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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