Sainsbury Share Price - SBRY
|Share Name||Share Symbol||Market||Type||Share ISIN||Share Description|
|Sainsbury||LSE:SBRY||London||Ordinary Share||GB00B019KW72||ORD 28 4/7P|
|Price Change||Price Change %||Share Price||Bid Price||Offer Price||High Price||Low Price||Open Price||Shares Traded||Last Trade|
|Industry Sector||Turnover (m)||Profit (m)||EPS - Basic||PE Ratio||Market Cap (m)||RN||NRN|
|Food & Drug Retailers||23,775.0||-72.0||-8.7||-||4,924.83|
Sainsbury News, Charts, Forums & Trades
|27/11/2015||19:15||PAPERBR||Bolsa de Londres: Índice FTSE 100 fecha em baixa nesta sexta, 27 de..|
|19/11/2015||09:38||UKREG||Sainsbury(J) PLC Convertible Bond Adjustment|
|19/11/2015||09:38||UKREG||Sainsbury(J) PLC Perpetual Subordinated Convertible Bond Adjustment|
|17/11/2015||13:29||DJN||Aldi, Lidl Market Share Tops 10% for First Time - Survey|
|17/11/2015||09:09||DJFR||Royaume-Uni: La part de marché d'Aldi et Lidl dépasse 10% pour la première..|
|17/11/2015||08:40||ALNC||Sainsbury's Overtakes Asda In UK Grocery Market Share - Kantar|
|17/11/2015||08:06||ALNCF||Alliance News Flash Headline|
|13/11/2015||14:40||ALNC||IN THE KNOW: Barclays Says Sainsbury's Share Price Fall Overdone|
|11/11/2015||17:44||DJN||Sainsbury Reports Slump in Half-Year Profit--Update|
|11/11/2015||14:46||ALNC||IN DEPTH: Sainsbury's Laments Consumers' Spare Cash Not Going To Food|
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|28/11/2015||12:03||***** J Sainsbury plc *****||16,241|
|03/6/2015||11:12||***** ON BID ALERT *****||2,681|
|16/3/2015||10:54||Brent crude now $94..i think sainsburys should cut at least 10p off price petrol||5|
|17/11/2014||08:28||Stop ‘investing’ in lower prices– just reduce them||-|
|14/11/2014||14:07||Sainsbury's 50 day MA still supporting||-|
Sainsbury Top Chat Posts
|loganair: Time to go shopping for Sainsbury’s? By Robert Sutherland Smith: Sainsbury at 253p after the interim results. The traditional quoted food retail sector is still undergoing a big change on an undetermined time scale. On that basis, Sainsbury shares may not look an obvious buy. However, I argue that the shares are attractive when the financial fundamentals are recognised. The shares, after the results of the first half of the current year, are priced at 253p and look pretty bombed out on those fundamentals. Our home grown food retailers (who of course sell more than food) have been in the grip of an insurmountable problem: losing market share to outside competitors who have been increasing their market share. Nothing can be more debilitating for a big business than the loss of scale and economic and financial benefits that come with scale of operations, whilst the competitive interlopers (in this case Lidl and Aldi, the Hengist and Horsa of UK retailing) are increasing and improving theirs. That is a bit like their fighting with one arm tied behind their back. The big question is how long it will take before the now more competitive sector settles down into a new equilibrium. No one knows and it is difficult to guess. Moreover, there are other threats to the current sector players – including the invaders. As our legacy retailers of staple products spot ‘on line’ shopping as a lower cost opportunity, internet operators like Amazon spot ‘on line’ sales of food stuff as a new market opportunity. We are clearly only part way through some pretty momentous changes in this sector; none of which are susceptible to clear visibility and easy prediction and certainly not credible forecasting. However, as always, there is the usual solution of some future consolidation amongst the retreating traditional players like Sainsbury, Tesco, Morrison and Waitrose etc. I suspect that will become a genuine prospect in due course, particularly if Amazon come into the food retailing business – taking even more British Exchequer tax revenue to other taxation jurisdictions no doubt. So, is there a case for buying UK food retailers and Sainsbury in particular? The elementary factors guiding us in answering such a question, include the following: that all companies in their activities are subject to degrees of uncertainty; share prices over time move to discount evolving news, facts and prospects; long term investors with wealth to preserve and hopefully grow, need a spread of investments and risk. That includes food retail shares of course. Coming to Sainsbury specifically, the best argument for investing money in it in comparison with other retail shares is that the share price is now discounting the difficulties. The share price last seen was 253p after the last interim results. About two years ago, the share price was over 400p. What does an investor now get for his or her money? First, a lot of sales revenue; on the basis of last year’s sales annual revenue at £23.5 billion on an equity capitalisation of £4.8 billion; put another way a share price of 253p buying historic sales revenue of an estimated 1,237p per share. Second, a very low price to book valuation. In fact the share price last seen stands at a 13% discount to balance sheet net assets in March. The market capitalisation of Sainsbury equity, currently standing at a value of £4.8 billion, commands an enterprise value which is three and a half times larger. In the balance sheet of 14th March last, total assets were stated as £16.5 billion. Also note that last year’s EBITD (basically profits before