OTCPK:JSAI.Y

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

Fundamentals

Excellent 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


Market Performance


7 Day Return

-1.1%

JSAI.Y

0.3%

US Consumer Retailing

0.07%

US Market


1 Year Return

-31.8%

JSAI.Y

14.0%

US Consumer Retailing

8.9%

US Market

Return vs Industry: JSAI.Y underperformed the US Consumer Retailing industry which returned 14% over the past year.

Return vs Market: JSAI.Y underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

JSAI.YIndustryMarket
7 Day-1.1%0.3%0.07%
30 Day0.6%1.9%-0.3%
90 Day6.1%6.6%-1.6%
1 Year-28.6%-31.8%16.2%14.0%11.3%8.9%
3 Year4.0%-7.3%55.6%45.6%46.3%36.8%
5 Year-16.4%-31.7%68.8%50.4%62.1%44.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JSAI.Y ($10.91) is trading below our estimate of fair value ($25.53)

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


Price To Earnings Ratio

PE vs Industry: JSAI.Y is poor value based on its PE Ratio (23.1x) compared to the Consumer Retailing industry average (20x).

PE vs Market: JSAI.Y is poor value based on its PE Ratio (23.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: JSAI.Y is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: JSAI.Y is good value based on its PB Ratio (0.6x) compared to the US Consumer Retailing industry average (2.1x).


Next Steps

Future Growth

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

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JSAI.Y's forecast earnings growth (23% per year) is above the savings rate (2.7%).

Earnings vs Market: JSAI.Y's earnings (23% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: JSAI.Y's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: JSAI.Y's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JSAI.Y's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has J Sainsbury performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JSAI.Y's earnings have declined by -0.5% per year over the past 5 years.

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

Earnings vs Industry: JSAI.Y had negative earnings growth (-30.8%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-14.2%).


Return on Equity

High ROE: JSAI.Y's Return on Equity (2.6%) is considered low.


Return on Assets

ROA vs Industry: JSAI.Y's Return on Assets is below or equal to the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: JSAI.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is J Sainsbury's financial position?


Financial Position Analysis

Short Term Liabilities: JSAI.Y's short term assets (£7.6B) do not cover its short term liabilities (£11.4B)

Long Term Liabilities: JSAI.Y's short term assets (7.6B) exceeds its long term liabilities (3.7B)


Debt to Equity History and Analysis

Debt Level: JSAI.Y's debt to equity ratio (23.3%) is considered satisfactory

Reducing Debt: JSAI.Y's debt to equity ratio has reduced from 44.7% to 23.3% over the past 5 years.

Debt Coverage: JSAI.Y's debt is well covered by operating cash flow (31.4%).

Interest Coverage: JSAI.Y's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: JSAI.Y's debt is covered by short term assets (assets are 3.854240x debt).


Next Steps

Dividend

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

5.20%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JSAI.Y's dividend (5.2%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: JSAI.Y's dividend (5.2%) is in the top 25% of dividend payers in the US market (3.68%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (120.3%), JSAI.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JSAI.Y's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

What is the CEO of J Sainsbury's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Mike Coupe (58yo)

5.3yrs

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 ($USD5.03M) is about average for companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

Experienced Management: JSAI.Y's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: JSAI.Y's board of directors are considered experienced (4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • John Rogers (50yo)

    Member of the Operating Board & Director

    • Tenure: 9.3yrs
    • Compensation: UK£2.53m
  • Kevin O'Byrne (54yo)

    CFO, Member of the Operating Board & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.23m
  • Mike Coupe (58yo)

    CEO, Chairman of the Operating Board & Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£3.88m
  • Angie Risley (61yo)

    Group HR Director & Member of the Operating Board

    • Tenure: 6.8yrs
  • Tim Fallowfield (55yo)

    Company Secretary

    • Tenure: 15.1yrs
  • Simon Roberts (48yo)

    Retail & Operations Director and Member of Operating Board

    • Tenure: 2.3yrs
  • Phil Jordan

    Group Chief Information Officer & Member of Operating Board

    • Tenure: 1.8yrs
  • Paul Mills-Hicks

    Food Commercial Director & Member of the Operating Board

    • Tenure: 5.4yrs
  • Jim Brown (58yo)

    CEO of Sainsbury's Bank & Member of Operating Board

    • Tenure: 0.08yrs
  • Clo Moriarty

    Group Chief Digital Officer & Member of Operating Board

    • Tenure: 0yrs

Board Members

  • John Rogers (50yo)

    Member of the Operating Board & Director

    • Tenure: 9.3yrs
    • Compensation: UK£2.53m
  • Brian Cassin (51yo)

    Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£68.00k
  • Dame Susan Rice (73yo)

    Senior Independent Director

    • Tenure: 3.3yrs
    • Compensation: UK£122.00k
  • Kevin O'Byrne (54yo)

    CFO, Member of the Operating Board & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.23m
  • David Keens (65yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£92.00k
  • Mike Coupe (58yo)

    CEO, Chairman of the Operating Board & Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£3.88m
  • Martin Scicluna (69yo)

    Non-Executive Chairman

    • Tenure: 0.6yrs
    • Compensation: UK£84.00k
  • Matt Brittin (50yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£68.00k
  • Jo Harlow (57yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£81.00k
  • Jean Tomlin (64yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£71.00k

Company Information

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


Key Information

  • Name: J Sainsbury plc
  • Ticker: JSAI.Y
  • Exchange: OTCPK
  • Founded: 1869
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£4.668b
  • Listing Market Cap: UK£6.046b
  • Shares outstanding: 2.20b
  • 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: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:51
End of Day Share Price2019/10/22 00:00
Earnings2019/03/09
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.