J Sainsbury (JSAIY) AI Stock Analysis

• Market Cap: $9.76B
• Dividend Yield: 7.55%
• Average Volume (3M): 3.94K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.18
• 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: 570,762,900
• 10 Day Avg. Volume: 11,812
• 30 Day Avg. Volume: 3,937
• PEG Ratio: 0.09
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 12.11
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 7.41
• Enterprise Value/Ebitda: 7.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.2
• Revenue Forecast (FY): $44.42B

• Rating: 76 Outperform
• Price Target: $19.00 ▲(9.76% 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

Sainsbury'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 Financial Statement Overview

Summary

J Sainsbury demonstrates consistent revenue growth and effective cash flow management, though profitability margins are pressured by industry competition. The capital structure is stable, but optimizing 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	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: Negative
• Last Price: 17.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JSAIY, the sentiment is Negative. The current price of 17.31 is below the 20-day moving average (MA) of 17.33, below the 50-day MA of 17.70, and above the 200-day MA of 15.35, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 53.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$9.76B	21.34	6.43%	7.55%	4.42%	165.05%
KR	69 Neutral	$44.42B	16.97	24.83%	2.02%	-2.13%	3.22%
SFM	69 Neutral	$8.26B	16.48	36.96%	―	16.60%	49.76%
ACI	68 Neutral	$9.81B	10.56	32.04%	3.34%	2.08%	-1.63%
WMK	67 Neutral	$1.66B	17.68	7.22%	2.02%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GO	45 Neutral	$1.10B	―	-0.37%	―	7.22%	-108.99%

J Sainsbury Corporate Events

J Sainsbury Reports Strong Interim Results with Market Gains

J Sainsbury plc, a leading UK-based retailer, operates in the grocery and general merchandise sectors, offering a wide range of products through its supermarkets, convenience stores, and online platforms.

Sainsbury’s Earnings Call: Strong Growth Amid Challenges

Sainsbury’s recent earnings call reflected a generally positive sentiment, highlighting the company’s strong performance in the first half of the year. Despite facing challenges such as cost pressures and discretionary spending issues, Sainsbury’s demonstrated significant market share gains and successful product innovations, which were emphasized as key drivers of its growth and strategic execution.