J Sainsbury (JSAIY) AI Stock Analysis

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J Sainsbury

(OTC:JSAIY)

Rating:78Outperform

Price Target:

$18.00

▲(15.61%Upside)

J Sainsbury's strong financial performance and positive earnings call drive the overall score. Technical indicators suggest bullish momentum, while valuation metrics present a mixed picture, with a high P/E ratio offset by a robust dividend yield. The company's strategic investments and market share gains position it well for future growth, despite profitability pressures.

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

Market Cap

$8.77B

Dividend Yield6.45%

Average Volume (3M)4.07K

Price to Earnings (P/E)20.5

Beta (1Y)0.31

Revenue Growth2.28%

EPS Growth157.72%

CountryUS

Employees148,498

SectorConsumer Defensive

Sector Strength58

IndustryGrocery Stores

Share Statistics

EPS (TTM)0.66

Shares Outstanding574,271,300

10 Day Avg. Volume0

30 Day Avg. Volume4,066

Financial Highlights & Ratios

PEG Ratio-1.70

Price to Book (P/B)3.41

Price to Sales (P/S)0.00

P/FCF Ratio14.94

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$18.00

Price Target Upside15.61% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

J Sainsbury Business Overview & Revenue Model

Company DescriptionJ Sainsbury plc, commonly known as Sainsbury's, is one of the United Kingdom's leading retailers, operating in the grocery, general merchandise, and clothing sectors. Founded in 1869, the company has a significant presence in the UK retail market with a wide network of supermarkets and convenience stores. Sainsbury's offers a diverse range of products, including fresh food, packaged goods, household items, and apparel. Additionally, the company owns several subsidiaries, including the popular Argos chain, which expands its reach into general merchandise and electronics.

How the Company Makes MoneyJ Sainsbury plc generates revenue through multiple streams, primarily focusing on retail sales of grocery products, which account for the substantial majority of its earnings. The company operates supermarkets and convenience stores across the UK, providing a wide array of food items, beverages, and everyday essentials. Sainsbury's also derives income from its general merchandise and clothing offerings, particularly through its subsidiary Argos, which sells electronics, home products, and toys. Additionally, the company has financial services operations, including Sainsbury's Bank, providing banking and insurance products. Strategic partnerships with suppliers, loyalty programs like Nectar, and digital sales channels further bolster its revenue, reflecting a comprehensive approach to catering to consumer needs and preferences.

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:Apr 17, 2025

(Q4-2025)

% Change Since: 22.31%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant profit growth, market-share gains, and strategic investments in store expansion and loyalty programs. However, challenges were noted in Argos performance and inflation impacts, with some profit disruptions expected due to store reallocation activities.

Q4-2025 Updates

Positive Updates

Strong Profit Growth

Sainsbury's achieved over 15% profit growth, supported by a significant cost-savings program delivering GBP349 million in savings this year.

Record Market Share Gains

Sainsbury's delivered its biggest market-share gains in more than a decade, driven by an 18% increase in primary customers.

Nectar Loyalty Program Expansion

Nectar Prices now cover over 9,000 products, with significant customer engagement, driving loyalty and improving value perception.

Strategic Store Expansion

Sainsbury's plans to open 40 new stores, marking its largest investment in store expansion in over a decade.

Financial Services Division Restructuring

Sainsbury's announced the phased withdrawal from core banking, with expected proceeds of GBP250 million to be returned to shareholders.

Negative Updates

Argos Sales Decline

Argos sales declined by 2.7% with a significant reduction in online traffic and weak summer performance.

Impact of Inflation

Grocery inflation averaged between 1% and 2%, with an uptick in Q4 driven by increased costs in the supply chain and regulatory changes.

Retail Profit Impact

Some disruption expected from space reallocation activities affecting retail profit, with benefits anticipated more in the second half of the year.

Argos Profitability Challenges

Argos operating profits declined, with no improvement in profitability expected in the near term.

