JD Sports Share Price (JD.)

Summary:

I have some concerns before investing this time where I had none in the past. So have decided to delay until the trading update is released approx somewhere about the 11th to 17th of January 2020, just a few weeks away - and before the full results are published in April, as I want to hear more on that net profit.

The utterly humongous Net Debt ( an historic first for JD ) is now on the books in this current trading year, but not any (or little) of F/Line's sales and profit (as far as I can see) to counter balance it.

So need more clarification on that matter straight from the horses mouth in January, before a final decision.

I've been looking casually at reinvesting in JD as it served me well back in the day. Not up to date with all previous RNS releases etc., but I instantly lit up when the Finish Line acquisition was mentioned below, as recall idly reading about that in passing. It could be that instead of a first by JD in net profit being down on last year - as it's a pure fact for H1 - that sales and profit from Finish Line might show up some contribution in H2. (I'm hoping that's all it is).

And that's it - I'm done posting :)
Have a merry Christmas and a happy new year, one and all.

- And I didn't even mentioned the 'B' word :)

And to round off, I did say I'd highlight what I was seeing as positive balance sheet metrics in JD.

First thing is, despite the v recent retrace in the SP due to the Pentland share disposal, the PE ratio never lost its premium rating that the market awards JD.
It has steadfastly remained well above the industry median which for specialist retail is quite low these days - at a forward P/E 11.9 thus showing confidence in JD the company, by the wider market.

As said, the Industry median is a lowly fwd P/E11.9 but as of tonight the P/E ratio for JD. stands at a fwd P/E of 20.2 That's approaching near double the value by comparison to the median in JD's industry!

A premium rating; the market's seal of approval!

Revenue continues as it has done for years to increases y-o-y at an astonishing rate (see previous posts below).
As has the Net Profit, but I have an issue for this year's alone (which I'll expand on in the summary).

The forward EPS growth (Earnings Per Share) stands at a fwd 12.1% which once again beats the industry median that stands at a lesser 4.03% growth.

ROE (Return On Capital) is an excellent 12.1% compared to the Industry median of only 6.36%

ROE (Return On Equity) -"- ditto, but even more so, at a magnificent 26.9% return whilst the Industry median can only muster 5.51%

Operating Margin you might think unimpressive at 7.03% but once again it leaves all in its industry in its wake who can only produce a median of 2.11%

There are several other metrics for measuring JD. but unfortunately they're not JD's strong suit, so not part of this post (Price To Book Value and Price to tangibles & more such as FCFlow etc., etc.,)

JD is 15%+ above its 200dayMA SP (moving average) and its 1 year relative strength is also excellent - so the SP has and still is, considered to be: 'motoring' despite recent zig-zagging.

Now on to a v short summary to finish off.

"Lots of rambling stats here!"

- Yes LOL! And hopefully an end to those - when I do a final post on the positive metrics within JD. and a closing summary. Then I'll be done :)

Lots of rambling stats here! FootAsylum was a £90m purchase. The debt is from the purchase of Finish Line in US, a huge acquisition.

PS.

Meant to add - All reports in the media refer to pre-tax profit being up on last year. The actual truth is NET PROFIT was DOWN on the corresponding period the previous year. Here's the figures:

6 months ending 4/8/18: .... 6 months 3/8/19

Revenue = £1845m ............ £2721m UP!

Gross Profit = £889.9m ...... £1275m UP!

Pre-tax profit = £121.9m ... £129.9m UP!
(This is all the media analysts are fond of reporting - the pre-tax profit as in, "Profit' is up"! But PI's should be more interested in the Net profit, so finally just look at this the bottom line for 1/2yr 2019 >

NET PROFIT = £97.8m ....... £94.1m X DOWN

And that's where the TTM method of calculation shows an unsatisfactory start to this current year, for the first time, Net Profit achieved is down on the corresponding 6 months compared to last year.

(And now I really am off for a cuppa to watch a little of the election results).