LSE:SBRY

Stock Analysis Report

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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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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: SBRY is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SBRY's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

SBRY

-1.9%

GB Consumer Retailing

0.0002%

GB Market


1 Year Return

-0.3%

SBRY

-2.3%

GB Consumer Retailing

-10.0%

GB Market

Return vs Industry: SBRY exceeded the UK Consumer Retailing industry which returned -1.9% over the past year.

Return vs Market: SBRY exceeded the UK Market which returned -9.1% over the past year.


Shareholder returns

SBRYIndustryMarket
7 Day0.6%-1.9%0.0002%
30 Day5.9%3.6%10.0%
90 Day18.4%1.5%7.0%
1 Year5.0%-0.3%2.0%-2.3%-6.4%-10.0%
3 Year7.4%-6.7%9.7%-1.4%1.3%-11.1%
5 Year9.5%-12.6%35.2%19.3%25.7%-2.9%

Long-Term 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

Valuation

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

49.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBRY (£2.2) is trading below our estimate of fair value (£4.32)

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


Price To Earnings Ratio

PE vs Industry: SBRY is unprofitable, so we can't compare its PE Ratio to the GB Consumer Retailing industry average.

PE vs Market: SBRY is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SBRY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SBRY is good value based on its PB Ratio (0.7x) compared to the GB Consumer Retailing industry average (1.3x).


Next Steps

Future Growth

How is J Sainsbury forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

51.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBRY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: SBRY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SBRY's is expected to become profitable in the next 3 years.

Revenue vs Market: SBRY's revenue (0.9% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: SBRY's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBRY's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has J Sainsbury performed over the past 5 years?

-38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBRY is currently unprofitable.

Growing Profit Margin: SBRY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SBRY is unprofitable, and losses have increased over the past 5 years at a rate of 38.3% per year.

Accelerating Growth: Unable to compare SBRY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SBRY is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-3.3%).


Return on Equity

High ROE: SBRY has a negative Return on Equity (0.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is J Sainsbury's financial position?


Financial Position Analysis

Short Term Liabilities: SBRY's short term assets (£7.3B) do not cover its short term liabilities (£11.6B).

Long Term Liabilities: SBRY's short term assets (£7.3B) do not cover its long term liabilities (£7.7B).


Debt to Equity History and Analysis

Debt Level: SBRY's debt to equity ratio (15.7%) is considered satisfactory.

Reducing Debt: SBRY's debt to equity ratio has reduced from 38.4% to 15.7% over the past 5 years.

Debt Coverage: SBRY's debt is well covered by operating cash flow (165%).

Interest Coverage: SBRY is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBRY's dividend (2.91%) is higher than the bottom 25% of dividend payers in the UK market (1.71%).

High Dividend: SBRY's dividend (2.91%) is low compared to the top 25% of dividend payers in the UK market (4.9%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SBRY is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SBRY's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Simon Roberts (49 yo)

0.42

Tenure

Mr. Simon John Roberts serves as Chief Executive Officer and Director at J Sainsbury plc since June 1, 2020 and serves as Chairman of Operating Board since 2020. He had been Retail and Operations Director ...


Leadership Team

NamePositionTenureCompensationOwnership
Kevin O'Byrne
CFO, Member of the Operating Board & Director3.83yrsUK£1.80m0.022%
£ 1.1m
Simon Roberts
CEO, Director & Chairman of Operating Board0.42yrno data0.0065%
£ 317.2k
Tim Fallowfield
Company Secretary16.17yrsno data0.032%
£ 1.5m
Angie Risley
Group HR Director & Member of the Operating Board7.83yrsno data0.018%
£ 867.6k
Paul Mills-Hicks
Commercial Director & Member of the Operating Board6.5yrsno data0.028%
£ 1.4m
Phil Jordan
Group Chief Information Officer & Member of Operating Board2.83yrsno datano data
Clodagh Moriarty
Retail and Digital Director & Member of Operating Boardno datano datano data
James Brown
CEO of Sainsbury's Bank & Member of Operating Board1.17yrsno datano data
Mark Given
CMO & Member of Operating Board0.83yrno datano data
James Collins
Head of Investor Relationsno datano datano data
Lucy Glover
Senior Assistant Company Secretaryno datano datano data
Patrick Dunne
Director of Group Propertyno datano datano data

3.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SBRY's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin O'Byrne
CFO, Member of the Operating Board & Director3.83yrsUK£1.80m0.022%
£ 1.1m
Simon Roberts
CEO, Director & Chairman of Operating Board0.42yrno data0.0065%
£ 317.2k
Brian Cassin
Independent Non-Executive Director4.58yrsUK£68.00k0.0011%
£ 55.2k
Susan Rice
Senior Independent Director4.33yrsUK£118.00k0.00018%
£ 8.8k
David Keens
Independent Non-Executive Director5.58yrsUK£104.00k0.0045%
£ 220.4k
Martin Scicluna
Non-Executive Chairman1.67yrsUK£475.00k0.00068%
£ 33.2k
Keith C. Weed
Non-Executive Director0.33yrno datano data
Jo Harlow
Independent Non-Executive Director3.17yrsUK£83.00k0.00036%
£ 17.6k
Tanuj Kapilashrami
Non-Executive Director0.33yrno data0.00023%
£ 11.2k

3.2yrs

Average Tenure

58yo

Average Age

Experienced Board: SBRY's board of directors are considered experienced (3.2 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.


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: SBRY
  • Exchange: LSE
  • Founded: 1869
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£4.888b
  • Shares outstanding: 2.22b
  • 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 three segments...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 21:34
End of Day Share Price2020/11/24 00:00
Earnings2020/09/19
Annual Earnings2020/03/07


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.