J Sainsbury plc
J Sainsbury plc Fundamental Analysis
J Sainsbury plc (JSNSF) shows weak financial fundamentals with a PE ratio of 20.43, profit margin of 1.14%, and ROE of 6.12%. The company generates $33.2B in annual revenue with weak year-over-year growth of 0.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JSNSF's fundamental strength across five key dimensions:
Efficiency Score
WeakJSNSF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJSNSF trades at attractive valuation levels.
Growth Score
WeakJSNSF faces weak or negative growth trends.
Financial Health Score
ModerateJSNSF shows balanced financial health with some risks.
Profitability Score
WeakJSNSF struggles to sustain strong margins.
Key Financial Metrics
Is JSNSF Expensive or Cheap?
P/E Ratio
JSNSF trades at 20.43 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, JSNSF's PEG of -4.93 indicates potential undervaluation.
Price to Book
The market values J Sainsbury plc at 1.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.79 times EBITDA. This is generally considered low.
How Well Does JSNSF Make Money?
Net Profit Margin
For every $100 in sales, J Sainsbury plc keeps $1.14 as profit after all expenses.
Operating Margin
Core operations generate 2.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.12 in profit for every $100 of shareholder equity.
ROA
J Sainsbury plc generates $2.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
J Sainsbury plc generates limited operating cash flow of $1.78B, signaling weaker underlying cash strength.
Free Cash Flow
J Sainsbury plc produces free cash flow of $1.17B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.53 in free cash annually.
FCF Yield
JSNSF converts 15.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How JSNSF Stacks Against Its Sector Peers
| Metric | JSNSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.43 | 21.23 | Neutral |
| ROE | 6.12% | 1142.00% | Weak |
| Net Margin | 1.14% | -3620.00% (disorted) | Weak |
| Debt/Equity | 0.91 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.56 | 2.54 | Weak Liquidity |
| ROA | 2.02% | -607926.00% (disorted) | Weak |
JSNSF outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews J Sainsbury plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.20%
Industry Style: Defensive, Dividend, Low Volatility
GrowingEPS CAGR
50.81%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
50.58%
Industry Style: Defensive, Dividend, Low Volatility
High Growth