BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - NYSE:BBY - US0865161014 - Common Stock
84 USD
+0.14 (+0.17%)
84 USD
0 (0%)
Taking everything into account, BBY scores 5 out of 10 in our fundamental rating. BBY was compared to 121 industry peers in the Specialty Retail industry. BBY has an average financial health and profitability rating. BBY is valued correctly, but it does not seem to be growing. BBY also has an excellent dividend rating. This makes BBY very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
BBY had positive earnings in the past year.
In the past year BBY had a positive cash flow from operations.
In the past 5 years BBY has always been profitable.
In the past 5 years BBY always reported a positive cash flow from operatings.
1.2 Ratios
BBY's Return On Assets of 5.10% is fine compared to the rest of the industry. BBY outperforms 69.42% of its industry peers.
BBY has a better Return On Equity (28.65%) than 85.12% of its industry peers.
BBY has a better Return On Invested Capital (19.01%) than 87.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 28.65% | ||
| ROIC | 19.01% |
ROA(3y)7.85%
ROA(5y)9.4%
ROE(3y)41.48%
ROE(5y)48.98%
ROIC(3y)19.35%
ROIC(5y)22.54%
1.3 Margins
Looking at the Profit Margin, with a value of 1.87%, BBY is in line with its industry, outperforming 57.85% of the companies in the same industry.
BBY's Profit Margin has declined in the last couple of years.
BBY's Operating Margin of 4.14% is fine compared to the rest of the industry. BBY outperforms 60.33% of its industry peers.
BBY's Operating Margin has declined in the last couple of years.
BBY has a Gross Margin of 22.54%. This is in the lower half of the industry: BBY underperforms 76.86% of its industry peers.
BBY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.14% | ||
| PM (TTM) | 1.87% | ||
| GM | 22.54% |
OM growth 3Y-10.46%
OM growth 5Y-2.33%
PM growth 3Y-22.2%
PM growth 5Y-8.77%
GM growth 3Y0.15%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
BBY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
BBY has less shares outstanding than it did 1 year ago.
BBY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BBY has a worse debt to assets ratio.
2.2 Solvency
BBY has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
BBY has a Debt to FCF ratio of 0.87. This is amongst the best in the industry. BBY outperforms 82.64% of its industry peers.
BBY has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.43, BBY perfoms like the industry average, outperforming 57.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | N/A |
ROIC/WACC2.08
WACC9.14%
2.3 Liquidity
A Current Ratio of 1.04 indicates that BBY should not have too much problems paying its short term obligations.
BBY has a worse Current ratio (1.04) than 72.73% of its industry peers.
A Quick Ratio of 0.36 indicates that BBY may have some problems paying its short term obligations.
BBY has a Quick ratio of 0.36. This is in the lower half of the industry: BBY underperforms 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
BBY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.27%.
BBY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.80% yearly.
The Revenue has decreased by -2.21% in the past year.
The Revenue has been decreasing by -0.99% on average over the past years.
EPS 1Y (TTM)-4.27%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.48%
Revenue 1Y (TTM)-2.21%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%1.61%
3.2 Future
Based on estimates for the next years, BBY will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.82% on average per year.
The Revenue is expected to grow by 2.16% on average over the next years.
EPS Next Y-1.17%
EPS Next 2Y2.85%
EPS Next 3Y5.27%
EPS Next 5Y9.82%
Revenue Next Year1.21%
Revenue Next 2Y1.27%
Revenue Next 3Y1.61%
Revenue Next 5Y2.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.40 indicates a correct valuation of BBY.
Based on the Price/Earnings ratio, BBY is valued a bit cheaper than the industry average as 79.34% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (27.00), we can say BBY is valued rather cheaply.
A Price/Forward Earnings ratio of 12.45 indicates a correct valuation of BBY.
76.86% of the companies in the same industry are more expensive than BBY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BBY to the average of the S&P500 Index (22.87), we can say BBY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBY indicates a somewhat cheap valuation: BBY is cheaper than 73.55% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BBY is valued cheaply inside the industry as 80.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
BBY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)16.69
EPS Next 2Y2.85%
EPS Next 3Y5.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.61%, BBY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.22, BBY pays a better dividend. On top of this BBY pays more dividend than 92.56% of the companies listed in the same industry.
BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
5.2 History
The dividend of BBY is nicely growing with an annual growth rate of 13.38%!
BBY has been paying a dividend for at least 10 years, so it has a reliable track record.
