BEST BUY CO INC (BBY) Fundamental Analysis & Valuation

NYSE:BBY • US0865161014

Current stock price

62.385 USD
-0.83 (-1.31%)
Last:

This BBY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. BBY Profitability Analysis

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.
BBY Yearly Net Income VS EBIT VS OCF VS FCFBBY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B

1.2 Ratios

  • BBY's Return On Assets of 7.29% is amongst the best of the industry. BBY outperforms 80.49% of its industry peers.
  • BBY's Return On Equity of 36.07% is amongst the best of the industry. BBY outperforms 88.62% of its industry peers.
  • The Return On Invested Capital of BBY (18.65%) is better than 87.80% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 13.16%.
  • The last Return On Invested Capital (18.65%) for BBY is above the 3 year average (18.44%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.29%
ROE 36.07%
ROIC 18.65%
ROA(3y)7.28%
ROA(5y)8.97%
ROE(3y)36.58%
ROE(5y)48.35%
ROIC(3y)18.44%
ROIC(5y)21.75%
BBY Yearly ROA, ROE, ROICBBY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60 80

1.3 Margins

  • With a decent Profit Margin value of 2.56%, BBY is doing good in the industry, outperforming 64.23% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BBY has declined.
  • BBY's Operating Margin of 4.25% is fine compared to the rest of the industry. BBY outperforms 65.04% of its industry peers.
  • In the last couple of years the Operating Margin of BBY has declined.
  • BBY's Gross Margin of 22.48% is on the low side compared to the rest of the industry. BBY is outperformed by 75.61% of its industry peers.
  • BBY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.25%
PM (TTM) 2.56%
GM 22.48%
OM growth 3Y0.02%
OM growth 5Y-5.17%
PM growth 3Y-5.77%
PM growth 5Y-7.59%
GM growth 3Y1.64%
GM growth 5Y0.06%
BBY Yearly Profit, Operating, Gross MarginsBBY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10 15 20

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5

2. BBY Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBY is creating value.
  • BBY has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for BBY has been reduced compared to 5 years ago.
  • BBY has a worse debt/assets ratio than last year.
BBY Yearly Shares OutstandingBBY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
BBY Yearly Total Debt VS Total AssetsBBY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B

2.2 Solvency

  • The Debt to FCF ratio of BBY is 0.93, which is an excellent value as it means it would take BBY, only 0.93 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.93, BBY belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
  • A Debt/Equity ratio of 0.39 indicates that BBY is not too dependend on debt financing.
  • BBY has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: BBY outperforms 56.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.93
Altman-Z N/A
ROIC/WACC2.18
WACC8.54%
BBY Yearly LT Debt VS Equity VS FCFBBY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 1.11 indicates that BBY should not have too much problems paying its short term obligations.
  • BBY's Current ratio of 1.11 is on the low side compared to the rest of the industry. BBY is outperformed by 65.04% of its industry peers.
  • A Quick Ratio of 0.43 indicates that BBY may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.43, BBY perfoms like the industry average, outperforming 40.65% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.43
BBY Yearly Current Assets VS Current LiabilitesBBY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. BBY Growth Analysis

3.1 Past

  • BBY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.94%.
  • Measured over the past years, BBY shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.05% on average per year.
  • Looking at the last year, BBY shows a small growth in Revenue. The Revenue has grown by 0.39% in the last year.
  • Measured over the past years, BBY shows a decrease in Revenue. The Revenue has been decreasing by -2.48% on average per year.
EPS 1Y (TTM)0.94%
EPS 3Y-3.2%
EPS 5Y-4.05%
EPS Q2Q%1.16%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y-3.43%
Revenue growth 5Y-2.48%
Sales Q2Q%-0.96%

3.2 Future

  • BBY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.97% yearly.
  • Based on estimates for the next years, BBY will show a small growth in Revenue. The Revenue will grow by 1.98% on average per year.
EPS Next Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
EPS Next 5Y10.97%
Revenue Next Year0%
Revenue Next 2Y0.69%
Revenue Next 3Y1.05%
Revenue Next 5Y1.98%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
BBY Yearly Revenue VS EstimatesBBY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B 50B
BBY Yearly EPS VS EstimatesBBY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8 10

