Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
J Sainsbury plc is a leading British multinational retailer and the holding company for one of the UK's largest grocery chains, founded in 1869 by John James Sainsbury in London. It primarily operates through three main divisions: Sainsbury's Supermarkets, encompassing around 600 supermarkets and over 800 convenience stores focused on high-quality groceries; Retail General Merchandise and Clothing, including the Argos catalogue retailer with general merchandise, electronics, toys, and the Tu clothing brand; and Financial Services via Sainsbury's Bank, offering credit cards, loans, insurance, and travel money. The company emphasizes own-brand product ranges like *by Sainsbury's*, Taste the Difference premium foods, SO Organic, and Free From options for dietary needs, alongside loyalty programs such as Nectar points. With a workforce exceeding 140,000 employees and headquartered in London, J Sainsbury plc plays a pivotal role in the UK consumer staples sector, particularly in food retailing, while extending into non-food and services to serve diverse customer needs across supermarkets, online platforms, and electric vehicle charging under Smart Charge. Its purpose centers on making good food joyful, accessible, and affordable daily, supporting communities through sustainable practices and supplier partnerships.
£3.35
£0.02 (-0.65%)
EOD Jul 3, 2026
Operating margin is thin at 2.83%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.7%, essentially flat. This is a business that needs a catalyst.
Net debt of £5.53B represents 6.0x FCF, leverage limits flexibility.
19.8x earnings, 8.3x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£33.65B
▲ +2.7% YoY
Net Income (TTM)
£393M
▲ +55.3% YoY
Op. Margin
2.83%
ROIC
4.88%
Cash Flow & Balance Sheet
FCF (TTM)
£923M
▲ +1719.3% YoY
Op. Cash Flow (TTM)
£1.50B
▲ +173.8% YoY
Net Debt
£5.53B
Cash & Equiv.
£1.07B
3Y CAGR: +2.2%
3Y CAGR: -13.3%
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At a P/E of 19.8 and a price-to-free-cash-flow of 8.3, J Sainsbury (SBRY.XLON) trades below a two-stage DCF intrinsic value of about £18.05 per share, so at £3.35 the stock looks undervalued (438.9% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, J Sainsbury scores 53/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 7.4%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £18.05 per share for SBRY.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £13.54. At today's £3.35, that puts the stock about 438.9% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
J Sainsbury scores 53 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 2.8% operating margin and a 4.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, J Sainsbury pays a regular dividend of about £0.25 per share per year (typically in quarterly installments), a yield of roughly 7.4% at the current price. That is a payout ratio of about 144.0% of earnings, so the dividend is stretched at this level. J Sainsbury has grown the dividend at roughly 24.2% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For SBRY.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. SBRY.XLON currently trades below its estimated intrinsic value and scores 53/100 on quality (mixed). It also yields about 7.4%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.