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J Sainsbury plc
(LSE:SBRY)
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Rating:62Neutral
Price Target:
382.00 p
▲(14.00% Upside)
Action:Reiterated
Date:10/22/26
The score is driven primarily by steady-but-thin financial performance (improving margins and positive free cash flow, but meaningful leverage) and a supportive earnings update (market share gains and stronger guidance, offset by Argos separation costs and cost pressures). Technically, the uptrend supports the view, though overbought momentum signals raise near-term downside risk; valuation is mixed with a strong yield but a relatively high P/E for the business profile.
Positive Factors
Grocery market share growth
Grocery volume growth and market share gains indicate that Sainsbury’s is strengthening its position in the core food business. This supports durable revenue quality, improves scale economics, and provides a stronger base for sustaining customer retention and profit growth.
Negative Factors
Thin and cost-sensitive profitability
Sainsbury’s remains a low-margin retailer, so relatively small changes in pricing, promotions, or operating costs can materially affect earnings. Although profitability has improved from the 2024 trough, the limited margin buffer makes sustained profit growth more vulnerable to competitive pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Grocery market share growth
Grocery volume growth and market share gains indicate that Sainsbury’s is strengthening its position in the core food business. This supports durable revenue quality, improves scale economics, and provides a stronger base for sustaining customer retention and profit growth.
Read all positive factors
J Sainsbury plc (SBRY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.37B
Dividend Yield5.25%
Average Volume (3M)8.75M
Price to Earnings (P/E)20.4
Beta (1Y)0.90
Revenue Growth-2.65%
EPS Growth7.32%
CountryUK
Employees139,087
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.17
Shares Outstanding2,215,009,000
10 Day Avg. Volume7,500,181
30 Day Avg. Volume8,749,114
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)1.29
Price to Sales (P/S)0.24
P/FCF Ratio6.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£365.67Price Target Upside9.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.24
Revenue Forecast (FY)£31.29B
J Sainsbury plc Business Overview & Revenue Model
Company Description
J Sainsbury plc, along with its group companies, is a prominent retailer and financial services provider operating across the United Kingdom and the Republic of Ireland. The company's diverse activities span food, general merchandise, and clothing...
How the Company Makes Money
J Sainsbury plc makes money mainly by retailing products to consumers through its grocery and general merchandise operations. The largest revenue stream is the sale of food and everyday essentials (e.g., fresh and packaged foods, beverages, and ho...
J Sainsbury plc Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Apr 22, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Sainsbury's reported grocery volume growth, market share gains, higher underlying profit, strong cash generation, improved customer value and availability, growth in online and OnDemand channels, and continued progress in Nectar, technology, and cost savings. The main challenges were subdued market volumes, tough comparatives, declines in General Merchandise and Clothing, increased competition and promotional activity, Argos disposal and separation costs, lower Financial Services contribution expectations, and emerging fresh-food input-cost pressure.Positive Updates
Strong First-Half Grocery Performance
Sainsbury's delivered continued grocery volume growth, market share gains, and profit growth in the first half. Grocery sales increased 2.9%, total Sainsbury's sales grew 2.6%, and total continuing-operations sales grew 4.5% including fuel.
Negative Updates
General Merchandise and Clothing Sales Declines
Grocery growth was partially offset by a 3.4% decline in General Merchandise and Clothing. General Merchandise sales fell 5% year-on-year as Sainsbury's allocated more space to food and simplified the range, while Clothing sales declined around 2% in a subdued and promotional market against tough comparatives.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong First-Half Grocery Performance
Sainsbury's delivered continued grocery volume growth, market share gains, and profit growth in the first half. Grocery sales increased 2.9%, total Sainsbury's sales grew 2.6%, and total continuing-operations sales grew 4.5% including fuel.
