JB HI-FI is the cornerstone of electronic retail
JB HI-FI is the cornerstone of electronic retail The margin of safety for JB lies in its position in the market, currently, it stands as the major player in retail electronics. Though notable competitors include the likes of Harvey Norman and Kogan. They don’t directly hold the same territory. As Harvey Norman operates in the electronic retail space as well as interior renovation i.e. mattresses, etc. They can be seen as JB’s strongest competitor. On the other hand, Kogan demonstrates the “grey area” of retail, as what I conceive as shady tactics to increase revenue for the firm. As they grey import products they expose themselves as opposed to the manufacturer to any issues with the product. JB demonstrates a strong earnings record over the past ten years with positive EBITDA growth seen over that period. There is no doubt its ability to maintain its earning power in the long-term future (5 years plus) is unquestionable. However, clear headwinds lie in the earnings power for the...