Fact based stock research
JB Hi-Fi (ASX:JBH)
AU000000JBH7
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
JB Hi-Fi stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), JB Hi-Fi (Electronics Retail, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of JB Hi-Fi are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives). But they show above-average growth (Growth Rank of 83) and are safely financed (Safety Rank of 54, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on JB Hi-Fi's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company JB Hi-Fi exhibits low value (Obermatt Value Rank of 41), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 83). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 54) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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3-Oct-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: JB Hi-Fi
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 76 |
|
57 |
|
51 |
|
41 |
|
GROWTH | ||||||||
GROWTH | 20 |
|
47 |
|
43 |
|
83 |
|
SAFETY | ||||||||
SAFETY | 62 |
|
44 |
|
55 |
|
54 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
52 |
|
39 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
53 |
|
34 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), JB Hi-Fi (Electronics Retail, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of JB Hi-Fi are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives). But they show above-average growth (Growth Rank of 83) and are safely financed (Safety Rank of 54, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on JB Hi-Fi's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company JB Hi-Fi exhibits low value (Obermatt Value Rank of 41), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 83). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 54) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 76 |
|
57 |
|
51 |
|
41 |
|
GROWTH | ||||||||
GROWTH | 20 |
|
47 |
|
43 |
|
83 |
|
SAFETY | ||||||||
SAFETY | 62 |
|
44 |
|
55 |
|
54 |
|
COMBINED | ||||||||
COMBINED | 89 |
|
48 |
|
51 |
|
69 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), JB Hi-Fi shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for JB Hi-Fi. Price-to-Sales (P/S) is 53, which means that the stock price compared with what market professionals expect for future sales is lower than for 53% of comparable companies, indicating a good value concerning JB Hi-Fi's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 82, which means that dividends are expected to be higher than for 82% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 86% of alternatives (only 14% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 64% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on JB Hi-Fi's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 66 |
|
67 |
|
60 |
|
53 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 71 |
|
65 |
|
50 |
|
36 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 20 |
|
29 |
|
22 |
|
14 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 92 |
|
88 |
|
79 |
|
82 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 76 |
|
57 |
|
51 |
|
41 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 83 (better than 83% compared with alternatives) for 2024, JB Hi-Fi shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for JB Hi-Fi. Profit Growth has a rank of 51 which means that currently professionals expect the company to grow its profits more than 51% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 57, and Stock Returns has a rank of 93 which means that the stock returns have recently been above 93% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 46 (54% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 83, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 8 |
|
6 |
|
20 |
|
46 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 52 |
|
25 |
|
8 |
|
51 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
89 |
|
72 |
|
57 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 36 |
|
53 |
|
79 |
|
93 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 20 |
|
47 |
|
43 |
|
83 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company JB Hi-Fi has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of JB Hi-Fi is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for JB Hi-Fi. Leverage is at a rank of 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors. Liquidity is also good at a rank of 61, meaning the company generates more profit to service its debt than 61% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 42, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 58% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), JB Hi-Fi has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for JB Hi-Fi. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with JB Hi-Fi and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 61 |
|
50 |
|
55 |
|
56 |
|
REFINANCING | ||||||||
REFINANCING | 35 |
|
26 |
|
38 |
|
42 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 95 |
|
63 |
|
61 |
|
61 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 62 |
|
44 |
|
55 |
|
54 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
31 |
|
9 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
40 |
|
52 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
85 |
|
67 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
52 |
|
39 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for JB Hi-Fi from October 3, 2024.
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