interest, taxation and depreciation are charged) amounted to £770 million putting Sainsbury shares on an EBITDA ratio of only 6.2 times on the basis of last year’s figures. Despite the gearing, interest costs were reportedly covered 6 times on an annual basis and 7.4 times on an interim basis. The shares price also stands at only 3.7 times last year’s annual cash and near cash held. Such valuations are strikingly low. Turning to the latest interim results, the disappointing news include the facts that the interim dividend was cut 20%; that there was a loss of market share and thinner margins; that sales fell 2%; and that underlying profits fell by 18%. The company is responding, we are told, by improving its own branded ‘taste the difference’ products, which, against the 2% fall in sales, actually grew by a reported 2% in volume terms. However, the incoming new CEO Mike Coupe talks of cutting costs according to a programme that seems ahead of schedule. The company is also increasing its convenience stores (very much the fashion in the sector) where sales have risen by a reported 11%, on the back of a one fifth increase in the number of such stores. Moreover, the retailer is developing its new Tu clothing offer – sales up 10% over the first half – as well as building its Sainsbury banking operation which is for the moment absorbing transformation cost. At a given point the bank should obviously be making a contribution to net profits. The market is estimating a 17% fall in earnings this year to earnings per share about 22p, putting the shares on a forward estimated price to earnings ratio of just over 11 times. The consensus estimate, at this juncture, is for a further 2% decline in earnings the year after that. Interestingly, it forecasts top line sales revenue for this year as being static at £23.75 billion and pretty close to that again in the following year at an estimated sales revenue figure of £23.52 million. In essence then, the market seems to be calculating that Sainsbury will hold its sales, with a well understood fall in earnings this year but holding on to most of those earnings the following year. The market consensus also estimates that the annual dividend will be reduced twenty per cent in line with the cut in the interim dividend. At the 10.5p dividend payout estimated for this year and next year the estimated annual dividend yield for this year and next is 4.4% p.a. As I always say on such occasions, I am no more gifted in seeing the future than the rest of humanity. However, as a compensation for that lack of prophetic vision, I can identify value in the here and now. Sainsbury at this level shows quite a lot of what we call fundamental value, as indicated above. With the share price at a discount to balance sheet net assets, investors now are arguably being asked to pay nothing for earnings. It will be interesting to see whether at this stage and at these levels of valuation, the bears will be tempted to fold up their short positions together with their tents. Sainsbury is reported to have been one of the most shorted shares in the market. Technically, the shares have been moving sideways for over a year in a trading range of roughly between 220p and 290p. Arguably, the share price looks as though it might have broken out of the earlier downtrend that took it into that range. Have a look and see if that is your interpretation.|
|loganair: Are Tesco and Sainsbury shares a bargain? The share prices of the UK's biggest supermarket chains have collapsed this year so is now the time to buy? asks Questor: UK Supermarket shares have staged something of a recovery during the past month as investors go bargain-hunting and short-selling traders pull back on bets the shares will fall further. However, as yesterday’s results from Sainsbury’s show, there are few reasons to buy or hold these shares at the moment. Questor thinks investors should not be lulled into a false sense of security by the shares staging a comeback in the past month. Marks and Spencer] is up 22pc, Morrisons up 12.4pc, Sainsbury’s up 12.2pc, and Tesco has climbed 2.5pc since October 13. Investors in the big four supermarkets should instead focus on the fundamentals of value, with the dividends being cut, the value of assets underpinning the shares falling and little clarity on profitability going into next year. The gains made during the past month are also something of a mirage. Part of the reason for the shares rising is that short positions against supermarkets are being closed, an activity which requires the shares on loan to be bought. Hedge funds and traders have been betting heavily that supermarket shares would fall this year. Sainsbury’s shares were the most heavily shorted stock in the FTSE 100 in the weeks leading up to the strategic update yesterday. Using Sainsbury’s as an example, a hedge fund could sell the shares without owning them at 365p on January 2, then buy the shares at about 253p yesterday, close the trade and pocket the difference. Traders and hedge funds have made so much money from shorting the shares they are now closing their bets, which will cause the shares to rise. Investors have still been badly burnt this year. Tesco shares have collapsed by 43pc, Morrisons is down 33pc and Sainsury’s share price has fallen by 30pc during the past 12 months. Only Marks and Spencer has bucked the trend with shares up 9.2pc so