J Sainsbury plc (SBRY) is a leading grocery stores business based in the UK. Sainsbury's is listed on the London Stock Exchange (LSE) and employs 111,900 staff. All prices are listed in pence sterling.
|52-week range||165.1138p - 250.7p|
|50-day moving average||230.1588p|
|200-day moving average||204.9571p|
|Wall St. target price||317p|
|Dividend yield||0.07p (2.64%)|
|Earnings per share (TTM)||5.8p|
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Valuing Sainsbury's stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Sainsbury's's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Sainsbury's's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 35x. In other words, Sainsbury's shares trade at around 35x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Sainsbury's's P/E ratio is best considered in relation to those of others within the grocery stores industry or those of similar companies.
Sainsbury's's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.2662. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Sainsbury's's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Sainsbury's's PEG ratio in relation to those of similar companies.
Sainsbury's's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £1.7 billion.
The EBITDA is a measure of a Sainsbury's's overall financial performance and is widely used to measure a its profitability.
To put Sainsbury's's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||£28.8 billion|
|Operating margin TTM||3.55%|
|Gross profit TTM||£2.3 billion|
|Return on assets TTM||2.31%|
|Return on equity TTM||0.15%|
|Market capitalisation||£5.5 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Sainsbury's.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 21.82
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Sainsbury's's overall score of 21.82 (as at 01/01/2019) is pretty good – landing it in it in the 22nd percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Sainsbury's is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Sainsbury's's total ESG risk score against those of similar companies.
Environmental score: 6.6/100
Sainsbury's's environmental score of 6.6 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Sainsbury's is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 8.98/100
Sainsbury's's social score of 8.98 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Sainsbury's is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 6.74/100
Sainsbury's's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Sainsbury's is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Sainsbury's scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Sainsbury's has, for the most part, managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||21.82|
|Total ESG percentile||22.08|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||2|
We're not expecting Sainsbury's to pay a dividend over the next 12 months. However, you can browse other dividend-paying shares in our guide.
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Sainsbury's's shares were split on a 7:8 basis on 19 July 2004. So if you had owned 8 shares the day before before the split, the next day you'd have owned 7 shares. This wouldn't directly have changed the overall worth of your Sainsbury's shares – just the quantity. However, indirectly, the new 14.3% higher share price could have impacted the market appetite for Sainsbury's shares which in turn could have impacted Sainsbury's's share price.
Over the last 12 months, Sainsbury's's shares have ranged in value from as little as 165.1138p up to 250.7p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Sainsbury's's is 0.3882. This would suggest that Sainsbury's's shares are less volatile than average (for this exchange).
To put Sainsbury's's beta into context you can compare it against those of similar companies.
J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom. It operates through three segments: Retail ? Food, Retail ? General Merchandise and Clothing, and Financial Services. The company operates various store formats, including convenience stores and supermarkets. It is also involved in online grocery and general merchandise operations. As of March 7, 2020, the company operated 882 Argos stores and 281 collection points, as well as 16 Habitat stores. In addition, the company offers financial services, such as credit cards, and travel money and personal loans, as well as home, car, pet, and life insurance. J Sainsbury plc was founded in 1869 and is headquartered in London, the United Kingdom.
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