The JB Hi-Fi Ltd (ASX: JBH) share price hit a 52-week high of $37.67 per share during yesterday’s trade.
The Aussie electronics company’s shares are up more than 72% so far this year – but is there still time to buy?
Why the JB Hi-Fi share price is surging higher
JB Hi-Fi shares have been consistently climbing higher throughout 2019.
The latest surge comes as JB Hi-Fi updated its Q1 2020 and FY20 sales guidance figures on Thursday.
JB Hi-Fi Australia reported Q1 2020 total sales growth of 4.7% and comparable sales growth of 3.7%.
JB Hi-Fi New Zealand’s figures were also strong, with total sales and comparable sales both up 3.8%.
One drag on the update was The Good Guys segment with total sales growth of -0.5% and comparable sales growth down 1.8%.
Investors were bullish on the company’s reaffirmed FY20 guidance at $7.25 billion in sales.
JB Hi-Fi’s breakdown estimates $4.84 billion of sales in Australia, $0.24 billion in New Zealand and $2.18 billion from The Good Guys.
What about JB Hi-Fi’s full-year result?
JB Hi-Fi was a surprise performer in the latest August reporting season.
The Aussie retailer reported net profit up 7.1% on the prior corresponding period (pcp) to $249.8 million.
DVD and CD sales continue to fall but the result was strong given the gloomy outlook for Aussie retail.
JB Hi-Fi’s games, smart home devices and fitness equipment sales climbed 4.1% to $4.73 billion during the year.
The company’s reaffirmed $7.25 billion sales figure would represent 2.2% sales growth for the year.
Is the JB Hi-Fi share price good value?
I’m always wary of purchasing shares at 52-week highs, despite potential momentum factors.
JB Hi-Fi has defied expectations for the Aussie retail sector and the JB Hi-Fi share price could climb higher.
JB Hi-Fi shares are trading at 17.3x earnings with a market cap of $4.3 billion and a dividend yield of 3.8% per annum.
This compares favourably to fellow ASX electronics retailer Kogan.com Ltd (ASX: KGN).
The Kogan share price also just hit a 52-week high but trade at 38.7x earnings with a 2.05% dividend yield.
For pure electronics and white goods exposure, I think JB Hi-Fi shares could be better value at the moment.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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