	207.00M	207.00M	137.00M	137.00M
Balance Sheet
Total Assets	19.51B	24.65B	26.39B	26.39B	25.06B	25.06B
Cash, Cash Equivalents and Short-Term Investments	1.47B	3.39B	1.81B	1.81B	2.00B	2.00B
Total Debt	6.54B	6.61B	7.14B	7.14B	6.55B	6.55B
Total Liabilities	13.11B	18.00B	19.13B	19.13B	18.19B	18.19B
Stockholders Equity	6.40B	6.65B	7.25B	7.25B	6.87B	6.87B
Cash Flow
Free Cash Flow	-1.17B	505.00M	1.66B	1.66B	548.00M	548.00M
Operating Cash Flow	-492.00M	1.36B	2.39B	2.39B	1.97B	1.97B
Investing Cash Flow	-220.00M	-787.00M	-725.00M	-725.00M	-1.01B	-1.01B
Financing Cash Flow	-1.13B	-1.12B	-960.00M	-960.00M	-282.00M	-282.00M

J Sainsbury Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 18.32 is above the 20-day moving average (MA) of 17.27, above the 50-day MA of 17.23, and above the 200-day MA of 16.42, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 70.31 is Negative, neither overbought nor oversold. The STOCH value of 100.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JSAIY.

J Sainsbury Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSAIY	76 Outperform	$10.10B	22.71	6.43%	7.46%	4.42%	165.05%
SFM	69 Neutral	$6.77B	12.85	36.96%	―	16.60%	49.76%
WMK	67 Neutral	$1.83B	19.50	7.22%	2.06%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KR	56 Neutral	$42.27B	58.77	7.75%	2.15%	-1.77%	-70.83%
ACI	56 Neutral	$9.13B	11.24	29.65%	3.49%	2.08%	-1.63%
GO	52 Neutral	$960.76M	-204.41	-0.37%	―	7.22%	-108.99%