JB HI-FI Limited is a music and electronic goods retailer in Australia.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 Mo) | Market Value | Dividend Yield | Float % | Target Price | Consensus Rating (5 strong buy – 1 strong sell) |
Next Earnings Announcement |
| 20.43 – 52.99 | 738,839 | 5,764.80 | – | 99.0% | 47.38 | 2.79 | 10/02/2021 |
The company operates stores at sites across Australia with products focusing on consumer electronics, sound systems, music and DVDs. The group also includes The Good Guys brand, having been acquired by JBH in 2016, with the Good Guys product offering focusing on home appliances and electronics. Both brands focus on providing best brands at low prices coupled with exception customer service and highly trained, knowledgeable staff. JBH offers a diversified sales channel and mix of locations including high streets, shopping centers, online and commercial.
The groups model focusing on five competitive advantages. Firstly, scale as the largest electronic goods retailer in Australia with further opportunities to consolidate and invest to drive cost efficiencies. Secondly a low-cost operating model driven by productive floor space with high sales per meter and focus on improving productivity enabling low prices. Quality store location, aimed at high foot traffic and convenient areas such as major shopping centers, CBD locations and homemaker centers while The Good Guys brand focuses on easily accessible destinations in homemaker centers and standalone stores. Strong supplier partnerships locally and globally with store and online placement providing high visibility of supplier products. Multichannel sales, combining in-store, online and phone offering to customers as well as commercial business supporting corporates, government and education.
Sales have benefited from the studying and work-from home tailwinds coupled with reallocated consumer spending away from pubs/restaurants/travel resulting from the COVID-19 pandemic. However, the company also faces challenges including competition from other online competitors including Amazon and Kogan.com as well as potential supply side challenges in response to factory closures resulting from COVID-19.
Australian sales from the JB HI-FI brand totaled 67% in 2020 with The Good Guys brand accounting for 30% while sales in New Zealand accounted for just 3%. Revenue is forecast to rise 6.5% in 2021 to $8,432.23m before edging slightly lower to $8,123m in 2022. Earnings per share is predicted to rise 15.8% for 2021 to $3.062 before declining -14.7% to $2.612 in 2022. That would see the stock trade on forward P/E multiples of 16.4 and 19.2 respectively.
The average target price of analysts covering the stock is $47.38 with 14% of analysts rating the stock as a buy, compared to 25% as a sell and 57% as a hold.