far this year. There are several reasons why long-term investors should be staying away from UK supermarket shares. The first relates to the most important rule of value investing and that is capital preservation, or what Warren Buffett and Benjamin Graham call a margin of safety. What they are really looking for is that the value of all the cash, stock and property owned by the company is worth more than the current share price. This means that if the company goes out of business tomorrow, equity shareholders would still get something back. Capital would be preserved. There are concerns over the quality of those assets with supermarkets. Their largest asset is property, which is the extensive store portfolio around the country. Those huge out-of-town sheds are only worth something if they generate sales and profits, both of which are currently falling as discounters and convenience stores take customers. Sainsbury’s took a charge of £663m in its results for the first half ended September 27, related to its property portfolio. If the price war worsens and more customers move to the discounters those costs could get worse at Tesco and Morrisons. The second issue is that, when trying to decide the value of a share, you need to obtain a fair feel for future earnings. For this we need to get back to the very basics of what a share is to point out the stark realities facing investors in UK supermarkets. A share gives investors a claim on the future earnings of a company and on the assets once all other creditors such as banks and pension funds have been satisfied. In Sainsbury’s half-year results yesterday it reported a loss before tax of £290m, compared with a £433m profit last year. Net debt increased to £2.38bn, from £2.18bn a year earlier, which means the interest costs will probably rise. The pension deficit remained stubbornly high at £687m, down by £50m from six months earlier. The problem is that market consensus for the year ended March 2015 is that adjusted pre-tax profits will fall by almost £230m to £670m on revenue of about £24.1bn, giving a profit margin of about 3pc. When Justin King arrived at Sainsbury’s, he halved the profit margin from around 3pc to about 1.5pc. Applying the same logic would lead to about £360m in pre-tax profits, or about 16p in earnings per share for the year ended March 2016. A sustainable dividend on those earnings would be about 8p, less than half the current 13.4p estimated full-year dividend. Sainsbury’s also said it will slash the final dividend payment by more than 30pc. The interim was held at 5p and the company said it would pay “a full-year dividend covered by two times adjusted earnings for the next three years”. Given an adjusted full-year earnings forecast of 26.8p, that equates to a dividend of 13.4p, or a final dividend of 8.4p, which is 33pc lower than last year’s 12.5p final. Sainsbury’s has cut spending on new stores to shore up the balance sheet. The company said it would spend between £500m and £550m on capital investment, down from £950m in the past two years. So two of the major props that underpin UK supermarket share prices are looking very shaky: the balance sheet value and the dividends. One of the other factors that investors need in order to value a share is a reliable earnings stream. Share prices are usually valued on a multiple of the earnings, something called the price to earnings, or P/E ratio. At the moment the multiple for UK supermarkets is about nine to 10 times earnings. The problem is that the earnings figure is so volatile. Morrisons is probably the best example here for volatility of profits. From 2010 to 2013, the Bradford-based supermarket group’s pre-tax profits stayed steady at about £850m, giving about 25p in earnings per share. The group then slumped to a loss of £176m this year and is forecast to make about £385m, or 12.7p in earnings per share to January 2015. The profits could be worse next year if a price war breaks out. Applying those earnings to the multiple of 10 times gives you anything between around 250p down to about 127p. Each of the elements that underpin the share price in the UK supermarket sector are far too volatile. Sell.|
|loganair: Why I Won't Be Buying Shares In J Sainsbury By John Kingham:
J Sainsbury along with the other major supermarkets, has been through the wars in recent years. Most people know the story by now, if only because of the more severe and highly publicised problems at Tesco.
J Sainsbury: It's a supermarket
Here's my extremely short version of the backstory for J Sainsbury. The big four UK supermarkets (Tesco, WM Morrison, J Sainsbury and, to a lesser extent, ASDA) had it fairly easy. As long as they did a half decent job, millions of shoppers would continue to shop with them.
But then along came the Financial Crisis and the Great Recession, and shoppers had far fewer pennies to spare and more time on their hands to shop around. The result was a change of shopping habits to more frequent and smaller shopping trips, at local stores that focus on price more than anything else. That played right into the hands of discounters Aldi and Lidl, who fitted this new shopping behaviour like a glove.
The initial response from the big supermarkets was to ignore the discounters, but that was a massive mistake and the big four have been losing market share and struggling to adapt quickly enough ever since.
