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Sainsbury (J) PLC SBRY

Morningstar Rating
GBX 269.00 0.00 (0.00%)
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Company Report

Sainbsury's Regains Momentum Through Enhanced Value Perception

While Sainsbury’s has historically distinguished itself from its peers with a higher-quality (premium-priced) food offering, it has been underperforming its peers due to a lack of focus and responsiveness to an increasingly value-oriented U.K. consumer base and a below-average value perception. Recent investments in lower prices have reverted trends with the grocer now in a solid position in the very competitive U.K. grocery market.

Price vs Fair Value

SBRY is trading at a 11% discount.
Price
GBX 269.00
Fair Value
GBX 477.00
Uncertainty
Medium
1-Star Price
GBX 841.79
5-Star Price
GBX 698.30
Economic Moat
Zktz
Capital Allocation
Dzxytgct

Bulls Say, Bears Say

Bulls

Sainsbury's quality perception is consistently higher than that of its Big Four peers.

Bears

Sainsbury's leases the majority of it's stores, which leaves it exposed to inflationary pressures.

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News

Trading Information

Previous Close Price
GBX 269.00
Day Range
GBX 268.40273.20
52-Week Range
GBX 243.80311.16
Bid/Ask
GBX 219.00 / GBX 279.60
Market Cap
GBX 639.28 Bil
Volume/Avg
4.6 Mil / 6.8 Mil

Key Statistics

Price/Earnings (Normalized)
11.99
Price/Sales
0.19
Dividend Yield (Trailing)
4.87%
Dividend Yield (Forward)
4.87%
Total Yield
5.12%

Company Profile

Founded in 1869, Sainsbury's is the second-largest U.K. grocery chain with around 16% market share. It operates around 600 supermarkets and 800 convenience stores, all in the U.K. The company has diversified away from core food by selling clothing, telecom equipment, and other nonfood items. In September 2016, it took a step further into nonfood retailing with the purchase of Home Retail Group, operating the Habitat and Argos chains (general merchandise and electronics stores), for GBP 1.10 billion. It has been selling products online since 1997.
Sector
Consumer Defensive
Industry
Grocery Stores
Stock Style Box
Mid Value
Total Number of Employees
152,663

Competitors

Valuation

Metric
SBRY
WMT
TSCO
Price/Earnings (Normalized)
11.9927.2011.48
Price/Book Value
0.865.781.69
Price/Sales
0.190.750.30
Price/Cash Flow
3.6114.435.67
Price/Earnings
SBRY
WMT
TSCO

Financial Strength

Metric
SBRY
WMT
TSCO
Quick Ratio
0.520.200.57
Current Ratio
0.720.830.74
Interest Coverage
1.478.943.16
Quick Ratio
SBRY
WMT
TSCO

Profitability

Metric
SBRY
WMT
TSCO
Return on Assets (Normalized)
1.96%6.48%3.67%
Return on Equity (Normalized)
6.95%20.75%13.64%
Return on Invested Capital (Normalized)
4.94%12.00%7.70%
Return on Assets
SBRY
WMT
TSCO
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