JB Hi-Fi Limited (JBH.AX) stock analysis

In our weekly check, JB Hi-Fi Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 4.

About JB Hi-Fi Limited

JB Hi-Fi Limited is a Consumer Cyclical company (Specialty Retail) based in Australia, listed on ASX as JBH.AX.

What our checks show for JBH.AX

Red flags

• The net margin is only 4.4%: little room if costs rise.
• The dividend takes 132% of profit: little cushion if profit falls.
• The stock has fallen as much as 66% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.8 years.

Warning signs

• The net margin fell by 1.5 points over 5 years, to 4.4%: the company keeps less of each sale as profit.
• Analysts expect only about 3.1% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.1 points from today's 4.4%.
• Revenue grew only 4.7% a year over the last 3 years.
• Earnings per share fell 2.3% a year over the last 3 years.
• Net profit fell 2.3% a year over the last 3 years.

Strengths

• Net debt is only 0.5x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 14 times over.
• Operating cash flow is 1.43x net profit: the profit arrives as real cash.
• Return on capital (ROCE) is 31.5%: the business earns well on the money put into it.
• Pay in shares is only 0% of free cash flow.

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ETSY · CHWY · GLBE · AVOL.SW · ZAL.DE · MUSA

Questions

What grade does JB Hi-Fi Limited (JBH.AX) have?

In our weekly check, JB Hi-Fi Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of JBH.AX stock?

This week's biggest flags for JB Hi-Fi Limited: Thin margins, Dividend stretched, Deep past fall. In total 10 of 25 checks show a warning or a red flag.

What does JB Hi-Fi Limited do?

JB Hi-Fi Limited is a Consumer Cyclical company (Specialty Retail) based in Australia, listed on ASX as JBH.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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