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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:76Outperform
Price Target:
$19.00
▲(14.46% 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 (JSAIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.32B
Dividend Yield7.46%
Average Volume (3M)4.81K
Price to Earnings (P/E)20.6
Beta (1Y)0.16
Revenue Growth4.42%
EPS Growth165.05%
CountryUS
Employees148,498
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.41
Shares Outstanding567,076,900
10 Day Avg. Volume14,433
30 Day Avg. Volume4,811
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 Cap1.88
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit7.20
Enterprise Value/Ebitda6.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 MoneyJ 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 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:
The Fly
The FlyJ 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 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 | 39.20B | 32.81B | 31.49B | 31.49B | 32.70B | 32.70B |
| Gross Profit | 2.44B | 2.22B | 2.32B | 2.32B | 2.34B | 2.34B |
| EBITDA | 2.60B | 2.19B | 1.84B | 1.84B | 1.99B | 1.99B |
| Net Income | 412.44M | 242.00M | 207.00M | 207.00M | 137.00M | 137.00M |
Balance Sheet | ||||||
| Total Assets | 26.24B | 24.65B | 26.39B | 26.39B | 25.06B | 25.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.98B | 3.39B | 1.81B | 1.81B | 2.00B | 2.00B |
| Total Debt | 8.80B | 6.61B | 7.14B | 7.14B | 6.55B | 6.55B |
| Total Liabilities | 17.63B | 18.00B | 19.13B | 19.13B | 18.19B | 18.19B |
| Stockholders Equity | 8.61B | 6.65B | 7.25B | 7.25B | 6.87B | 6.87B |
Cash Flow | ||||||
| Free Cash Flow | -1.57B | 505.00M | 1.66B | 1.66B | 548.00M | 548.00M |
| Operating Cash Flow | -760.49M | 1.36B | 2.39B | 2.39B | 1.97B | 1.97B |
| Investing Cash Flow | -604.43M | -787.00M | -725.00M | -725.00M | -1.01B | -1.01B |
| Financing Cash Flow | -1.36B | -1.12B | -960.00M | -960.00M | -282.00M | -282.00M |
J Sainsbury Technical Analysis
Negative
16.60
Price Trends
17.31
Negative
17.36
Negative
16.02
Positive
Market Momentum
-0.05
Positive
36.63
Neutral
1.21
Positive
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 16.6 is below the 20-day moving average (MA) of 17.41, below the 50-day MA of 17.31, and above the 200-day MA of 16.02, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.63 is Neutral, neither overbought nor oversold. The STOCH value of 1.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JSAIY.
J Sainsbury Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $9.32B | 20.57 | 6.43% | 7.46% | 4.42% | 165.05% | |
69 Neutral | $7.81B | 15.70 | 36.96% | ― | 16.60% | 49.76% | |
67 Neutral | $1.64B | 17.58 | 7.22% | 2.06% | 3.11% | 6.54% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $38.67B | 56.30 | 7.75% | 2.15% | -1.77% | -70.83% | |
54 Neutral | $8.85B | 11.07 | 29.65% | 3.49% | 2.08% | -1.63% | |
52 Neutral | $946.04M | -199.37 | -0.37% | ― | 7.22% | -108.99% |
* Consumer Defensive Sector Average
JSAIY
J Sainsbury
16.60
4.32
35.21%
KR
Kroger Company
61.47
4.02
7.00%
WMK
Weis Markets
66.69
0.55
0.83%
SFM
Sprouts Farmers
81.06
-59.47
-42.32%
GO
Grocery Outlet Holding
9.49
-6.50
-40.65%
ACI
Albertsons Companies
17.19
-2.42
-12.35%
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.