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J Sainsbury (JSAIY)
:JSAIY
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J Sainsbury
(OTC:JSAIY)
Rating:78Outperform
Price Target:
$18.00
▲(17.65%Upside)
J Sainsbury (JSAIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.70B
Dividend Yield6.5%
Average Volume (3M)11.15K
Price to Earnings (P/E)20.1
Beta (1Y)0.32
Revenue Growth2.28%
EPS Growth157.72%
CountryUS
Employees148,498
SectorConsumer Defensive
Sector Strength53
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.66
Shares Outstanding576,122,300
10 Day Avg. Volume2,964
30 Day Avg. Volume11,153
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
$18.00Price Target Upside17.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q4-2025)
| % Change Since: 20.19%|
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
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 | 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
Neutral
15.30
Price Trends
14.82
Positive
13.57
Positive
13.38
Positive
Market Momentum
0.19
Positive
50.75
Neutral
41.85
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 15.3 is below the 20-day moving average (MA) of 15.50, above the 50-day MA of 14.82, and above the 200-day MA of 13.38, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 41.85 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.70B | 20.11 | 6.29% | 6.50% | 2.28% | 157.72% | |
73 Outperform | $46.11B | 18.96 | 24.06% | 1.82% | -2.11% | 25.03% | |
72 Outperform | $15.63B | 35.73 | 35.74% | ― | 15.51% | 53.77% | |
71 Outperform | $12.50B | 13.50 | 31.26% | 2.69% | 1.46% | -26.54% | |
69 Neutral | $1.99B | 18.57 | 7.54% | 1.84% | 1.76% | 6.01% | |
65 Neutral | $26.88B | 15.20 | -4.27% | 3.19% | 1.02% | 1.89% | |
58 Neutral | $1.26B | 77.70 | 1.43% | ― | 10.37% | -73.84% |
* Consumer Defensive Sector Average
Performance Comparison
JSAIY
J Sainsbury
15.39
2.17
16.41%
KR
Kroger Company
70.71
19.07
36.93%
WMK
Weis Markets
74.81
9.47
14.49%
SFM
Sprouts Farmers
158.72
76.02
91.92%
ACI
Albertsons Companies
22.28
3.22
16.89%
GO
Grocery Outlet Holding
12.88
-8.27
-39.10%
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.