A highly successful company, until recently:
things had been going very well. The company has a long and unbroken record of dividend payments and, in recent years, revenues, profits and dividends had all been going strongly.
Its statistics for the last 10 years look like this:
•Growth Rate (covering revenues, profits, dividends) of 6.4%, well ahead of the FTSE 100's anaemic 0.8%
•Growth Quality (frequency of revenue/profit/divid|
|loganair: J Sainsbury plc vs Wm. Morrison Supermarkets plc vs Tesco PLC: Which supermarket Will Win In 2015?
2014 has been nothing short of a disaster for investors in J Sainsbury, Wm. Morrison and Tesco. That’s because the share prices of the three stocks have fallen by 28%, 29% and 41% respectively during the course of the year.
Clearly, the reason for the share price falls has been poor operating performance, with a price war and shifting consumer tastes causing the bottom lines of all three companies to decline. Furthermore, forecasting errors at Tesco have also weighed heavily on its share price, which has dented investor confidence in the company to a relatively large degree.
Margin Of Safety:
The market seems to be of the opinion that much worse is still to come for the three supermarkets. This is best evidenced through looking at their current valuations, with Sainsbury’s having a price to book (P/E) ratio of 0.8, and Morrisons’ and Tesco’s P/B ratios being 0.9 and 1.1 respectively. All three of these figures are exceptionally low and, as a result, include a wide margin of safety. In other words, if things do get worse then the share prices of the three companies may not be hit as hard as they have been and, should things fail to get worse, there could be scope for an upward rerating.
In terms of potential catalysts for improved future operational performance (or at least a stabilisation), there seem to be three main areas of hope for investors in the stocks. The first is a shift in consumer tastes away from the no-frills shopping experience of the likes of Aldi and Lidl and toward the better service and selection that major supermarkets offer. This could take place as a result of increases in real disposable income that are expected in 2015, with next year expected to be the first time that wage growth outstrips inflation since the start of the credit crunch.
The second potential catalyst is a slowdown in the rate of growth of discount stores such as Aldi and Lidl. Indeed, the two companies have grown extremely quickly and been hugely successful in recent years. However, they are unlikely to grow at such a vast pace in perpetuity and, inevitably, there will be a slowdown in their rate of growth. This could be because further locations are not as prime as existing sites, and also because of a saturation within the no-frills space.
This leads to the third potential catalyst, which is for Sainsbury’s, Morrisons and Tesco to compete directly with no-frills operators through new ‘discount̵|
|sr2day: ALDI & LIDL sounds like a couple of comedians making the supermarkets cry,but for how long.sure they have been eating in the market share of the main supermarkets, but because of the limited floor space inside and outside their storesI cannot see them gaining much more market share.as far as I am concerned the battle is between the big 2,sbry and tsco.both are suffering at the moment but they will rise again,especially sbry for quality.in the end quality always win.i am not invested at the moment in either tsco or sbry because I feel that with the current trend of falling profits their share price will take a battering over the next twelve months but I need to make sure funds are available when they will become so cheap to resist.i ecpect tsco to go under £1 and sbry aroung £1.50.this will be the time to get back in .|
|loganair: The last few years have seen a seismic shift in the supermarket sector. No-frills operators such as Aldi and Lidl have grabbed a significant amount of market share from the incumbent supermarkets, resulting in increased competition and decreased profitability for the likes of J Sainsbury. As a result, J Sainsbury has seen its share price fall to its lowest level this century, with it hitting a low of 224p just a few weeks ago. Since then, however, sentiment has improved significantly and has meant that the company’s share price has increased by over 20% in the last three weeks. However, this could just be the start of J Sainsbury’s fight back, and it could beat Aldi and Lidl in 2015. Here’s how. Netto: Readers may or may not be familiar with the Netto brand, which is a Danish supermarket that had a presence in the UK until it was bought out by Asda in 2010. J Sainsbury has entered into a joint venture with Netto and plans to open around fifteen stores, mainly in the north of England, as it aims to appeal to a different price point of customer. Indeed, the Netto brand will aim to win over shoppers who have deserted the major supermarkets in favour of Aldi and Lidl, and will offer a no-frills shopping experience. Just as Aldi and Lidl offer mostly their own brands, Netto will do the same but will also sell branded favourites too. The focus will be on efficiency, so staff numbers will be kept to a minimum and all available space will be used to stock as many items as possible. The first Netto store is set to open in Leeds and, as mentioned, subsequent stores will be opened in the north of England. This makes sense for J Sainsbury, since its store footprint is mainly in the south of England, so it is unlikely to ‘tread on its own