JB Hi-Fi Limited (JBH) AI Stock Analysis

• Market Cap: AU$8.87B
• Dividend Yield: 2.54%
• Average Volume (3M): 246.75K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.00
• Revenue Growth: 10.03%
• EPS Growth: 5.38%
• Country: AU
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.74
• Shares Outstanding: 109,333,984
• 10 Day Avg. Volume: 259,666
• 30 Day Avg. Volume: 246,745
• PEG Ratio: 4.75
• Price to Book (P/B): 7.46
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 19.17
• 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$102.90
• Price Target Upside: 26.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: AU$84.00 ▲(3.51% Upside)

The overall stock score of 58 reflects a mixed outlook for JB Hi-Fi Limited. The company's solid financial performance is overshadowed by bearish technical indicators, suggesting potential short-term challenges. While the valuation is moderate, the lack of earnings call insights and corporate events leaves the stock's future direction uncertain. Investors should monitor operational efficiency improvements and market conditions closely.

Positive Factors

Diversified Retail Business Model

JB Hi‑Fi’s multi‑channel model (JB Hi‑Fi, The Good Guys, services and B2B) creates structural revenue diversification. Scale across store network, online and commercial sales supports supplier access, promotional leverage and steadier volumes over multiple quarters.

Consistent Revenue Growth and Stable Gross Margin

Sustained top‑line growth with a stable ~22% gross margin indicates durable demand and sourcing/pricing discipline. Over a 2–6 month horizon this supports predictable cash generation and capacity to fund operations, inventories and targeted investments without eroding core margin structure.

Manageable Leverage and Financial Flexibility

A lower debt‑to‑equity ratio and healthy equity base provide capacity to fund store investment, omnichannel initiatives and working capital needs. This balance sheet strength reduces refinancing risk and preserves strategic optionality across medium-term retail cycles.

Negative Factors

Declining Net Profit and Operating Margins

Erosion in net profit and operating margins suggests rising operating costs or intensifying price competition. Persisting margin pressure would reduce retained earnings and limit the company’s ability to reinvest profitably, requiring structural efficiency gains to restore historical returns.

Weakening Free Cash Flow Growth

A 10.1% decline in free cash flow growth, despite a solid FCF/net income ratio, signals deteriorating cash conversion trends. Continued weakening constrains capital expenditure, dividends and resilience to demand shocks, potentially forcing greater reliance on external funding for expansion.

Falling Return on Equity

A declining ROE points to lower capital efficiency and weaker returns on shareholder funds. If persistent, this suggests incremental investments are delivering diminishing returns, pressuring shareholder value and requiring strategic reallocation or margin recovery to improve long‑term profitability.

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 generates revenue primarily through the sale of consumer electronics, appliances, and related accessories. The company operates on a high-volume, low-margin retail model, which allows it to attract price-sensitive customers while maintaining profitability through scale. Key revenue streams include in-store sales, online sales through its e-commerce platform, and the sale of extended warranties and insurance products. Additionally, JB Hi-Fi benefits from strategic partnerships with leading brands in the electronics sector, which help enhance its product offerings and promotions. Seasonal sales events, such as Black Friday and Christmas, also contribute significantly to revenue spikes throughout the year.

JB Hi-Fi Limited Financial Statement Overview

Summary

JB Hi-Fi Limited shows a solid financial performance with consistent revenue growth and stable margins. The balance sheet reflects a manageable debt level and a strong asset base. However, declining net profit margins and free cash flow growth highlight areas for improvement. The company should focus on enhancing operational efficiency and cash flow management to sustain its financial health.

Income Statement

JB Hi-Fi Limited has demonstrated consistent revenue growth, with a 4.5% increase in the latest year. The gross profit margin remains stable at around 22%, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.38%, reflecting increased operational costs or competitive pressures. The EBIT and EBITDA margins have also seen a decline, suggesting potential challenges in maintaining operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved slightly to 0.44, indicating a stable leverage position. The equity ratio is healthy, reflecting a strong asset base relative to liabilities. However, the return on equity has decreased over the years, suggesting a need for more effective utilization of shareholder funds to generate profits.

