# J Sainsbury plc (SBRY.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Defensive / Food & Staples Retailing. Price 344p, market value 7.5 billionp.

## Valuation
- **P/E (trailing): 19.1×** (5-yr avg 2432.1×, 3-yr avg 2723.7×). J Sainsbury plc trades at 19.1× trailing earnings, well below its own five-year average of 2432.1×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 12.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.81**. A PEG of 0.81 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.8×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 3.0×**. Enterprise value is 3.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 43.5%** (5-yr avg 0.2%). Free cash flow equals 43.5% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.2%**. The inverse of the P/E: 5.2% of the price is earned each year.

## Profitability
- **Gross margin: 6.6%**. J Sainsbury plc keeps 6.6% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 2.7%**. 2.7% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 1.1%**. 1.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.2%**. 6.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.3%**. Return on all capital, debt included, is 10.3%.
- **Return on assets: 3.3%**. Each dollar of assets produces 3.3% of profit.

## Growth
- **Revenue growth (1 yr): 2.5%** (3-yr 2.2%/yr, 5-yr 3.0%/yr). Revenue grew 2.5% over the last year, against 3.0% a year compounded over five years.
- **EPS growth (1 yr): 16.0%** (3-yr 24.5%/yr). Earnings per share rose 16.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -10.6%/yr**. Free cash flow has compounded at -10.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.07**. Debt is 1.07 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.3×**. It would take 1.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.8×**. Operating profit covers interest 2.8×, thin but manageable.
- **Current ratio: 0.56** (quick 0.24). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.56**. A Z-score of 2.56 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.01%** (0p per share, trailing). J Sainsbury plc yields 4.01%, an income-level yield.
- **Payout ratio: 147%** (27% of free cash flow). The dividend exceeds earnings (147% payout), though free cash flow still covers it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Dividend growth (5 yr): 18.8%/yr** (1-yr 89.3%). The dividend has compounded at 18.8% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 11.2%**. Dividends plus net buybacks return 11.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (14 analysts). 14 analysts cover J Sainsbury plc; the consensus is buy, with an average price target of 357p (+4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 9.2%** (YTD 5.0%, 3-mo 13.0%). The shares are up 9.2% over twelve months including dividends.
- **From 52-week high: -9.6%** (17.0% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 0.53** (volatility 21%). Beta of 0.53 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SBRY.L · Page: https://foliofundamentals.com/stocks/sbry.l

Not investment advice.