BEST BUY CO INC (BBY) Stock Fundamental Analysis
NYSE:BBY - US0865161014 - Common Stock
73.652 USD
-1.74 (-2.31%)
We assign a fundamental rating of 6 out of 10 to BBY. BBY was compared to 123 industry peers in the Specialty Retail industry. Both the profitability and the financial health of BBY get a neutral evaluation. Nothing too spectacular is happening here. BBY has a bad growth rate and is valued cheaply. Finally BBY also has an excellent dividend rating. With these ratings, BBY could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
BBY had positive earnings in the past year.
BBY had a positive operating cash flow in the past year.
BBY had positive earnings in each of the past 5 years.
In the past 5 years BBY always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.25%, BBY is doing good in the industry, outperforming 76.42% of the companies in the same industry.
BBY has a better Return On Equity (31.96%) than 86.99% of its industry peers.
BBY has a better Return On Invested Capital (19.09%) than 87.80% of its industry peers.
BBY had an Average Return On Invested Capital over the past 3 years of 19.35%. This is significantly above the industry average of 11.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.25% | ||
| ROE | 31.96% | ||
| ROIC | 19.09% |
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
BBY's Profit Margin of 2.13% is fine compared to the rest of the industry. BBY outperforms 60.16% of its industry peers.
BBY's Profit Margin has declined in the last couple of years.
BBY has a better Operating Margin (4.19%) than 61.79% of its industry peers.
In the last couple of years the Operating Margin of BBY has declined.
With a Gross Margin value of 22.61%, BBY is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
BBY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.19% | ||
| PM (TTM) | 2.13% | ||
| GM | 22.61% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBY is creating value.
Compared to 1 year ago, BBY has less shares outstanding
BBY has less shares outstanding than it did 5 years ago.
BBY has a worse debt/assets ratio than last year.
2.2 Solvency
BBY has an Altman-Z score of 4.44. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
BBY has a better Altman-Z score (4.44) than 85.37% of its industry peers.
BBY has a debt to FCF ratio of 0.93. This is a very positive value and a sign of high solvency as it would only need 0.93 years to pay back of all of its debts.
The Debt to FCF ratio of BBY (0.93) is better than 81.30% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that BBY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, BBY is in line with its industry, outperforming 55.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 4.44 |
ROIC/WACC2.06
WACC9.28%
2.3 Liquidity
BBY has a Current Ratio of 1.02. This is a normal value and indicates that BBY is financially healthy and should not expect problems in meeting its short term obligations.
BBY has a Current ratio of 1.02. This is in the lower half of the industry: BBY underperforms 72.36% of its industry peers.
A Quick Ratio of 0.32 indicates that BBY may have some problems paying its short term obligations.
The Quick ratio of BBY (0.32) is worse than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
BBY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.56%.
The Earnings Per Share has been growing slightly by 0.80% on average over the past years.
The Revenue has decreased by -3.23% in the past year.
The Revenue has been decreasing by -0.99% on average over the past years.
EPS 1Y (TTM)-1.56%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%-0.9%
3.2 Future
The Earnings Per Share is expected to grow by 13.16% on average over the next years. This is quite good.
Based on estimates for the next years, BBY will show a small growth in Revenue. The Revenue will grow by 1.58% on average per year.
EPS Next Y-2.34%
EPS Next 2Y2.63%
EPS Next 3Y5.11%
EPS Next 5Y13.16%
Revenue Next Year0.29%
Revenue Next 2Y0.9%
Revenue Next 3Y1.4%
Revenue Next 5Y1.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.64, which indicates a very decent valuation of BBY.
Based on the Price/Earnings ratio, BBY is valued cheaply inside the industry as 82.11% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (27.24), we can say BBY is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.96, the valuation of BBY can be described as very reasonable.
81.30% of the companies in the same industry are more expensive than BBY, based on the Price/Forward Earnings ratio.
BBY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
BBY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBY is cheaper than 80.49% of the companies in the same industry.
BBY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBY is cheaper than 82.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.39 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)14.5
EPS Next 2Y2.63%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
BBY has a Yearly Dividend Yield of 5.25%, which is a nice return.
Compared to an average industry Dividend Yield of 5.69, BBY pays a better dividend. On top of this BBY pays more dividend than 91.06% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
5.2 History
On average, the dividend of BBY grows each year by 13.37%, which is quite nice.
BBY has paid a dividend for at least 10 years, which is a reliable track record.
BBY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.37%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
BBY pays out 91.39% of its income as dividend. This is not a sustainable payout ratio.
BBY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP91.39%
EPS Next 2Y2.63%
EPS Next 3Y5.11%
NYSE:BBY (8/25/2025, 10:50:03 AM)
73.652
-1.74 (-2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.2%
Inst Owner Change-0.43%
Ins Owners0.32%
Ins Owner Change3.39%
Market Cap15.57B
Analysts68.13
Price Target79.31 (7.68%)
Short Float %7.82%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
Yearly Dividend3.78
Dividend Growth(5Y)13.37%
DP91.39%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.43%
Min EPS beat(2)4.41%
Max EPS beat(2)6.45%
EPS beat(4)3
Avg EPS beat(4)5.47%
Min EPS beat(4)-3.62%
Max EPS beat(4)14.65%
EPS beat(8)7
Avg EPS beat(8)7.57%
EPS beat(12)11
Avg EPS beat(12)11.53%
EPS beat(16)13
Avg EPS beat(16)12.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)0.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)0.79%
Revenue beat(8)1
Avg Revenue beat(8)-1.18%
Revenue beat(12)2
Avg Revenue beat(12)-0.86%
Revenue beat(16)5
Avg Revenue beat(16)-0.47%
PT rev (1m)0%
PT rev (3m)-10.65%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-8.66%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.38 | ||
| P/FCF | 12.39 | ||
| P/OCF | 7.88 | ||
| P/B | 5.63 | ||
| P/tB | 8.88 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)6.33
EY8.59%
EPS(NY)6.72
Fwd EY9.12%
FCF(TTM)5.94
FCFY8.07%
OCF(TTM)9.35
OCFY12.69%
SpS196.11
BVpS13.07
TBVpS8.29
PEG (NY)N/A
PEG (5Y)14.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.25% | ||
| ROE | 31.96% | ||
| ROCE | 25.83% | ||
| ROIC | 19.09% | ||
| ROICexc | 23.02% | ||
| ROICexgc | 28.12% | ||
| OM | 4.19% | ||
| PM (TTM) | 2.13% | ||
| GM | 22.61% | ||
| FCFM | 3.03% |
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%
ROICexcg growth 3Y-32.43%
ROICexcg 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 Turnover2.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 0.93 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 83.92% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.21% | ||
| Profit Quality | 142.24% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 4.44 |
F-Score7
WACC9.28%
ROIC/WACC2.06
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)-1.56%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.17%
EPS Next Y-2.34%
EPS Next 2Y2.63%
EPS Next 3Y5.11%
EPS Next 5Y13.16%
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%-0.9%
Revenue Next Year0.29%
Revenue Next 2Y0.9%
Revenue Next 3Y1.4%
Revenue Next 5Y1.58%
EBIT growth 1Y-0.97%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year51.54%
EBIT Next 3Y18.05%
EBIT Next 5Y12.42%
FCF growth 1Y-35.85%
FCF growth 3Y-17.9%
FCF growth 5Y-5.24%
OCF growth 1Y-31.32%
OCF growth 3Y-13.59%
OCF growth 5Y-3.94%