JBH share price in focus
Founded in 1974, JB Hi-Fi is among Australia’s leading retailers of electronics and home entertainment products.
The company operates across three main segments: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys, the latter acquired in 2016 and offering a similar product range.
JB Hi-Fi follows a cost-leadership strategy, focusing on competitive pricing to stand out against its rivals. Frequent discounts on its products enhance their perceived value, providing customers with attractive deals.
AMC shares
Amcor designs and manufactures a wide variety of packaging solutions, including flexible packaging, rigid containers, specialty cartons, and closures.
With origins dating back to the 1860s, Amcor has grown into a global leader, operating across more than 200 sites in 40 countries.
The company prioritizes innovation in packaging to address evolving consumer preferences and regulatory requirements for sustainable solutions.
JBH share price valuation
As a growth company, some of the trends we might investigate from JBH include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, JBH has grown revenue at a rate of 2.5% per year to reach $9,592m in FY24. Over the same stretch of time, net profit has fallen from $506m to $439m. JBH last reported a ROE of 29.5%.
Since AMC is more of a ‘mature’ or ‘blue-chip’ business, some of the metrics that could be considered important include the debt/equity ratio, average yield, and return on equity, or ROE. These are useful as they give us an idea of debt levels and the company’s ability to generate a return on assets and pay out profits (which is what we want from a blue chip). In FY24, Amcor CDI reported a debt/equity ratio of 187.0%, meaning the company is leveraged (it has more debt than equity). Higher debt levels comes with increased risk so it’s important that a leveraged company has stable returns and the capacity to pay interest on its debts.
As for dividends, since 2019 AMC has achieved an average dividend yield of 4.4% per year.
Finally, in FY24, AMC reported an ROE of 18.4%. For a mature business you’re generally looking for an ROE of more than 10%, so AMC clears this hurdle.
Keep in mind that these are only a small selection of metrics. We don’t have enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
