olivLaw · European equity research
J Sainsbury plc SBRY.L
United Kingdom · London Stock Exchange · ISIN GB00B019KW72 · Vertical: Listed companies from United Kingdom
J Sainsbury plc is one of the largest food retailers in the United Kingdom, operating Sainsbury's, Argos, Nectar and Habitat. Under its Next Level Sainsbury's strategy it focuses on value, loyalty through the Nectar programme and a £1 billion cost savings target, amid a very competitive market and cost-of-living pressure.
At the close of 05 Nov 2026, J Sainsbury plc (SBRY.L) stock was 3.59 GBP (+0.79% on the day), with market capitalisation 8.2 bn GBP, P/E 21.3 on diluted EPS of 0.17 GBP over the last 12 months, dividend yield 6.94%, beta 0.04, 52-week range 2.95–3.60 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 61.7
- strong (55–70)
- Bollinger (20, 2)
- 3.33 – 3.64
- in the upper half of the band · %B 0.84 · band width 8.9%
- SMA 50 / 200
- 3.40 / 3.35
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.04 / 0.03
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +11.6% | −0.6% | +12.3 pp | — |
| 3 months | +1.4% | −4.2% | +5.6 pp | — |
| 6 months | +12.5% | +4.3% | +8.2 pp | — |
| Year to date | +10.5% | +7.5% | +3.0 pp | — |
| 1 year | +6.5% | +9.9% | −3.4 pp | +5.8% |
| 3 years | +32.8% | +49.8% | −17.1 pp | +26.3% |
| 5 years | +26.3% | +42.8% | −16.5 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 33 percentile of its own 3-quarter history (min 20.7, median 24.2, max 43.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 32.2 bn | 32.8 bn | 33.6 bn |
| Revenue YoY | unavailable | +1.7% | +2.7% |
| Net income | 137.0 m | 253.0 m | 393.0 m |
| Net income YoY | unavailable | +84.7% | +55.3% |
| Diluted EPS | 0.06 | 0.11 | 0.17 |
| Diluted EPS YoY | unavailable | +87.7% | +57.9% |
| net % | 0.4% | 0.8% | 1.2% |
| Free cash flow | 732.0 m | 185.0 m | 1.2 bn |
Balance sheet & financial health
Fiscal year 2026 · 28 Feb 2026
- Cash
- 1.1 bn GBP
- Financial debt
- 1.1 bn GBP
- Net debt
- -6.0 m GBP
- Equity
- 6.2 bn GBP
- Total assets
- 18.9 bn GBP
- Debt / equity
- 0.17x
- Current ratio
- 0.56x
- ROE
- 6.1%
- ROA
- 1.8%
- FCF margin
- 3.5%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 32.2 bn | 32.8 bn | 33.6 bn | esef· 11 Jun 2026verified |
| Cost of revenue | 30.1 bn | 30.6 bn | 31.4 bn | esef· 11 Jun 2026verified |
| Gross profit | 2.1 bn | 2.2 bn | 2.2 bn | esef· 11 Jun 2026verified |
| Operating income | 744.0 m | 890.0 m | 897.0 m | esef· 11 Jun 2026verified |
| Interest expense | 336.0 m | 350.0 m | 342.0 m | esef· 11 Jun 2026verified |
| Pre-tax income | 489.0 m | 607.0 m | 619.0 m | esef· 11 Jun 2026verified |
| Income tax | 181.0 m | 186.0 m | 205.0 m | esef· 11 Jun 2026verified |
| Net income | 137.0 m | 253.0 m | 393.0 m | esef· 11 Jun 2026verified |
| Diluted EPS | 0.06 | 0.11 | 0.17 | esef· 11 Jun 2026verified |
| Dividend per share | 0.13 | 0.13 | 0.25 | esef· 11 Jun 2026derived |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 2.0 bn | 2.2 bn | 1.1 bn | esef· 11 Jun 2026verified |
| Receivables | 582.0 m | 572.0 m | 431.0 m | esef· 11 Jun 2026verified |
| Inventories | 1.9 bn | 1.9 bn | 2.0 bn | esef· 11 Jun 2026verified |
| Current assets | 7.7 bn | 8.5 bn | 3.5 bn | esef· 11 Jun 2026verified |
| Property, plant & equipment, net | 9.3 bn | 9.4 bn | 9.4 bn | esef· 11 Jun 2026verified |
| Total assets | 25.2 bn | 24.8 bn | 18.9 bn | esef· 11 Jun 2026verified |
| Accounts payable | 5.3 bn | 5.5 bn | 5.6 bn | esef· 11 Jun 2026verified |
| Short-term debt | 65.0 m | 72.0 m | 80.0 m | esef· 11 Jun 2026verified |
| Long-term debt | 1.1 bn | 1.0 bn | 981.0 m | esef· 11 Jun 2026verified |
| Current liabilities | 11.5 bn | 11.4 bn | 6.3 bn | esef· 11 Jun 2026verified |
| Total liabilities | 18.2 bn | 18.0 bn | 12.8 bn | esef· 11 Jun 2026verified |
| Equity | 7.0 bn | 6.8 bn | 6.2 bn | esef· 11 Jun 2026verified |
| Shares outstanding at year end | 2.3 bn | 2.3 bn | 2.3 bn | esef· 11 Jun 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 2.1 bn | 802.0 m | 1.8 bn | esef· 11 Jun 2026verified |
| Capex | 1.4 bn | 617.0 m | 613.0 m | esef· 11 Jun 2026verified |
| Free cash flow | 732.0 m ≈ | 185.0 m ≈ | 1.2 bn ≈ | esef· 11 Jun 2026derived |
| Investing cash flow | -1.5 bn | -787.0 m | -787.0 m | esef· 11 Jun 2026verified |
| Financing cash flow | -282.0 m | -1.1 bn | -1.4 bn | esef· 11 Jun 2026verified |
| Dividends paid | 306.0 m | 308.0 m | 566.0 m | esef· 11 Jun 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 56 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 8.2 bn GBP
