The JBH numbers were, as usual, excellent.
JBH’s aren’t overloaded with unmoveable inventory, as are many other retailers. Their cashflows in the 2H were negative, but not abnormally so given the first half.
Margins were solid.
You could say that top line growth of 3.5% is sub inflation, in which case how did they keep margins intact. That’s impressive.
For us, it’s the margin. We think they are over-earning, and as the cycle turns that attractive 10-12x forward PE can just as easily become 20x.
But, no denying it, JB are brilliant at what they do.
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