J Sainsbury (JSAIY) AI Stock Analysis

• Market Cap: $10.26B
• Dividend Yield: 7.46%
• Average Volume (3M): 4.81K
• Price to Earnings (P/E): 23.3
• 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: 0.39
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 5.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.2
• Revenue Forecast (FY): $45.42B

• Rating: 76 Outperform
• Price Target: $21.00 ▲(14.13% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

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 growth & customer proposition

Achieving the highest H1 market share in five years signals durable competitive positioning. Sustained grocery volume growth ahead of the market and a strong customer proposition indicate resilient customer loyalty, helping protect revenue and share even amid industry volatility over the next 2-6 months.

Strong operational cash generation

Consistent operational cash flow and positive free cash flow growth provide financial flexibility for reinvestment, debt reduction and shareholder returns. Reliable cash generation reduces refinancing risk and supports capital deployment choices that sustain business performance over the medium term.

Stable capital structure and balanced leverage

A moderate debt-to-equity position and stable capital structure give the company room to absorb shocks and fund strategic initiatives without excessive leverage. This balance supports consistent investment in store expansion, online capability and product ranges while maintaining financial resilience.

Negative Factors

Thin net profit margins

Persistently thin net margins limit the company's ability to convert sales into earnings, increasing sensitivity to cost shocks or slower sales. Margin compression reduces ROE improvement prospects and constrains capacity to expand investment or dividend payouts without efficiency gains or pricing power improvements.

Incremental regulatory and payroll cost pressures

Material incremental costs from National Insurance and EPR are structural headwinds that erode profit leverage. Unless offset by price, mix or cost efficiencies, these recurring charges will compress margins and require sustained productivity improvements to protect free cash flow and shareholder returns.

Discretionary spending weakness (Argos exposure)

Weakness in discretionary categories and deflation in electricals and furniture limit growth and margin expansion in higher-margin non-food lines like Argos. Prolonged cautious consumer spending would constrain diversification benefits and slow recovery of non-grocery profitability over the medium term.

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	Mar 2024	Mar 2023	Mar 2021	Feb 2020	Mar 2019
Income Statement
Total Revenue	33.15B	32.81B	32.70B	29.89B	29.05B	28.99B
Gross Profit	2.07B	2.22B	2.34B	2.21B	2.04B	2.19B
EBITDA	2.21B	2.19B	1.99B	2.40B	1.34B	1.90B
Net Income	355.61M	242.00M	137.00M	677.00M	-208.00M	152.00M
Balance Sheet
Total Assets	19.51B	24.65B	25.06B	27.15B	25.47B	28.17B
Cash, Cash Equivalents and Short-Term Investments	1.47B	3.39B	2.00B	1.02B	1.67B	1.08B
Total Debt	6.54B	6.61B	6.55B	7.38B	6.94B	7.42B
Total Liabilities	13.11B	18.00B	18.19B	18.73B	18.77B	20.64B
Stockholders Equity	6.40B	6.65B	6.87B	8.42B	6.70B	7.53B
Cash Flow
Free Cash Flow	-1.17B	505.00M	548.00M	202.00M	1.50B	1.05B
Operating Cash Flow	-492.00M	1.36B	1.97B	896.00M	2.10B	1.69B
Investing Cash Flow	-220.00M	-787.00M	-1.01B	-651.00M	-575.00M	-571.00M
Financing Cash Flow	-1.13B	-1.12B	-282.00M	-1.02B	-1.31B	-1.07B

J Sainsbury Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 18.4 is below the 20-day moving average (MA) of 18.76, above the 50-day MA of 17.89, and above the 200-day MA of 16.86, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 0.18 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSAIY	76 Outperform	$10.26B	23.26	6.43%	7.46%	4.42%	165.05%
WMK	67 Neutral	$1.65B	17.86	7.22%	2.06%	3.11%	6.54%
SFM	65 Neutral	$7.00B	13.97	38.43%	―	16.60%	49.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ACI	61 Neutral	$9.10B	11.53	29.65%	3.49%	2.08%	-1.63%
KR	59 Neutral	$43.70B	62.50	7.75%	2.15%	-1.77%	-70.83%
GO	52 Neutral	$907.77M	-194.33	-0.37%	―	7.22%	-108.99%