Key indicators
Coverage and freshness
Score by group
- Quality53
- Returns99
- Balance sheet10
- Valuation60
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Unattractive profile · Score 56/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 10.2% | 42 (vs peers) | 17% |
| Net margin · Quality | 1.2% | 26 (vs peers) | 10% |
| FCF conversion · Quality | 295.4% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 2.6x | 17 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 0.6x | 0 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 21.3x | 28 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 14.2% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 6.9% | 99 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 48.8% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet10/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality53/100 · 3/3 factors with a value
- Returns99/100 · 2/2 factors with a value
- Valuation60/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
J SAINSBURY PLC (SBRY.L). Latest full fiscal year: 2026; data up to 2026-02-28.
Figures computed from the financial statements: revenue 33.6 bn GBP in 2026; YoY growth 2.7%; net margin 1.2%; ROE 6.1%.
The estimated value range is 2.44–3.02 GBP per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 2.70 GBP, the price of 3.59 GBP leaves a potential of -24.8% (value / price − 1) and a margin of safety of -32.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 56/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 295.4%
- FCF yield: 14.2%
- Shareholder yield (distributions): 6.9%
- Payout ratio (FCF): 48.8%
What contradicts it
- Net margin: 1.2%
- Interest coverage: 2.6x
- Current ratio: 0.6x
- P/E (TTM): 21.3x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| SBRY.LJ Sainsbury PLC | 8.2 bn | 21.3 | 6.1% | 1.2% | +2.7% | +11% / +26% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for SBRY.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 2.13 Total return -37% · Per year -37% | 3.78 Total return 10% · Per year 10% | 5.69 Total return 64% · Per year 64% |
| 3 years | 2.00 Total return -34% · Per year -13% | 3.98 Total return 26% · Per year 8% | 6.60 Total return 103% · Per year 27% |
| 5 years | 1.87 Total return -31% · Per year -7% | 4.19 Total return 43% · Per year 7% | 7.65 Total return 148% · Per year 20% |
- Exit P/E± 0.99
- Net margin± 0.70
- Annual revenue growth± 0.58
- Annual dilution± 0.06
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
J Sainsbury plc is one of the largest food retailers in the United Kingdom, operating Sainsbury's, Argos, Nectar and Habitat. Under its Next Level Sainsbury's strategy it focuses on value, loyalty through the Nectar programme and a £1 billion cost savings target, amid a very competitive market and cost-of-living pressure 1.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Business continuity and major incident responsehigh
A major incident or catastrophic event could affect the ability to trade, given operational complexity and some ageing systems 1.
- Business strategy and changehigh
Delivering several concurrent change programmes in the right sequence and at the right pace is demanding and could affect the expected benefits 1.
- Data securityhigh
A major breach of customer or colleague information could have significant operational, financial and reputational effects. The company has increased its assessed exposure after incidents in the sector 1.
- Political and regulatory environmentmedium
An evolving regulatory framework could bring additional costs and new restrictions, and the net exposure has increased 1.
- Cost and price pressuremedium
If operating cost inflation persists, planned savings could prove insufficient to protect profit 1.
Investment thesis
What would need to be true (bull case)
- Market share is at a ten-year high and volume growth outpaces the market, suggesting a consolidated competitive advantage 1.
- Retail free cash flow and the return of capital to shareholders point to cash generation that management considers robust 1.
- The loyalty and retail media platform could open higher-margin revenue streams if it expands successfully 1.
What would break the thesis
- Profit has been limited by high operating costs and price investment, which could keep margins under pressure 1.
- The market is very competitive, and share gains could be reversed if rivals respond aggressively on price 1.
- Operational, security and regulatory risks have increased, and their effects could be costly for the group 1.
