Latest news with #SBRY
Yahoo
11-05-2025
- Business
- Yahoo
Does the Sainsbury's or Tesco share price offer the best value?
The Tesco (LSE:TSCO) share price is up 22% over the past 12 months while Sainsbury's (LSE:SBRY) shares are flat. In fact, there's been quite a divergence in fortunes in recent years, with the Tesco share price almost doubling from lows three years ago. However, which stock is better value for investors today? Here's some metrics that may help us make the right investing decisions. Looking at the price-to-earnings (P/E) ratio, Tesco's valuation shows a steady decline from 16 times earnings in 2025 to 13.4 times by 2027. This decrease aligns with Tesco's consistent earnings per share (EPS) growth, rising from 23.5p in 2025 to 28.3p in 2027. By contrast, Sainsbury's P/E ratio starts higher at 13.6 times for the forward year (2026) but falls sharply to 11.4 times by 2028. This data suggests that Sainsbury's is cheaper but may be growing at a slightly slower rate. It's also worth noting that the forward reporting periods are slightly different. Tesco's revenue is expected to grow steadily from £69.9bn in 2025 to £73.7bn in 2027, reflecting consistent sales expansion. Sainsbury's revenue also increases, pretty much at the same pace in percentage terms. It's expected to move from £33.1bn in 2025 to £35bn by 2028. While both supermarkets are growing, Tesco's scale gives it a clear advantage in absolute sales, nearly doubling Sainsbury's revenue throughout the period. In terms of market share, Tesco remains the UK's leading grocer with 27.8% of the market as of April. Sainsbury's holds a respectable second place with 15.3%. Both retailers have seen slight gains compared to the previous year, with Tesco up from 27.3% and Sainsbury's from 15.2%. This stability highlights Tesco's dominant position and Sainsbury's steady hold on its segment of the market. The dividend yield tells an interesting story. Sainsbury's offers a higher yield, rising from 5.1% in 2026 to 5.61% in 2028, compared to Tesco's more modest 3.58% to 3.98% over 2025 to 2027. However, Sainsbury's payout ratio's higher, starting at 69% in 2026 and falling to around 64% by 2028. Tesco's payout ratio's more conservative, around 58% in 2025 and just over 53% by 2027, suggesting a more balanced approach to rewarding shareholders while retaining earnings for growth. When it comes to the balance sheet, Tesco carries a heavier debt load. Net debt's expected to come in around £9.45bn in 2025, rising slightly to nearly £11bn by 2027. Sainsbury's net debt is lower, starting at £5.01bn in 2026 and rising modestly to £5.48bn by 2028. Both companies maintain manageable debt levels relative to their earnings and capitalisation. In summary, there's little to separate the two overall. But in a deepening price war, scale matters. Tesco's size gave it the edge during the cost-of-living crisis, and that advantage is likely to persist. However, personally, I believe both are worth considering. I'm keeping my powder dry for now though. The post Does the Sainsbury's or Tesco share price offer the best value? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has no position in any of the shares mentioned. The Motley Fool UK has recommended J Sainsbury Plc and Tesco Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
24-04-2025
- Business
- Business Insider
RBC Capital Remains a Buy on J Sainsbury plc (SBRY)
RBC Capital analyst Manjari Dhar maintained a Buy rating on J Sainsbury plc (SBRY – Research Report) on April 22 and set a price target of p280.00. The company's shares closed yesterday at p258.40. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks, Dhar is ranked #7480 out of 9371 analysts. In addition to RBC Capital, J Sainsbury plc also received a Buy from Goldman Sachs's Richard Edwards in a report issued yesterday. However, on the same day, Kepler Capital downgraded J Sainsbury plc (LSE: SBRY) to a Hold. SBRY market cap is currently £6.08B and has a P/E ratio of 17.59. Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SBRY in relation to earlier this year.
Yahoo
04-04-2025
- Business
- Yahoo
Is Now An Opportune Moment To Examine J Sainsbury plc (LON:SBRY)?
J Sainsbury plc (LON:SBRY), might not be a large cap stock, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£2.77 and falling to the lows of UK£2.31. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether J Sainsbury's current trading price of UK£2.39 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at J Sainsbury's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. J Sainsbury appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 31.58x is currently well-above the industry average of 14.39x, meaning that it is trading at a more expensive price relative to its peers. Another thing to keep in mind is that J Sainsbury's share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards the levels of its industry peers over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it's there, it may be hard for it to fall back down into an attractive buying range again. Check out our latest analysis for J Sainsbury Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. J Sainsbury's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has well and truly priced in SBRY's positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe SBRY should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on SBRY for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for SBRY, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 2 warning signs for J Sainsbury (of which 1 makes us a bit uncomfortable!) you should know about. If you are no longer interested in J Sainsbury, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