Read all positive updates
Company Guidance
The company expects underlying operation profit from continuing operations of between GBP 1,025 million and GBP 1,065 million, with the central point of the range indicating profit growth of 2% in the second half; it expects continuing operations underlying net finance costs to be around GBP 300 million-GBP 310 million in 2026/2027, free cash flow of more than GBP 500 million in 2026/2027 and at least GBP 1.6 billion over the three years to 2027, and continuing cash capital expenditure between GBP 750 million and GBP 800 million in 2026/2027. Financial Services is expected to contribute around GBP 10 million to continuing operations profit growth for the full year versus the previously guided GBP 20 million, with at least half of the GBP 40 million of incremental income expected next year, roughly another GBP 10 million of incremental income from Financial Services next year; the company expects to return more than GBP 600 million of cash to shareholders this year, expects Argos full-year operation profit to be in line or ahead of last year, and expects the Argos transaction to complete in February 2027, with full separation expected by February 2029.J Sainsbury plc Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
54
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.31B | 33.65B | 32.81B | 32.70B | 31.49B | 29.89B |
| Gross Profit | 1.97B | 2.07B | 2.30B | 2.34B | 2.32B | 2.21B |
| EBITDA | 2.03B | 2.13B | 2.28B | 1.79B | 1.84B | 2.40B |
| Net Income | 372.00M | 384.00M | 242.00M | 137.00M | 207.00M | 677.00M |
Balance Sheet | ||||||
| Total Assets | 18.41B | 18.94B | 24.65B | 25.06B | 26.39B | 27.15B |
| Cash, Cash Equivalents and Short-Term Investments | 789.00M | 1.07B | 727.00M | 2.00B | 1.81B | 1.02B |
| Total Debt | 6.34B | 6.60B | 6.61B | 6.55B | 7.14B | 7.38B |
| Total Liabilities | 12.92B | 12.79B | 18.00B | 18.19B | 19.13B | 18.73B |
| Stockholders Equity | 5.50B | 6.15B | 6.65B | 6.87B | 7.25B | 8.42B |
Cash Flow | ||||||
| Free Cash Flow | 2.95B | 1.18B | 2.08B | 400.00M | 1.66B | 202.00M |
| Operating Cash Flow | 3.48B | 1.80B | 2.69B | 1.97B | 2.39B | 896.00M |
| Investing Cash Flow | -862.00M | -1.53B | -787.00M | -1.01B | -725.00M | -651.00M |
| Financing Cash Flow | -1.47B | -1.42B | -1.12B | -282.00M | -960.00M | -1.02B |
J Sainsbury plc Technical Analysis
Neutral
335.10
Price Trends
338.05
Positive
336.76
Positive
328.80
Positive
Market Momentum
3.70
Positive
45.18
Neutral
25.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SBRY, the sentiment is Neutral. The current price of 335.1 is below the 20-day moving average (MA) of 341.73, below the 50-day MA of 338.05, and above the 200-day MA of 328.80, indicating a neutral trend. The MACD of 3.70 indicates Positive momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 25.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SBRY.
J Sainsbury plc Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £32.96B | 17.73 | 16.45% | 2.77% | 5.41% | 30.44% | |
71 Outperform | £2.34B | 17.84 | 20.97% | 3.00% | 6.89% | -9.02% | |
65 Neutral | £2.84B | 18.03 | 14.99% | 2.12% | 9.52% | 18.08% | |
63 Neutral | £2.75B | 16.78 | 21.74% | 3.51% | 3.66% | -48.66% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | £7.37B | 20.43 | 6.39% | 5.25% | -2.65% | 7.32% | |
57 Neutral | £2.72B | -10.86 | -15.94% | ― | ― | ― |
* Consumer Defensive Sector Average
GB:SBRY
J Sainsbury plc
338.40
19.63
6.16%
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J Sainsbury plc Corporate Events
Regulatory Filings and Compliance
Sainsbury Non-Executive Director Katie Bickerstaffe Adds to Shareholding
Positive
Oct 22, 2026
J Sainsbury plc has disclosed a share purchase by non-executive director Katie Bickerstaffe, who acquired 5,732 ordinary shares at £3.468 each on 22 October 2026. Following the transaction on the London Stock Exchange, Bickerstaffe’s to...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Sainsbury’s lifts profit guidance as Argos sale sharpens food-focused strategy
Positive
Oct 22, 2026
J Sainsbury plc reported interim results for the 28 weeks to 12 September 2026 showing solid growth in its core grocery business and a clear strategic pivot towards becoming a simpler, food-focused retailer. The company is progressing the sale of ...
