As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of JB Hi-Fi Limited (ASX:JBH), it is a financially-robust , dividend-paying company with an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on JB Hi-Fi here.
Excellent balance sheet with proven track record and pays a dividend
JBH delivered a satisfying double-digit returns of 24% in the most recent year. Unsurprisingly, JBH surpassed the Specialty Retail industry return of 13%, which gives us more confidence of the company's capacity to drive earnings going forward. JBH's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that JBH has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. JBH seems to have put its debt to good use, generating operating cash levels of 0.69x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
JBH is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For JB Hi-Fi, I've compiled three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for JBH’s future growth? Take a look at our free research report of analyst consensus for JBH’s outlook.
- Valuation: What is JBH worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JBH is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JBH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.