BBY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.38%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
103.47% of the earnings are spent on dividend by BBY. This is not a sustainable payout ratio.
The dividend of BBY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP103.47%
EPS Next 2Y2.85%
EPS Next 3Y5.27%
84
+0.14 (+0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.62%
Inst Owner Change0.84%
Ins Owners0.32%
Ins Owner Change1.15%
Market Cap17.65B
Revenue(TTM)41.60B
Net Income(TTM)778.00M
Analysts68.13
Price Target80.09 (-4.65%)
Short Float %8.71%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP103.47%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)4.41%
Max EPS beat(2)4.59%
EPS beat(4)3
Avg EPS beat(4)2.96%
Min EPS beat(4)-3.62%
Max EPS beat(4)6.45%
EPS beat(8)7
Avg EPS beat(8)6.44%
EPS beat(12)11
Avg EPS beat(12)10.23%
EPS beat(16)13
Avg EPS beat(16)9.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)3
Avg Revenue beat(12)-0.75%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)-0.43%
PT rev (3m)0.98%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)1.09%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 12.45 | ||
| P/S | 0.42 | ||
| P/FCF | 13.05 | ||
| P/OCF | 8.55 | ||
| P/B | 6.5 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)6.27
EY7.46%
EPS(NY)6.75
Fwd EY8.04%
FCF(TTM)6.44
FCFY7.66%
OCF(TTM)9.82
OCFY11.7%
SpS197.99
BVpS12.93
TBVpS8.61
PEG (NY)N/A
PEG (5Y)16.69
Graham Number42.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 28.65% | ||
| ROCE | 25.73% | ||
| ROIC | 19.01% | ||
| ROICexc | 24.29% | ||
| ROICexgc | 29.38% | ||
| OM | 4.14% | ||
| PM (TTM) | 1.87% | ||
| GM | 22.54% | ||
| FCFM | 3.25% |
ROA(3y)7.85%
ROA(5y)9.4%
ROE(3y)41.48%
ROE(5y)48.98%
ROIC(3y)19.35%
ROIC(5y)22.54%
ROICexc(3y)25.47%
ROICexc(5y)38.8%
ROICexgc(3y)34.77%
ROICexgc(5y)61.16%
ROCE(3y)26.19%
ROCE(5y)30.58%
ROICexgc growth 3Y-32.43%
ROICexgc growth 5Y-4.41%
ROICexc growth 3Y-24.39%
ROICexc growth 5Y-2.87%
OM growth 3Y-10.46%
OM growth 5Y-2.33%
PM growth 3Y-22.2%
PM growth 5Y-8.77%
GM growth 3Y0.15%
GM growth 5Y-0.37%
F-Score7
Asset Turnover2.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 83.67% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.16% | ||
| Profit Quality | 173.78% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | N/A |
F-Score7
WACC9.14%
ROIC/WACC2.08
Cap/Depr(3y)89.65%
Cap/Depr(5y)87.75%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.69%
Profit Quality(3y)89.19%
Profit Quality(5y)120.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.27%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.48%
EPS Next Y-1.17%
EPS Next 2Y2.85%
EPS Next 3Y5.27%
EPS Next 5Y9.82%
Revenue 1Y (TTM)-2.21%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%1.61%
Revenue Next Year1.21%
Revenue Next 2Y1.27%
Revenue Next 3Y1.61%
Revenue Next 5Y2.16%
EBIT growth 1Y-3.53%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year52.35%
EBIT Next 3Y18.09%
EBIT Next 5Y11.74%
FCF growth 1Y-26.12%
FCF growth 3Y-17.9%
FCF growth 5Y-5.24%
OCF growth 1Y-23.95%
OCF growth 3Y-13.59%
OCF growth 5Y-3.94%
BEST BUY CO INC / BBY FAQ
What is the ChartMill fundamental rating of BEST BUY CO INC (BBY) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BBY.
Can you provide the valuation status for BEST BUY CO INC?
ChartMill assigns a valuation rating of 6 / 10 to BEST BUY CO INC (BBY). This can be considered as Fairly Valued.
How profitable is BEST BUY CO INC (BBY) stock?
BEST BUY CO INC (BBY) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for BBY stock?
The Price/Earnings (PE) ratio for BEST BUY CO INC (BBY) is 13.4 and the Price/Book (PB) ratio is 6.5.
How sustainable is the dividend of BEST BUY CO INC (BBY) stock?
The dividend rating of BEST BUY CO INC (BBY) is 7 / 10 and the dividend payout ratio is 103.47%.