Company Guidance

In the call, Sainsbury's provided guidance for the fiscal year 2025, emphasizing key financial metrics and strategic goals. The company expects to deliver around GBP1 billion in retail underlying operating profit, with a focus on sustaining their competitive position in the market. Sainsbury's reported a successful year with a 15% profit growth and a GBP349 million cost-saving, contributing to their target of GBP1 billion in structural cost savings by March 2027. They plan to sustain grocery volume growth ahead of the market, supported by their investments in new store openings and space reallocation. Additionally, Sainsbury's aims to return GBP250 million to shareholders through a special dividend, with potential for further returns as they finalize the sale of their financial services operations. The company also highlighted improvements in customer satisfaction, loyalty program enhancements, and strategic actions in Argos, projecting higher cash returns while maintaining leverage within their target range.

J Sainsbury Financial Statement Overview

Summary

J Sainsbury's financial health is robust, with consistent revenue growth and effective cash flow management. However, profitability margins are pressured by industry competition. The company's capital structure is stable, though 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.81B	32.70B	31.49B	29.89B	29.05B
Gross Profit	2.22B	2.34B	2.32B	2.21B	2.04B
EBITDA	2.19B	1.99B	1.84B	2.40B	1.44B
Net Income	242.00M	137.00M	207.00M	677.00M	-208.00M
Balance Sheet
Total Assets	24.65B	25.06B	26.39B	27.15B	25.47B
Cash, Cash Equivalents and Short-Term Investments	3.39B	2.00B	1.81B	1.02B	1.67B
Total Debt	6.61B	6.55B	7.14B	7.38B	6.94B
Total Liabilities	18.00B	18.19B	19.13B	18.73B	18.77B
Stockholders Equity	6.65B	6.87B	7.25B	8.42B	6.70B
Cash Flow
Free Cash Flow	505.00M	548.00M	1.66B	202.00M	1.50B
Operating Cash Flow	1.36B	1.97B	2.39B	896.00M	2.10B
Investing Cash Flow	-787.00M	-1.01B	-725.00M	-651.00M	-575.00M
Financing Cash Flow	-1.12B	-282.00M	-960.00M	-1.02B	-1.31B

J Sainsbury Technical Analysis

Technical Analysis Sentiment

Positive

Last Price15.57

Price Trends

50DMA

15.09

Positive

100DMA

13.80

Positive

200DMA

13.39

Positive

Market Momentum

MACD

0.08

Positive

RSI

56.27

Neutral

STOCH

72.88

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 15.57 is above the 20-day moving average (MA) of 15.47, above the 50-day MA of 15.09, and above the 200-day MA of 13.39, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 72.88 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 (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSAIY	78 Outperform	$8.77B	20.46	6.29%	6.45%	2.28%	157.72%
SFM	74 Outperform	$16.21B	37.29	35.74%	―	15.51%	53.77%
KR	73 Outperform	$47.20B	19.40	24.06%	1.77%	-2.11%	25.03%
WMK	69 Neutral	$2.08B	19.64	7.54%	1.74%	1.76%	6.01%
ACI	68 Neutral	$11.58B	12.33	31.26%	2.96%	1.46%	-26.54%
Sector *	65 Neutral	$27.01B	15.34	-4.27%	3.20%	1.00%	3.39%
GO	58 Neutral	$1.35B	81.77	1.43%	―	10.37%	-73.84%

* Consumer Defensive Sector Average

Performance Comparison

JSAIY

J Sainsbury

15.49

2.02

15.00%

Kroger Company

71.39

17.68

32.92%

WMK

Weis Markets

76.54

5.89

8.34%

SFM

Sprouts Farmers

165.65

82.39

98.96%

ACI

Albertsons Companies

20.47

1.06

5.46%

Grocery Outlet Holding

13.77

-6.59

-32.37%

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: Jul 01, 2025