Is Sainsbury (SBRY) Halal?

LSE Consumer Defensive United Kingdom $7.4B
✗ NOT HALAL
Confidence: 90/100
Sainsbury (SBRY) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 87.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Sainsbury operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from February 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 87.2%
/ 30%
44.7%
/ 30%
2.1%
/ 30%
0.2%
/ 5%
✗ NOT HALAL
DJIM 87.2%
/ 33%
44.7%
/ 33%
2.1%
/ 33%
0.2%
/ 5%
✗ NOT HALAL
MSCI 26.8%
/ 33%
13.7%
/ 33%
0.6%
/ 33%
0.2%
/ 5%
✓ HALAL
S&P 87.2%
/ 33%
44.7%
/ 33%
2.1%
/ 33%
0.2%
/ 5%
✗ NOT HALAL
FTSE 26.8%
/ 33%
13.7%
/ 33%
0.6%
/ 50%
0.2%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
18.4
Forward: 13.2
EPS
$0.18
Dividend Yield
416.0%
Payout: 74.3%
P/B Ratio
119.0
EV/EBITDA
8.2
EV: $13.3B
Revenue
$32.8B
Growth: 2.8%
Beta
1.2
Average volatility
Current Ratio
0.6

Profitability

Gross Margin 7.0%
Operating Margin 2.8%
Net Margin 1.0%
Return on Equity (ROE) 6.6%
Return on Assets (ROA) 3.1%

Cash Flow & Balance Sheet

Operating Cash Flow$1.4B
Free Cash Flow$505M
Total Debt$6.6B
Debt-to-Equity102.3
Current Ratio0.6
Total Assets$24.6B

Price & Trading

Last CloseGBp 330.80
50-Day MAGBp 337.62
200-Day MAGBp 320.62
Avg Volume7.8M
Beta1.2
52-Week Range
GBp 223.40
GBp 370.73

About Sainsbury (SBRY)

CEO
Mr. Simon John Roberts
Employees
141,517
Sector
Consumer Defensive
Industry
Grocery Stores
Country
United Kingdom
Exchange
LSE
Market Cap
$7.4B
Currency
GBp

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 Retail and Financial Services segments. The company sells food, household, general merchandise, clothing, and fuel through convenience stores and supermarkets, as well as online channels. It also provides insurance services. The company offers its products under the Argos, Habitat, Tu, Smart Charge, Nectar, Nectar360, and Sainsbury's Bank brands. The company was founded in 1869 and is based in London, the United Kingdom.

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Frequently Asked Questions

Is Sainsbury (SBRY) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Sainsbury is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Sainsbury's debt ratio?

Sainsbury's debt ratio is 87.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 26.8%.

What are Sainsbury's key financial metrics?

Sainsbury has a market capitalization of $7.4B, trailing P/E ratio of 18.4, and revenue of $32.8B. The company maintains a gross margin of 7.0% and a net margin of 1.0%. Return on equity stands at 6.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.