JBH

JB Hi-FiASX:JBH Stock Report

Market Cap

AU$5.2b

7D

1.6%

1Y

-3.0%

Updated

18 Sep, 2021

Data

Company Financials +
JBH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

JBH Overview

JB Hi-Fi Limited, together with its subsidiaries, retails home consumer products.

JB Hi-Fi Competitors

Price History & Performance

Summary of all time highs, changes and price drops for JB Hi-Fi
Historical stock prices
Current Share PriceAU$45.64
52 Week HighAU$42.30
52 Week LowAU$55.25
Beta0.72
1 Month Change-8.08%
3 Month Change-6.23%
1 Year Change-3.00%
3 Year Change82.41%
5 Year Change55.72%
Change since IPO1,928.44%

Recent News & Updates

Shareholder Returns

JBHAU Specialty RetailAU Market
7D1.6%2.3%-0.02%
1Y-3.0%37.9%27.0%

Return vs Industry: JBH underperformed the Australian Specialty Retail industry which returned 37.9% over the past year.

Return vs Market: JBH underperformed the Australian Market which returned 27% over the past year.

Price Volatility

Is JBH's price volatile compared to industry and market?
JBH volatility
JBH Beta0.72
Industry Beta1.21
Market Beta1

Stable Share Price: JBH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: JBH's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197413,200Terry Smarthttps://www.jbhifi.com.au

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 offers consumer electronics products and services, including televisions, audio equipment, computers, and cameras; telecommunications products and services; software products, such as music, movies, TV shows, and games; musical instruments; and home appliances comprising washers and dryers, fridges and freezers, vacuuming and cleaning, microwaves and dishwashers, coffee machines, small kitchen appliances, and heating and cooling products.

Valuation

Is JB Hi-Fi undervalued compared to its fair value and its price relative to the market?

10.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JBH (A$45.64) is trading above our estimate of fair value (A$44.25)

Significantly Below Fair Value: JBH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JBH is good value based on its PE Ratio (10.4x) compared to the Australian Specialty Retail industry average (11.4x).

PE vs Market: JBH is good value based on its PE Ratio (10.4x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: JBH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: JBH's PB Ratio (4x) is in line with the AU Specialty Retail industry average.


Future Growth

How is JB Hi-Fi forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBH's earnings are forecast to decline over the next 3 years (-7.4% per year).

Earnings vs Market: JBH's earnings are forecast to decline over the next 3 years (-7.4% per year).

High Growth Earnings: JBH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: JBH's revenue (0.7% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: JBH's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBH's Return on Equity is forecast to be high in 3 years time (23.5%)


Past Performance

How has JB Hi-Fi performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBH has high quality earnings.

Growing Profit Margin: JBH's current net profit margins (5.7%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: JBH's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: JBH's earnings growth over the past year (67.4%) exceeds its 5-year average (22.8% per year).

Earnings vs Industry: JBH earnings growth over the past year (67.4%) underperformed the Specialty Retail industry 90.7%.


Return on Equity

High ROE: JBH's Return on Equity (38.7%) is considered high.


Financial Health

How is JB Hi-Fi's financial position?


Financial Position Analysis

Short Term Liabilities: JBH's short term assets (A$1.4B) exceed its short term liabilities (A$1.4B).

Long Term Liabilities: JBH's short term assets (A$1.4B) exceed its long term liabilities (A$591.6M).


Debt to Equity History and Analysis

Debt Level: JBH is debt free.

Reducing Debt: JBH has no debt compared to 5 years ago when its debt to equity ratio was 27.6%.

Debt Coverage: JBH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: JBH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is JB Hi-Fi current dividend yield, its reliability and sustainability?

6.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JBH's dividend (6.29%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: JBH's dividend (6.29%) is in the top 25% of dividend payers in the Australian market (5.41%)


Stability and Growth of Payments

Stable Dividend: JBH's dividend payments have been volatile in the past 10 years.

Growing Dividend: JBH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.1%), JBH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JBH's dividends in 3 years are forecast to be covered by earnings (65.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Terry Smart (56 yo)

0.083

Tenure

AU$2,275,709

Compensation

Mr. Terry David Smart serves as Chief Executive Officer and Executive Director at JB Hi-Fi Limited since August 27, 2021. He had been Managing Director of The Good Guys at JB Hi-Fi Limited since April 18,...


CEO Compensation Analysis

Compensation vs Market: Terry's total compensation ($USD1.66M) is about average for companies of similar size in the Australian market ($USD1.73M).

Compensation vs Earnings: Terry's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: JBH's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: JBH's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: JBH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

JB Hi-Fi Limited's employee growth, exchange listings and data sources


Key Information

  • Name: JB Hi-Fi Limited
  • Ticker: JBH
  • Exchange: ASX
  • Founded: 1974
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: AU$5.249b
  • Shares outstanding: 115.00m
  • Website: https://www.jbhifi.com.au

Number of Employees


Location

  • JB Hi-Fi Limited
  • Podium Level
  • 60 City Road
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.