What to watch
- Progress of the £1 billion cost savings programme2026/27
- Retail free cash flow against the target of over £1.6 billion2026/27
- Trend in food volume market share relative to competitorsnext 10-K
- Effect of operating cost inflation on marginsQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The group sells food through Sainsbury's stores and non-food through Argos, Habitat and Tu, with the Nectar loyalty platform and Nectar360 retail media capabilities completing the model. The company states its ambition to be the UK's first choice for food and employs around 140000 colleagues across the UK 1. The three-year strategy aims at food volume growth, cost reduction and disciplined capital use.
In fiscal 2026 the company reported food volume market share at its highest level in ten years, growing ahead of the market for the sixth consecutive year 1. Profit was affected by operating cost inflation and investment in competitive position, partly offset by structural savings. Retail free cash flow reached £574 million, and more than £800 million was returned to shareholders through dividends and buybacks 1.
A distinctive feature of the model is its long-term partnership network with British and Irish farmers: more than 2500 farms are backed by contracts of five to ten years, with committed investment of over £5 billion 1. The company also runs food poverty programmes with Comic Relief, to which it donated £8.7 million in fiscal 2026 1.
Segments
Food (Sainsbury's)
The food segment is the main engine of the group, aiming to attract many more customers to choose Sainsbury's for good food. The company gained share, grew volumes ahead of the market and extended its offer through Aldi Price Match alongside Taste the Difference 1.
Argos and non-food
Argos, Habitat and Tu cover non-food, and the strategy aims to transform Argos around its curated range, convenient experience and great value, so that customers buy more complete baskets more often 1.
Loyalty and retail media
The Nectar programme and the Nectar360 platform provide data and retail media capabilities, and the company says it has rolled out Your Nectar Prices across all supermarket checkouts for personalised savings 1.
Market context
The UK grocery market is described by management as highly competitive, with strong pressure on household budgets. The company says it gained customers from competitors across the market, and its volume share reached a ten-year high 1.
The market is also shaped by high operating costs and global economic uncertainty, which make planning harder for farmers and suppliers. If these pressures persist, they could continue to limit margins across the sector 1.
Trends
- Cost-of-living pressuremixed
Household budgets remain under pressure, pushing customers toward lower prices and loyalty schemes. The company has responded with price investment, which could limit margins in the short term 1.
- Changing shopping habitstailwind
Customers are changing how they shop, and demand for healthier food and convenient portions is growing. The company has launched new ranges such as Small But Mighty and High Protein 1.
- High operating cost inflationheadwind
Operating cost inflation was unusually high in fiscal 2026, and structural savings only partly offset it. If the pressure continues, efficiency becomes essential 1.
- Technology and artificial intelligencemixed
Technology, including agentic AI, creates both risks and opportunities for customer experience and productivity. The company treats it as an emerging factor in its strategic planning 1.
Competitive position
The group operates in a highly contested UK grocery market, with rivals including traditional supermarkets and discounters. The company says it has held its price position against its main competitors and gained share from them 1.
Its stated advantage lies in the combination of value, quality, availability and service, supported by the Nectar programme and the Argos network. Competition remains intense, and holding share depends on investing in price without eroding margins 1.
- Tesco
The main rival in UK grocery, with a national store network and loyalty programmes; the source gives no further detail about it.
- Aldi
A discounter the company compares itself with through its Aldi Price Match programme, which shows the price pressure in the market.
- Lidl
Another discounter in UK grocery competing on price and on core ranges.
- Asda
A large British supermarket competing for customers' weekly shopping.
News & filings
In the press
- Sainsbury’s expects challenging run-up to Christmas as households feel squeezeThe Guardian World · 22 Oct 2026 · EN
- Sainsbury’s and Morrisons ‘held talks this year’ on multibillion-pound mergerThe Guardian World · 05 Oct 2026 · EN
- Ex-Sainsbury’s CFO joins AG Barr as chairYahoo Finance — News · 01 Sept 2026 · EN
- Sainsbury’s store pauses AI scanning after false shoplifting accusationThe Guardian World · 17 Aug 2026 · EN
- Sainsbury's staff eject wrong shopper after facial recognition alert – againThe Register · 17 Aug 2026 · EN
- Sainsbury’s to sell Argos to three retail veterans in £120m dealThe Guardian World · 31 Jul 2026 · RO
- Sainsbury’s Agrees to Sell Argos Division to Swift PartnersBloomberg Markets · 31 Jul 2026 · EN
- Sainsbury’s chief says grocery inflation not as bad as feared so farThe Guardian World · 30 Jun 2026 · RO
Annual reports (ESEF)
- Annual report 202611 Jun 2026
- Annual report 202611 Jun 2026
- Annual report 202503 Jun 2025
- Annual report 202503 Jun 2025
Sources
- [1] Annual report, fiscal year ended 2026-02-28 (ESEF) · SEC / J Sainsbury plc · 28 Feb 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.