toes’. Furthermore, the Netto brand allows J Sainsbury to go head-to-head with the likes of Aldi and Lidl without destroying the value of its brand. J Sainsbury is currently viewed as a mid to upper price point operator, and Netto allows it to maintain such a position moving forward. Looking Ahead: Clearly, there is no guarantee that the Netto brand will be successful. However, it has the same ingredients as Aldi and Lidl, so it should at least be able to hold its own in the no-frills, discount space. This could mean that things do not get much worse for J Sainsbury in the near term, with regard to losing market share and seeing a decline in its profitability. Furthermore, even a stabilisation of its performance could lead to considerable share price gains. With shares in J Sainsbury trading on a price to earnings (P/E) ratio of just 10.8, they are still very cheap. In addition, a yield of 4.7% remains highly lucrative and is well covered by earnings at 1.9 times. Therefore, with a large margin of safety included in the current share price and the potential for better sales figures moving forward (aided considerably by the Netto joint venture), J Sainsbury could have a prosperous 2015 and beat the likes of Aldi and Lidl.|
|buys in jars: I do not agree 1) the NAV is much higher than the conversion price. dont forget these guys have invested £23 billion in the business since 1987, but the share price is still the same. 2) they are using this NAV to attract new shareholders, diluting the existing shareholders 3) the money is being spent on this crazy pricing war, driving margins to the bone 4) the share price has plunged 10% since they launched the convertibles 5) the terms on the previous convertibles is much worse, as the price is adjusted downwards, every time there is a dividend yielding more than 1% 6) why do they need to raise money if they are cutting costs and investment by £1 billion?|
|loganair: By Harvey Jones - The sun is out and Britons are shopping again. UK retail sales rose 1.2% in April, the fastest pace since last November, and far higher than the 0.4% the market expected.
At first glance I thought that would be good news for ailing supermarket giants Tesco, J Sainsbury and WM Morrison.
But a closer look at the figures shows that the real growth was in clothing, footwear and textiles, which jumped 5.2% compared to March, the biggest rise for four years.
Every retail sector showed growth with one notable exception: food.
Food Inglorious Food:
Food sales actually fell 0.1% in April, as supermarkets continue to suffer from weak demand.
The figures follows Asda reporting its worst quarterly sales in more than five years, with its chief executive complaining that customers were “not yet cash-confident”|
|buys in jars: this was 11 years ago and the share price was exactly the same as it is today
|loganair: We used to think of the supermarkets rather like we think of Apple: a remorseless trend of expansion, growing profits and a growing share price. The more smartphones Apple builds, the more they sell. The possibilities seem almost infinite. No tree grows to the sky: But no tree grows to the sky; eventually the tree’s height is countered by the pull of gravity. Growth always has its limits. And so it has proved with the supermarkets. The supermarkets are now starting to think less like Apple, and more like OPEC. They have realised that, while retail demand in the UK has remained largely static, supermarket supply has been increasingly linearly all the way since the 1950s. It’s been a simple process. Each decade the supermarkets have built more shops, and they have increased their sales, and their profits. And their share prices trended higher and higher. This continued until about the time of the Credit Crunch, when something interesting happened. Ever since the Recession the supermarkets have still been expanding, yet they have no longer been growing sales, and their profits have begun to fall. The share prices of these retail giants have begun to trend downwards. A long road to recovery: This year the supermarkets’ results have been terrible. It’s as if they have hit a brick wall. People initially talked about Tesco having difficulties, but we can now see that Tesco, Sainsbury, Morrisons, Asda and even Waitrose have all been suffering. This thing is happening across the board. Until now I have thought of the supermarkets as contrarian plays and turnaround prospects; my view was that their difficulties were just bumps in the road. But these results have made me think that there is something more fundamental at work here. Some investment experts have started to talk about the supermarkets as value traps. This sounds very harsh. But is there the possibility these experts may be right? I am certainly holding off from investing in this sector, no matter how low share prices have already fallen. The balance between supply and demand has been lost. The supermarkets need to shift their focus from volume to profitability. In the past, increasing volume meant increasing profits. In the future, it will mean decreasing profits. As the economy improves, retail receipts will start to rise. This gives the supermarkets hope, but the road to recovery will be long. I think it is still much too early to invest. Investing in stocks and shares is not easy. At one point the supermarkets looked like a sure thing; yet now investors seem to be steering clear.|
Sainsbury Most Recent Trade
|Trade Type||Trade Size||Trade Price||Trade Date||Trade Time||Currency|
|7,105||256.10||27 Nov 2015||17:10:17||GBX|