Business Operations and StrategyRegulatory Filings and Compliance
Sainsbury Updates Share Capital and Voting Rights After Sharesave Issuance
Neutral
Oct 1, 2026
J Sainsbury plc has expanded its issued ordinary share capital by 359,077 shares between 1 September and 30 September 2026 under its Sharesave Plan, an employee savings‑related share option scheme. These new shares have been admitted to trad...
Regulatory Filings and Compliance
Sainsbury Discloses Executive Share Incentive Plan Purchase
Neutral
Sep 25, 2026
J Sainsbury plc has disclosed a small share purchase by Chief Technology, Marketing and Data Officer Mark Given under the company’s Share Incentive Plan. On 24 September 2026, Given acquired 41 ordinary shares at £3.396 each on the Lond...
Business Operations and StrategyRegulatory Filings and Compliance
Sainsbury Updates Share Capital and Voting Rights After Sharesave Issuance
Neutral
Sep 1, 2026
J Sainsbury plc reported that it issued 598,543 new ordinary shares between 1 August and 31 August 2026 under its Sharesave Plan, a savings-related share option scheme for employees. These newly issued shares have been admitted to trading on the L...
Regulatory Filings and Compliance
Sainsbury Executive Buys Shares Under Company Incentive Plan
Neutral
Aug 28, 2026
J Sainsbury plc disclosed that Mark Given, its Chief Technology, Marketing and Data Officer, acquired 41 ordinary shares in the company on 27 August 2026 through participation in the firm’s Share Incentive Plan at a price of £3.321 per ...
Executive/Board ChangesRegulatory Filings and Compliance
Sainsbury Executives Report Share Dealings Under Long-Term Incentive Plan
Neutral
Aug 20, 2026
J Sainsbury plc has disclosed share dealings by senior management under its Long Term Incentive Plan. Chief Executive Officer Simon Roberts exercised 735,024 nil‑cost options from a 2021 Win in Food award, selling 346,154 shares at an averag...
Delistings and Listing ChangesRegulatory Filings and Compliance
Sainsbury Updates Share Capital and Voting Rights After Sharesave Issuance
Neutral
Aug 3, 2026
J Sainsbury plc reported that between 30 June and 31 July 2026 it issued 595,957 new ordinary shares under its Sharesave Plan, a savings-related share option scheme for employees. These shares have been admitted to trading on the London Stock Exch...
Executive/Board ChangesRegulatory Filings and Compliance
Sainsbury Discloses Executive Share Purchase Under Incentive Plan
Positive
Jul 31, 2026
J Sainsbury plc reported that Chief Technology, Marketing and Data Officer Mark Given acquired 39 ordinary shares through the company’s Share Incentive Plan on 30 July 2026, at a price of £3.578 per share. The transaction, conducted on ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Sainsbury’s Sells Argos to Swift Partners to Sharpen Food Focus
Positive
Jul 31, 2026
Sainsbury’s has agreed to sell its Argos general merchandise chain to newly created Swift Partners, in a deal aimed at sharpening the group’s focus on its core food business. The disposal continues a broader retrenchment from non-core ...
Business Operations and StrategyStock Buyback
Sainsbury Completes First £200m Tranche of Share Buyback Programme
Positive
Jul 27, 2026
J Sainsbury plc has completed the first £200 million tranche of its share buyback programme, purchasing 62,949,419 ordinary shares since the initiative began on 24 April 2026. The latest transaction involved acquiring 262,394 shares on 24 Jul...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
J Sainsbury Steps Up Share Buybacks and Plans Cancellation of Repurchased Stock
Positive
Jul 24, 2026
J Sainsbury plc has repurchased a total of several million ordinary shares over the period 17–23 July 2026 as part of its ongoing share buyback programme, with transactions executed through Shore Capital Stockbrokers. The company plans to ca...
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.