DB:SUY1

Stock Analysis Report

Executive Summary

J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has J Sainsbury's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUY1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

SUY1

1.2%

DE Consumer Retailing

-0.2%

DE Market


1 Year Return

-6.9%

SUY1

2.8%

DE Consumer Retailing

13.7%

DE Market

Return vs Industry: SUY1 underperformed the German Consumer Retailing industry which returned 2.8% over the past year.

Return vs Market: SUY1 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

SUY1IndustryMarket
7 Day4.6%1.2%-0.2%
30 Day1.4%2.8%0.3%
90 Day3.7%2.4%3.7%
1 Year-1.7%-6.9%6.8%2.8%17.2%13.7%
3 Year-7.7%-18.6%7.3%-3.4%15.4%5.3%
5 Year-16.3%-32.8%9.5%-7.3%21.3%4.7%

Price Volatility Vs. Market

How volatile is J Sainsbury's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is J Sainsbury undervalued compared to its fair value and its price relative to the market?

48.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUY1 (€2.54) is trading below our estimate of fair value (€4.92)

Significantly Below Fair Value: SUY1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SUY1 is poor value based on its PE Ratio (118.1x) compared to the Consumer Retailing industry average (21x).

PE vs Market: SUY1 is poor value based on its PE Ratio (118.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: SUY1 is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: SUY1 is good value based on its PB Ratio (0.6x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is J Sainsbury forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUY1's forecast earnings growth (25.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: SUY1's earnings (25.3% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUY1's revenue (1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: SUY1's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUY1's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has J Sainsbury performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUY1 has a large one-off loss of £104.0M impacting its September 21 2019 financial results.

Growing Profit Margin: SUY1's current net profit margins (0.1%) are lower than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: SUY1's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: SUY1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUY1 had negative earnings growth (-84.3%) over the past year, making it difficult to compare to the Consumer Retailing industry average (2%).


Return on Equity

High ROE: SUY1's Return on Equity (0.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is J Sainsbury's financial position?


Financial Position Analysis

Short Term Liabilities: SUY1's short term assets (£8.2B) do not cover its short term liabilities (£12.6B).

Long Term Liabilities: SUY1's short term assets (£8.2B) do not cover its long term liabilities (£8.4B).


Debt to Equity History and Analysis

Debt Level: SUY1's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: SUY1's debt to equity ratio has reduced from 51.9% to 19.9% over the past 5 years.

Debt Coverage: SUY1's debt is well covered by operating cash flow (43.8%).

Interest Coverage: SUY1's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: SUY1 has a high level of physical assets or inventory.

Debt Coverage by Assets: SUY1's debt is covered by short term assets (assets are 5.2x debt).


Next Steps

Dividend

What is J Sainsbury's current dividend yield, its reliability and sustainability?

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUY1's dividend (5.26%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: SUY1's dividend (5.26%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: SUY1's dividend payments have been volatile in the past 10 years.

Growing Dividend: SUY1's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (632.8%), SUY1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUY1's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Mike Coupe (58yo)

5.6yrs

Tenure

UK£3,881,000

Compensation

Mr. Michael Andrew Coupe, also known as Mike, has been the Chief Executive Officer at J Sainsbury plc since July 9, 2014 and its Member of Operating Board since October 2004 & Chairman of the Operating Boa ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD5.00M) is above average for companies of similar size in the German market ($USD3.16M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Coupe
CEO, Chairman of the Operating Board & Executive Director5.6yrsUK£3.88m0.095% £5.2m
Kevin O'Byrne
CFO, Member of the Operating Board & Director3.1yrsUK£2.23m0.015% £820.5k
Tim Fallowfield
Company Secretary15.4yrsno data0.026% £1.4m
Angie Risley
Group HR Director & Member of the Operating Board7.1yrsno data0.011% £600.0k
Paul Mills-Hicks
Commercial Director & Member of the Operating Board5.8yrsno data0.021% £1.1m
Simon Roberts
Retail & Operations Director and Member of Operating Board2.6yrsno data0.00045% £24.7k
Phil Jordan
Group Chief Information Officer & Member of Operating Board2.1yrsno datano data
Clodagh Moriarty
Group Chief Digital Officer & Member of Operating Board0yrsno datano data
James Brown
CEO of Sainsbury's Bank & Member of Operating Board0.4yrsno datano data
James Collins
Head of Investor Relations0yrsno datano data

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SUY1's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Coupe
CEO, Chairman of the Operating Board & Executive Director5.6yrsUK£3.88m0.095% £5.2m
Kevin O'Byrne
CFO, Member of the Operating Board & Director3.1yrsUK£2.23m0.015% £820.5k
Brian Cassin
Non-Executive Director3.8yrsUK£68.00k0.0011% £62.1k
Susan Rice
Senior Independent Director3.6yrsUK£122.00k0.00018% £9.9k
David Keens
Non-Executive Director4.8yrsUK£92.00k0.0045% £249.1k
Martin Scicluna
Non-Executive Chairman0.9yrsUK£84.00k0.00068% £37.4k
Matt Brittin
Non-Executive Director9.1yrsUK£68.00k0.00064% £35.2k
Jo Harlow
Non-Executive Director2.4yrsUK£81.00k0.00036% £19.8k
Jean Tomlin
Non-Executive Director7.1yrsUK£71.00k0.00020% £11.0k

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: SUY1's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

J Sainsbury plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: J Sainsbury plc
  • Ticker: SUY1
  • Exchange: DB
  • Founded: 1869
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£4.610b
  • Listing Market Cap: UK£5.499b
  • Shares outstanding: 2.21b
  • Website: https://www.about.sainsburys.co.uk

Number of Employees


Location

  • J Sainsbury plc
  • Sainsbury's Store Support Centre
  • 33 Holborn
  • London
  • Greater London
  • EC1N 2HT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBRYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
JSNS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SUY1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SBRYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
SBRY NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
JSAI.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDJul 2004

Biography

J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom. It operates through four segments: Retail – Food, Retail – General Merchandise and Clothing, Financial Services, and Property Investment. The company operates various store formats, including convenience stores and supermarkets. It is also involved in online grocery and general merchandise operations; and provides home, clothing, toy, electrical, and technology products. As of March 9, 2019, the company operated 883 Argos stores and 317 collection points, including 207 Sainsbury’s convenience stores, as well as 16 Habitat stores. In addition, the company invests in and develops real estate properties; and offers financial services, such as credit cards, and travel money and personal loans, as well as home, car, pet, and life insurance. J Sainsbury plc was founded in 1869 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:11
End of Day Share Price2020/02/20 00:00
Earnings2019/09/21
Annual Earnings2019/03/09


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.