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JB Hi-Fi Limited (AU:JBH)
:JBH

JB Hi-Fi Limited (JBH) AI Stock Analysis

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AU

JB Hi-Fi Limited

(Sydney:JBH)

Rating:75Outperform
Price Target:
AU$126.00
â–²(15.58%Upside)
JB Hi-Fi's strong financial performance and robust technical momentum are significant positive factors contributing to its stock score. Despite some pressure on net profit margins and operational efficiency, the company's stable cash flow and solid balance sheet offer resiliency. The high P/E ratio suggests the stock may be overvalued, slightly dampening the overall score.
Positive Factors
Sales Growth
The stock showed strong trading performance with July 2024 comp sales of +5.2% for JBH AU and +2.7% for TGG, indicating robust consumer demand.
Sales Performance
JBH reported strong 2H24 results, with sales up 1.9% year over year, benefiting from a beat in JBH AU gross profit margins.
Negative Factors
Business Costs
The AI-led tech replacement cycle will not be sufficient to offset approximately 4% growth in the cost of doing business, leading to further pressure on margins.
Competition
Intensifying competition from Amazon and Officeworks, with Amazon hosting its longest Prime Day in Australia, could pressure JBH's market share.
Market Challenges
Other categories including TVs, appliances, and software will see more challenged growth due to household spending pressure.

JB Hi-Fi Limited (JBH) vs. iShares MSCI Australia ETF (EWA)

JB Hi-Fi Limited Business Overview & Revenue Model

Company DescriptionJB Hi-Fi Limited, together with its subsidiaries, retails home consumer products. The company operates through three segments: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys. It provides computers, such as laptops, desktop PCs, iPads, tablets, eBook readers, monitors and projectors, printers and ink, storage devices, keyboards and mouse, computer accessories, as well as software, and home internet and wi-fi products; televisions; headphones, speakers, and audio devices; and smart home appliances. The company also offers mobile phones; gaming devices, such as Xbox, Nintendo, PlayStation, and PC and retro gaming devices; music and vinyl products; movies and TV shows; and collectibles and merchandise, including apparel, card and board games, and jigsaw puzzles. In addition, it provides content creator gears for vloggers and influences, game streamers, podcasters, and music producers and DJs; cameras; drones and e-scooters; and fitness, health, and wellbeing products, such as smart watches, fitness trackers, massagers, health monitors, air treatment devices, sleep solutions, smart drink bottles, as well as shavers and trimmers, and hair and oral care products. Further, the company offers home appliances consisting of washers and dryers, fridges and freezers, dishwashers, vacuuming and cleaning products, small kitchen appliances, microwaves, coffee and beverages machines and accessories, and heating, cooling, and air treatment products. Additionally, it provides information technology and consulting services. As of June 30, 2022, the company sold its products through branded retail store network comprising 199 JB Hi-Fi/JB Hi-Fi Home stores in Australia; 14 JB Hi-Fi stores in New Zealand; and 106 The Good Guys stores in Australia, as well as online. JB Hi-Fi Limited was founded in 1974 and is based in Southbank, Australia.
How the Company Makes MoneyJB Hi-Fi Limited generates revenue primarily through the sale of consumer electronics and home appliances across its retail stores and online platform. The company's key revenue streams include sales from various product categories such as audio-visual equipment, information technology, telecommunications, and home appliances. Additionally, JB Hi-Fi benefits from selling music, movies, and video games, contributing to its earnings. The company also offers services such as product insurance and extended warranties, further enhancing its revenue. Strategic partnerships with major electronics and technology brands allow JB Hi-Fi to offer a diverse range of products, often at competitive prices, which drives customer traffic and sales. The company's focus on maintaining a strong retail presence, both in physical stores and online, is a significant factor in its ability to generate consistent revenue.

