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J Sainsbury Plc Sponsored ADR (JSAIY)
OTHER OTC:JSAIY
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J Sainsbury
(OTC:JSAIY)
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Select Model
Rating:81Outperform
Price Target:
$18.50
▲(5.17% 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
$9.78B
Dividend Yield3.96%
Average Volume (3M)754.00
Price to Earnings (P/E)22.8
Beta (1Y)0.30
Revenue Growth2.28%
EPS Growth157.72%
CountryUS
Employees148,498
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.66
Shares Outstanding572,978,200
10 Day Avg. Volume0
30 Day Avg. Volume754
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 Cap1.20
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit5.27
Enterprise Value/Ebitda5.28
Forecast
1Y Price Target
$18.50Price Target Upside5.17% 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
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.
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.
Data provided by:
Main Street Data
Main Street DataJ 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
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.78
Positive
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.75
Positive
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.82
Very Positive
| 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
Positive
17.59
Price Trends
16.29
Positive
15.61
Positive
14.10
Positive
Market Momentum
0.36
Negative
62.18
Neutral
75.94
Neutral
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 17.59 is above the 20-day moving average (MA) of 16.72, above the 50-day MA of 16.29, and above the 200-day MA of 14.10, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 75.94 is Neutral, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $9.78B | 22.80 | 6.29% | 3.96% | 2.28% | 157.72% | |
67 Neutral | 11.69B | 24.60 | 28.79% | ― | 16.83% | 52.71% | |
65 Neutral | 42.76B | 16.33 | 29.38% | 2.00% | -2.13% | 3.22% | |
64 Neutral | 1.72B | 17.34 | 8.07% | 1.92% | 2.49% | 15.99% | |
60 Neutral | 9.92B | 10.80 | 29.60% | 3.24% | 1.96% | -14.99% | |
58 Neutral | 1.53B | 192.69 | 0.69% | ― | 8.47% | -85.17% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
JSAIY
J Sainsbury
17.59
2.63
17.58%
KR
Kroger Company
65.35
10.41
18.95%
WMK
Weis Markets
70.65
3.63
5.42%
SFM
Sprouts Farmers
119.38
10.70
9.85%
GO
Grocery Outlet Holding
15.28
-1.00
-6.14%
ACI
Albertsons Companies
17.58
-0.42
-2.33%
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.