JB Hi-Fi Limited (JBH) AI Stock Analysis

• Market Cap: AU$11.87B
• Dividend Yield: 3.13%
• Average Volume (3M): 259.02K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.04
• Revenue Growth: 6.21%
• EPS Growth: 0.20%
• Country: AU
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Specialty Retail
• EPS (TTM): 2.60
• Shares Outstanding: 109,333,984
• 10 Day Avg. Volume: 237,358
• 30 Day Avg. Volume: 259,025
• PEG Ratio: 1.71
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$93.39
• Price Target Upside: -14.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: AU$126.00 ▲(16.02%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 Business Overview & Revenue Model

Company Description

JB 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 Money

JB 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

JB Hi-Fi has demonstrated consistent revenue growth with strong gross profit margins, although net profit margins have slightly declined, indicating some pressure on profitability. The balance sheet shows moderate leverage with a stable debt-to-equity ratio and strong return on equity. Cash flow performance is robust, supporting financial stability despite a slight dip in free cash flow.

Income Statement

JB Hi-Fi has demonstrated consistent revenue growth over the years, with a slight dip in the most recent period. The gross profit margin remains strong at 22.31% for the latest year, although the net profit margin has decreased to 4.57% from 5.45% the previous year, indicating some pressure on profitability. Both EBIT and EBITDA margins have also seen a decline, suggesting increased operational costs.

Balance Sheet

The company's balance sheet shows a relatively stable debt-to-equity ratio of 0.42, which indicates moderate leverage. Return on equity is solid at 28.15%, though slightly down from 36.95% the previous year, indicating a strong but slightly declining capability to generate profits from shareholders' equity. The equity ratio stands at 44.72%, showing a balanced capital structure with a healthy portion of assets financed by equity.

Cash Flow

JB Hi-Fi's cash flow performance is robust, with a strong free cash flow to net income ratio of 1.55, reflecting efficient cash generation relative to net income. The operating cash flow to net income ratio is at 1.71, showing strong operational cash generation capability. Free cash flow has also shown healthy growth, although it dipped slightly in the latest year compared to the previous.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.10B	9.59B	9.63B	9.23B	8.92B	7.92B
Gross Profit	2.25B	2.14B	2.18B	2.08B	1.98B	1.69B
EBITDA	741.80M	893.60M	995.70M	1.01B	955.60M	696.80M
Net Income	459.90M	438.80M	524.60M	544.90M	506.10M	302.30M
Balance Sheet
Total Assets	4.17B	3.49B	3.49B	3.16B	3.15B	3.15B
Cash, Cash Equivalents and Short-Term Investments	556.40M	317.70M	177.30M	125.60M	263.20M	251.50M
Total Debt	692.00M	657.40M	655.10M	604.40M	631.30M	741.60M
Total Liabilities	2.55B	1.93B	2.08B	1.88B	1.84B	2.05B
Stockholders Equity	1.62B	1.56B	1.42B	1.28B	1.31B	1.11B
Cash Flow
Free Cash Flow	699.90M	678.10M	644.40M	569.80M	501.00M	938.20M
Operating Cash Flow	776.40M	752.60M	716.40M	627.40M	558.70M	981.30M
Investing Cash Flow	-117.50M	-74.40M	-71.70M	-57.40M	-57.70M	-43.00M
Financing Cash Flow	-590.40M	-537.90M	-593.10M	-707.20M	-489.30M	-805.80M

JB Hi-Fi Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 108.6 is below the 20-day moving average (MA) of 109.52, above the 50-day MA of 105.97, and above the 200-day MA of 93.19, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 37.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBH	75 Outperform	AU$11.87B	25.81	29.07%	3.13%	6.21%	0.20%
Sector *	66 Neutral	€9.18B	14.50	5.85%	3.08%	3.86%	-31.71%
DPZUF		$1.21B	122.16	2.09%	4.93%	―	―
HNORF		$4.25B	14.69	9.58%	4.58%	―	―
WFAFF		$62.36B	36.40	30.35%	2.18%	―	―
30M		€591.33M	18.82	8.55%	16.53%	―	―
KMD		AU$177.92M	―	-7.70%	―	―	―

JB Hi-Fi Limited Corporate Events

JB Hi-Fi’s The Good Guys Resolves ACCC Proceedings with $13.5 Million Penalty

JB Hi-Fi Limited’s subsidiary, The Good Guys, has reached an agreement with the Australian Competition and Consumer Commission (ACCC) to resolve legal proceedings concerning advertising and fulfilment practices related to store credit promotions. The resolution includes a $13.5 million penalty and a remediation program for affected customers, reflecting The Good Guys’ commitment to compliance and maintaining consumer trust.

The most recent analyst rating on (AU:JBH) stock is a Hold with a A$70.00 price target. To see the full list of analyst forecasts on JB Hi-Fi Limited stock, see the AU:JBH Stock Forecast page.

JB Hi-Fi Limited Reports Strong Q3 FY25 Sales Growth

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

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

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

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.