J Sainsbury (JSAIY) AI Stock Analysis

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J Sainsbury

(OTC:JSAIY)

Select Model

Outperform 75 (OpenAI - 4o)

Rating:75Outperform

Price Target:

$20.00

▲(10.68% Upside)

J Sainsbury's strong financial performance and positive earnings call sentiment are key strengths, driving the overall score. While technical indicators are neutral, the company's strategic initiatives and shareholder returns provide a solid investment case.

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

Market Cap

$10.07B

Dividend Yield3.74%

Average Volume (3M)875.00

Price to Earnings (P/E)22.2

Beta (1Y)0.17

Revenue Growth4.42%

EPS Growth165.05%

CountryUS

Employees148,498

SectorConsumer Defensive

Sector Strength42

IndustryGrocery Stores

Share Statistics

EPS (TTM)0.41

Shares Outstanding572,666,000

10 Day Avg. Volume0

30 Day Avg. Volume875

Financial Highlights & Ratios

PEG Ratio0.09

Price to Book (P/B)0.92

Price to Sales (P/S)0.19

P/FCF Ratio12.11

Enterprise Value/Market Cap1.64

Enterprise Value/Revenue0.50

Enterprise Value/Gross Profit7.41

Enterprise Value/Ebitda7.43

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)1.21

Revenue Forecast (FY)$44.43B

J Sainsbury Business Overview & Revenue Model

Company DescriptionJ Sainsbury plc, commonly known as Sainsbury's, is a leading British supermarket chain headquartered in London. The company operates in the retail sector and is known for its diverse range of products, including groceries, clothing, and household goods. Sainsbury's operates various store formats, including supermarkets, convenience stores, and online shopping services, catering to a wide demographic of customers across the UK.

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:Nov 06, 2025

(Q2-2026)

% Change Since: |

Next Earnings Date:Apr 23, 2026

Earnings Call Sentiment Positive

Sainsbury's delivered strong results in the first half, with significant market share gains and successful product innovations. However, the company faces ongoing cost pressures and challenges in discretionary spending. Overall, the positive aspects of growth and strategic execution outweigh the challenges.

Q2-2026 Updates

Positive Updates

Strong Market Share Gains

Sainsbury's achieved its highest H1 market share in five years, driven by a strong customer proposition and continued grocery volume growth ahead of the market.

Taste the Difference Growth

The Taste the Difference range achieved 18% growth in fresh sales over the first half, reflecting a strong customer perception of quality.

Financial Performance and Shareholder Returns

Total underlying operating profit increased by 7%, and Sainsbury's expects to return more than GBP 800 million to shareholders this year through dividends and buybacks.

Expansion and Innovation

Sainsbury's opened new stores and expanded its range with more than 600 new products for summer, contributing to strong seasonal performance.

Nectar Loyalty Program Success

Nectar continues to be a leading loyalty program, and the introduction of Nectar360 Pollen is expected to drive further growth and customer engagement.

Argos Performance Improvement

Argos delivered a good seasonal performance with market share gains and improved profitability, aided by a strong trading margin and reduced clearance activities.

Negative Updates

Cost Pressures

Sainsbury's faces significant incremental cost pressures from higher National Insurance contributions and an EPR charge, impacting profit leverage.

Challenges in Discretionary Spend

There is a cautious outlook for discretionary spending, particularly in Argos, due to deflationary pressures in electricals and furniture categories.

Company Guidance

In the call, Sainsbury's provided a detailed overview of its fiscal year '25/'26 interim results, highlighting key financial metrics and strategic initiatives. The company reported a 5.2% growth in Sainsbury's sales, with total retail sales growth of 4.8% excluding fuel. Retail underlying operating profit was broadly in line with last year at GBP 504 million. Sainsbury's continues to invest in its value proposition, maintaining a competitive position despite facing GBP 140 million in National Insurance costs and a GBP 53 million EPR charge. The company plans to return more than GBP 800 million to shareholders through dividends and buybacks, supported by strong cash flow and net proceeds from its phased withdrawal from core banking. Sainsbury's also noted an 18% growth in Taste the Difference fresh sales and achieved the highest H1 market share in five years. Argos showed improved profitability and market share growth, with sales increasing by 2.3%. Additionally, Sainsbury's strengthened its profit guidance for the full year, highlighting sustained strong momentum and customer satisfaction.

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

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

Neutral

Last Price18.07

Price Trends

50DMA

17.73

Positive

100DMA

16.81

Positive

200DMA

15.04

Positive

Market Momentum

MACD

0.11

Positive

RSI

48.60

Neutral

STOCH

61.81

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JSAIY, the sentiment is Neutral. The current price of 18.07 is below the 20-day moving average (MA) of 18.13, above the 50-day MA of 17.73, and above the 200-day MA of 15.04, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 61.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JSAIY.

J Sainsbury Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSAIY	75 Outperform	$10.07B	22.19	6.43%	3.74%	4.42%	165.05%
KR	71 Outperform	$42.70B	16.31	24.83%	2.00%	-2.13%	3.22%
SFM	71 Outperform	$7.69B	15.11	36.96%	―	16.60%	49.76%
ACI	67 Neutral	$9.60B	10.34	32.04%	3.36%	2.08%	-1.63%
WMK	66 Neutral	$1.58B	16.80	7.22%	2.07%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GO	51 Neutral	$1.14B	―	-0.37%	―	7.22%	-108.99%

* Consumer Defensive Sector Average

Performance Comparison

JSAIY

J Sainsbury

17.90

6.09

51.57%

Kroger Company

65.40

7.01

12.01%

WMK

Weis Markets

65.81

-7.32

-10.01%

SFM

Sprouts Farmers

82.12

-63.33

-43.54%

Grocery Outlet Holding

11.40

-7.71

-40.35%

ACI

Albertsons Companies

17.86

-0.68

-3.67%

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: Nov 06, 2025