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.
FLT shares
Founded in Sydney in 1982, Flight Centre is a global travel agency with operations across more than 80 countries, operating under various brand names.
The company serves both the retail and corporate sectors, offering a range of services including tour operations, travel experiences, and hotel management.
Flight Centre differentiates itself by providing a personal touch that many online travel agencies can’t match. Their consultants manage all aspects of travel planning and are often able to secure exclusive deals for customers, fostering loyalty and repeat business.
JBH & FLT 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%.
Over the last 3 years, FLT has increased revenue at a rate of 89.8% per year to hit $2,708m in FY24. Meanwhile, net profit has fallen from $433m to $140m. FLT’s last reported ROE was 11.9%.
Please keep in mind that context is important. These metrics give us some indication of company performance, but it’s just the start of valuing JBH or FLT shares. To learn more about valuation, check out one of our free online investing courses.
