ASX:JBH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has JB Hi-Fi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JBH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: JBH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

JBH

2.6%

AU Specialty Retail

2.4%

AU Market


1 Year Return

22.1%

JBH

16.9%

AU Specialty Retail

-0.6%

AU Market

Return vs Industry: JBH exceeded the Australian Specialty Retail industry which returned 16.9% over the past year.

Return vs Market: JBH exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

JBHIndustryMarket
7 Day0.5%2.6%2.4%
30 Day-7.3%0.6%8.0%
90 Day-10.5%6.2%8.8%
1 Year27.3%22.1%20.9%16.9%2.7%-0.6%
3 Year124.4%93.9%77.1%55.4%24.3%9.0%
5 Year230.5%157.2%83.3%45.9%56.9%25.7%

Long-Term Price Volatility Vs. Market

How volatile is JB Hi-Fi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

17.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JBH (A$45.78) is trading above our estimate of fair value (A$40.32)

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 (17.4x) compared to the AU Specialty Retail industry average (17.8x).

PE vs Market: JBH is good value based on its PE Ratio (17.4x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: JBH is poor value based on its PEG Ratio (22.4x)


Price to Book Ratio

PB vs Industry: JBH is overvalued based on its PB Ratio (4.8x) compared to the AU Specialty Retail industry average (2.7x).


Next Steps

Future Growth

How is JB Hi-Fi forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBH's forecast earnings growth (0.8% per year) is below the savings rate (2.3%).

Earnings vs Market: JBH's earnings (0.8% per year) are forecast to grow slower than the Australian market (17.8% per year).

High Growth Earnings: JBH's earnings are forecast to grow, but not significantly.

Revenue vs Market: JBH's revenue (2.1% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: JBH's revenue (2.1% 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 (22.7%)


Next Steps

Past Performance

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

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBH has high quality earnings.

Growing Profit Margin: JBH's current net profit margins (3.8%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: JBH's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: JBH's earnings growth over the past year (21%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: JBH earnings growth over the past year (21%) exceeded the Specialty Retail industry -0.04%.


Return on Equity

High ROE: JBH's Return on Equity (27.3%) is considered high.


Next Steps

Financial Health

How is JB Hi-Fi's financial position?


Financial Position Analysis

Short Term Liabilities: JBH's short term assets (A$1.2B) do not cover its short term liabilities (A$1.3B).

Long Term Liabilities: JBH's short term assets (A$1.2B) exceed its long term liabilities (A$700.7M).


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 39.6%.

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


Next Steps

Dividend

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

4.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JBH's dividend (4.13%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: JBH's dividend (4.13%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


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 (71.8%), 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 (67.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Retail industry.

Management

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

6.3yrs

Average management tenure


CEO

Richard Murray

6.33yrs

Tenure

AU$3,895,586

Compensation

Mr. Richard Murray, B.Comm, Grad.Dip. Applied Finance & Investment, C.A., ASIA, F.C.A., has been the Group Chief Executive Officer of JB Hi-Fi Limited ("Company") since July 1, 2014 and served as its Inter...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD2.87M) is above average for companies of similar size in the Australian market ($USD1.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Murray
Group CEO & Executive Director6.33yrsAU$3.90m0.12%
A$ 6.3m
Nick Wells
Group Chief Financial Officer6.33yrsAU$2.15m0.042%
A$ 2.2m
Terry Smart
Managing Director of The Good Guysno dataAU$2.53m0.0082%
A$ 427.1k
Cameron Trainor
Managing Director of the JB Hi-Fi Business2.25yrsAU$2.49m0.027%
A$ 1.4m
Doug Smith
Company Secretary8.42yrsno datano data

6.3yrs

Average Tenure

Experienced Management: JBH's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Murray
Group CEO & Executive Director6.33yrsAU$3.90m0.12%
A$ 6.3m
Richard Uechtritz
Independent Non-Executive Director9.58yrsAU$134.00k0.0042%
A$ 218.5k
Stephen Goddard
Independent Non-Executive Chairman0.33yrAU$156.25k0.0039%
A$ 204.4k
Mark Powell
Independent Non-Executive Director3.67yrsAU$151.07k0.0035%
A$ 181.5k
Beth Laughton
Independent Non-Executive Director9.5yrsAU$180.00k0.0050%
A$ 263.3k
Melanie Wilson
Independent Non-Executive Director0.42yrAU$11.37k0.0013%
A$ 68.3k

6.0yrs

Average Tenure

Experienced Board: JBH's board of directors are considered experienced (6 years average tenure).


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 company bio, 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$5.215b
  • Shares outstanding: 114.88m
  • Website: https://www.jbhifi.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JBHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2003
JB3DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2003
JBHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2003

Biography

JB Hi-Fi Limited, together with its subsidiaries, retails home consumer products. It operates through three segments: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys. The company offers consume...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:00
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.