FINANCIAL REPORT

Financial Report

Tear sheet Sainsbury PLC

Income statement in GBP

Every year J Sainsbury PLC had little change in net income (from 598.00m to 602.00m) despite revenues that rose 4.53% from 22.29bn to 23.30bn. A contributing factor has been an increase in the selling, general and administrative costs as a percentage of sales from 1.88% to 1.98%.

REVENUE

Gross margin

5.62%

Net profit margin

2.65%

Operating margin

3.84%

NET INCOME

Return on assets

4.93%

Return on equity

11.11%

Return on investment

6.74%

Growth rates in GBP

Year on year, growth in dividends per share increased 3.73% while earnings per share excluding extraordinary items fell by 0.14%. The positive trend in dividend payments is noteworthy since only some companies in the Retail (Grocery) industry pay a dividend. Additionally when measured on a five year annualized basis, both dividend per share and earnings per share growth ranked in-line with the industry average relative to its peers.

DIVIDEND PER SHARE

Div yield(5 year avg)

0.05%

Div growth rate (5 year)

6.83%

Payout ratio (TTM)

50.71%

EARNINGS PER SHARE

EPS growth(5 years)

11.07

EPS (TTM) vs TTM 1 year ago

2.50

Cash flow in GBP

In 2013, cash reserves at J Sainsbury PLC fell by 235.00m. However, the company earned 981.00m from its operations for a Cash Flow Margin of 4.21%. In addition the company used 862.00m on investing activities and also paid 354.00m in financing cash flows.

CASH FLOW

Cash flow per share

0.5945

Price/Cash flow per share

6.67

CASH

Book value per share

3.04

Tangible book value per share

2.95

Balance sheet in GBP

J Sainsbury PLC has a Debt to Total Capital ratio of 32.98%, a lower figure than the previous year's 47.21%.

TOTAL ASSETS

Current ratio

0.5849

Quick ratio

0.291

TOTAL DEBT

Total debt/total equity

0.4921

Total debt/total capital

0.3298

Introduction

Sainsbury plc, in collaboration with its subsidiaries, operates in the United Kingdom in t grocery and retailing industry. The company operates on three domains which consist of Retailing, property investments and financial services. It operates various formats of stores, which includes supermarkets and convenience that provides different food and non-food goods and services. The company also operates general merchandise and online grocery operations. It operates 1,106 stores, which includes 583 supermarkets and 523 convenience stores. In addition the company also possesses interests in freehold and long leasehold properties, as well as properties within joint venture arrangements. Further, it provides insurance, credit cards, savings, and loans; energy efficiency advice for its customer's homes; and a selection of movies, music, books, games, and other entertainment products. The company was founded in 1869 and its headquarters is based in London, United Kingdom.

Performance and news analysis

The performance of Sainsbury against the major industry competitors can be described as satisfactory. The share price of Sainsbury was 409 against that of Tesco PLC which had 354.50. It was closely followed by Wm Morrison Supermarkets PLC whose share price was 267.30. The performance of Sainsbury against industry competitor is shown below:

Top Grocery Stores Companies by Market Cap

Company

Symbol

Price

Change

Market Cap

P/E

Tesco PLC

TSCO.L

354.50

0.46%

28.58bn

N/A

Sainsbury (J) PLC

SBRY.L

409.00

1.35%

7.72bn

1,274.14

Wm Morrison Supermarkets PLC

MRW.L

267.30

0.41%

6.21bn

1,073.49

Tesco PLC

TSCDYN.MX

232.00

0.14%

623.38bn

N/A

Caddo Group PLC

OCDO.L

427.40

1.09%

2.46bn

N/A

Companhia Brasileira de Distribuicao

CBDN.MX

638.48

0.99%

168.61bn

343.27

In terms of market capitalisation, the industry leader is Tesco plc which has a net worth of GBP28.58 billion. Sainsbury ranks second in market capitalisation with a net worth of GBP7.72 billion and ranks second out of the big fifty ...