JB Hi-Fi Limited Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
9.59B9.63B9.23B8.92B7.92B
Gross Profit
2.14B2.18B2.08B1.98B1.69B
EBIT
725.20M836.40M854.70M796.50M552.80M
EBITDA
893.60M995.70M1.01B955.60M696.80M
Net Income Common Stockholders
438.80M524.60M544.90M506.10M302.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
317.70M177.30M125.60M263.20M251.50M
Total Assets
3.49B3.49B3.16B3.15B3.15B
Total Debt
657.40M655.10M604.40M631.30M741.60M
Net Debt
339.70M477.80M478.80M368.10M490.10M
Total Liabilities
1.93B2.08B1.88B1.84B2.05B
Stockholders Equity
1.56B1.42B1.28B1.31B1.11B
Cash FlowFree Cash Flow
678.10M644.40M569.80M501.00M938.20M
Operating Cash Flow
752.60M716.40M627.40M558.70M981.30M
Investing Cash Flow
-74.40M-71.70M-57.40M-57.70M-43.00M
Financing Cash Flow
-537.90M-593.10M-707.20M-489.30M-805.80M

JB Hi-Fi Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price109.02
Price Trends
50DMA
101.39
Positive
100DMA
97.82
Positive
200DMA
91.01
Positive
Market Momentum
MACD
2.42
Positive
RSI
60.60
Neutral
STOCH
59.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:JBH, the sentiment is Positive. The current price of 109.02 is above the 20-day moving average (MA) of 106.85, above the 50-day MA of 101.39, and above the 200-day MA of 91.01, indicating a bullish trend. The MACD of 2.42 indicates Positive momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 59.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:JBH.

JB Hi-Fi Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUJBH
75
Outperform
AU$11.92B25.9129.07%3.24%6.21%0.20%
AUWES
75
Outperform
$95.96B36.9130.35%2.42%3.04%3.65%
AUHVN
73
Outperform
$6.80B15.759.58%4.48%1.77%15.57%
62
Neutral
$6.88B11.322.95%3.87%2.70%-24.57%
AUMYR
61
Neutral
AU$1.18B24.558.55%5.81%-2.43%-49.64%
AUDMP
54
Neutral
$2.01B121.642.09%5.04%-8.04%-54.44%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:JBH
JB Hi-Fi Limited
109.02
51.73
90.29%
AU:HVN
Harvey Norman Holdings Ltd
5.46
1.22
28.86%
AU:WES
Wesfarmers Limited
84.15
18.48
28.14%
AU:MYR
Myer Holdings Limited
0.69
0.07
10.66%
AU:DMP
Domino's Pizza Enterprises Limited
21.30
-16.03
-42.94%

JB Hi-Fi Limited Corporate Events

JB Hi-Fi Limited Reports Strong Q3 FY25 Sales Growth
May 6, 2025

JB Hi-Fi Limited reported continued sales momentum for Q3 FY25, despite operating in a challenging and competitive retail market. The company remains focused on maintaining high customer service standards as it approaches the end of the financial year, which is a critical trading period. Sales growth was observed across its operations in Australia and New Zealand, as well as through its subsidiary, The Good Guys, and its e&s segment.

JB Hi-Fi Announces Change in Substantial Holder Interests
Apr 3, 2025

JB Hi-Fi Limited has announced a change in the interests of a substantial holder, as detailed in their recent notice. The notice outlines the voting power and relevant interests of various entities, including State Street Global Advisors and other financial institutions, in JB Hi-Fi’s securities. This change in substantial holding could impact the company’s shareholder dynamics and influence its governance and decision-making processes.

JB Hi-Fi Announces Cessation of Securities
Apr 3, 2025

JB Hi-Fi Limited has announced the cessation of several securities, with a total of 7,497 options expiring on various dates in early 2025. This move may impact the company’s capital structure and could have implications for investors and stakeholders, reflecting a strategic decision in managing its financial operations.

JB Hi-Fi Limited Issues Unquoted Equity Securities
Apr 1, 2025

JB Hi-Fi Limited has announced the issuance and conversion of several unquoted equity securities, with a total of 5,102 ordinary fully paid shares being issued across various dates in February and March 2025. This move reflects the company’s ongoing financial activities and could potentially impact its market positioning by enhancing its equity base, which may have implications for its stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.