Cash Flow

Operating cash flow remains strong, but there is a notable decline in free cash flow growth, down by 10.1%. The free cash flow to net income ratio is robust at 0.88, indicating good cash generation relative to profits. However, the decline in free cash flow growth could signal potential liquidity challenges if not addressed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.55B	10.55B	9.59B	9.63B	9.23B	8.92B
Gross Profit	2.36B	2.36B	2.14B	2.18B	2.08B	1.98B
EBITDA	957.60M	925.90M	864.40M	973.80M	991.50M	934.30M
Net Income	462.40M	462.40M	438.80M	524.60M	544.90M	506.10M
Balance Sheet
Total Assets	3.88B	3.88B	3.49B	3.49B	3.16B	3.15B
Cash, Cash Equivalents and Short-Term Investments	284.10M	284.10M	317.70M	177.30M	125.60M	263.20M
Total Debt	714.40M	714.40M	657.40M	655.10M	604.40M	631.30M
Total Liabilities	2.26B	2.26B	1.93B	2.08B	1.88B	1.84B
Stockholders Equity	1.62B	1.62B	1.56B	1.42B	1.28B	1.31B
Cash Flow
Free Cash Flow	629.30M	629.30M	678.10M	644.40M	569.80M	501.00M
Operating Cash Flow	711.60M	711.60M	752.60M	716.40M	627.40M	558.70M
Investing Cash Flow	-122.90M	-122.90M	-74.40M	-71.70M	-57.40M	-57.70M
Financing Cash Flow	-622.40M	-622.40M	-537.90M	-593.10M	-707.20M	-489.30M

JB Hi-Fi Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:JBH, the sentiment is Negative. The current price of 81.15 is below the 20-day moving average (MA) of 89.24, below the 50-day MA of 92.84, and below the 200-day MA of 104.94, indicating a bearish trend. The MACD of -3.33 indicates Positive momentum. The RSI at 23.17 is Positive, neither overbought nor oversold. The STOCH value of 10.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
SUL	71 Outperform	AU$3.32B	14.97	16.46%	7.20%	4.83%	-7.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JBH	58 Neutral	AU$8.87B	19.18	29.12%	2.54%	10.03%	5.38%
ADH	58 Neutral	AU$310.34M	11.98	11.70%	5.85%	3.99%	-18.35%
BLX	55 Neutral	AU$573.36M	19.36	16.86%	2.86%	1.89%	-3.30%
TPW	54 Neutral	AU$1.45B	126.58	8.81%	―	20.66%	543.24%
KGN	47 Neutral	$359.13M	-9.21	-40.52%	4.00%	6.24%	-23341.18%

JB Hi-Fi Limited Corporate Events

JB Hi-Fi Issues Small Parcel of Shares on Conversion of Unquoted Equity

JB Hi-Fi Limited has notified the market of the issue of a small number of ordinary fully paid shares resulting from the exercise or conversion of previously unquoted equity securities. The new JBH shares, issued on various dates in November 2025, reflect routine equity administration rather than a major capital-raising, signalling ongoing operation of employee or incentive schemes without materially altering the company’s capital structure or ownership dynamics.

The most recent analyst rating on (AU:JBH) stock is a Buy with a A$120.00 price target. To see the full list of analyst forecasts on JB Hi-Fi Limited stock, see the AU:JBH Stock Forecast page.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in JB Hi-Fi

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in JB Hi-Fi Limited as of December 10, 2025. This change in shareholding, involving transactions by entities controlled by First Sentier Group Limited and Morgan Stanley, may impact JB Hi-Fi’s market dynamics and stakeholder interests, reflecting shifts in investment strategies.

The most recent analyst rating on (AU:JBH) stock is a Hold with a A$101.00 price target. To see the full list of analyst forecasts on JB Hi-Fi Limited stock, see the AU:JBH Stock Forecast page.

First Sentier Investors Ceases to be a Substantial Holder in JB Hi-Fi

JB Hi-Fi Limited has announced that First Sentier Investors and its related entities have ceased to be substantial holders of the company’s voting securities as of December 8, 2025. This change in substantial holding may impact JB Hi-Fi’s shareholder composition and could influence future corporate governance or strategic decisions.

The most recent analyst rating on (AU:JBH) stock is a Hold with a A$101.00 price target. To see the full list of analyst forecasts on JB Hi-Fi Limited stock, see the AU:JBH Stock Forecast page.