J Sainsbury plc SBRY.L
Composite 52/100; the shares have moved about 21% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 40/100 — a slight mark against it.
Income ranks 85/100 — a strong point in its favour. Valuation ranks 72/100 — a moderate point in its favour. Momentum ranks 56/100 — a slight point in its favour.
Balance-sheet strength ranks 40/100 — a slight mark against it. Quality ranks 40/100 — a slight mark against it. Growth ranks 47/100 — a slight mark against it.
What the company does J Sainsbury plc operates supermarkets, convenience stores, and online channels under brands like Sainsbury’s, Argos, and Habitat, alongside financial services via Sainsbury’s Bank. The group generates most revenue from food retailing, with general merchandise and clothing contributing via Argos and Tu.
Key financials Reported ROE 6.4%, ROA 3.0%, and ROCE 15.7% with net margins at 1.2%. Revenue grew 2.6% while EPS rose 29.9%. Leverage is high (Debt/Equity 1.07) but interest coverage stands at 3.05x and net debt/EBITDA at 3.79x.
Stock health Sainsbury’s scores Weak quality (41.6) but attractive valuation (69.6) and high income (78.5). Momentum is strong over 3m 9.57%, 6m 13.24%, and 12m 18.69%, though RSI(14) at 69.80 signals overbought conditions.
Price vs fair value The stock trades at a **discount of 1.00%** to our fair-value estimate of 361.81 and at a **PREMIUM of 3.16%** to the 12-month target of 347.07. - Argos sale for £120m crystallises a decade after the £1.8bn acquisition, refocusing capital on core food growth (Pitchbook). - Analysts highlight the strategic shift and potential deleveraging benefits (MarketBeat). - Valuation metrics (PEG 0.46, EV/EBITDA 6.01) remain supportive versus peers. - Weak quality score (41.6) and high leverage (Debt/Equity 1.07) cap upside.
Looking forward Forward P/E of 14.86 and FCF yield of 10.6% suggest valuation support, but execution risk remains tied to food margin recovery and Argos exit integration. Analysts expect 12-month target 347.07, implying limited near-term upside from current levels.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.