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.
ALL shares
Aristocrat Leisure is an Australian gambling machine operator headquartered in Sydney. It was founded by Len Ainsworth in 1953.
Today, Aristocrat is the largest gambling machine manufacturer in Australia and one of the largest manufacturers of slot machines in the world. However, the business has diversified over the years and now also makes online mobile games. This segment has grown steadily to now make up nearly half of the company’s revenue.
The gaming machines Aristocrat make can be sold outright to a venue or gaming operator. Alternatively, a machine can be installed with a proportion of the revenue generated being paid on a recurring basis back to Aristocrat.
JBH & ALL 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. As for ROE, JBH last reported a ROE of 29.5%.
Over the last 3 years, ALL has increased revenue at a rate of 11.7% per year to hit $6,604m in FY24. Meanwhile, net profit has increased from $820m to $1,303m. As for ROE, ALL’s last reported figure was 20.0%.
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 ALL shares. To learn more about valuation, check out one of our free online investing courses.