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7

4. BBY Valuation Analysis

4.1 Price/Earnings Ratio

  • BBY is valuated reasonably with a Price/Earnings ratio of 9.69.
  • Based on the Price/Earnings ratio, BBY is valued cheaper than 86.18% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. BBY is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of BBY.
  • Based on the Price/Forward Earnings ratio, BBY is valued cheaper than 86.18% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.51. BBY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.69
Fwd PE 9.27
BBY Price Earnings VS Forward Price EarningsBBY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, BBY is valued cheaply inside the industry as 86.99% of the companies are valued more expensively.
  • 80.49% of the companies in the same industry are more expensive than BBY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.39
EV/EBITDA 4.87
BBY Per share dataBBY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BBY does not grow enough to justify the current Price/Earnings ratio.
  • BBY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)N/A
EPS Next 2Y6.26%
EPS Next 3Y11.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. BBY Dividend Analysis

5.1 Amount

  • BBY has a Yearly Dividend Yield of 5.98%, which is a nice return.
  • BBY's Dividend Yield is rather good when compared to the industry average which is at 2.79. BBY pays more dividend than 91.06% of the companies in the same industry.
  • BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 5.98%

5.2 History

  • On average, the dividend of BBY grows each year by 11.46%, which is quite nice.
  • BBY has paid a dividend for at least 10 years, which is a reliable track record.
  • BBY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.46%
Div Incr Years14
Div Non Decr Years14
BBY Yearly Dividends per shareBBY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • BBY pays out 74.93% 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.
DP74.93%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
BBY Yearly Income VS Free CF VS DividendBBY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
BBY Dividend Payout.BBY Dividend Payout, showing the Payout Ratio.BBY Dividend Payout.PayoutRetained Earnings

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BBY Fundamentals: All Metrics, Ratios and Statistics

BEST BUY CO INC

NYSE:BBY (3/27/2026, 11:16:08 AM)

62.385

-0.83 (-1.31%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-27
Inst Owners99.32%
Inst Owner Change11.64%
Ins Owners0.33%
Ins Owner Change0.4%
Market Cap13.07B
Revenue(TTM)41.69B
Net Income(TTM)1.07B
Analysts67.74
Price Target80.97 (29.79%)
Short Float %12.56%
Short Ratio4.85
Dividend
Industry RankSector Rank
Dividend Yield 5.98%
Yearly Dividend3.81
Dividend Growth(5Y)11.46%
DP74.93%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-24
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.39%
Min EPS beat(2)4.81%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.94%
Min EPS beat(4)4.41%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)5.96%
EPS beat(12)11
Avg EPS beat(12)6.54%
EPS beat(16)14
Avg EPS beat(16)9.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-0.14%
Revenue beat(4)1
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.85%
Revenue beat(12)2
Avg Revenue beat(12)-0.95%
Revenue beat(16)4
Avg Revenue beat(16)-0.59%
PT rev (1m)-2.46%
PT rev (3m)-5.42%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.45%
Valuation
Industry RankSector Rank
PE 9.69
Fwd PE 9.27
P/S 0.31
P/FCF 10.39
P/OCF 6.66
P/B 4.41
P/tB 6.01
EV/EBITDA 4.87
EPS(TTM)6.44
EY10.32%
EPS(NY)6.73
Fwd EY10.79%
FCF(TTM)6
FCFY9.62%
OCF(TTM)9.36
OCFY15.01%
SpS198.96
BVpS14.15
TBVpS10.38
PEG (NY)2.15
PEG (5Y)N/A
Graham Number45.27
Profitability
Industry RankSector Rank
ROA 7.29%
ROE 36.07%
ROCE 25.33%
ROIC 18.65%
ROICexc 24.83%
ROICexgc 29.22%
OM 4.25%
PM (TTM) 2.56%
GM 22.48%
FCFM 3.02%
ROA(3y)7.28%
ROA(5y)8.97%
ROE(3y)36.58%
ROE(5y)48.35%
ROIC(3y)18.44%
ROIC(5y)21.75%
ROICexc(3y)23.94%
ROICexc(5y)31.53%
ROICexgc(3y)30.16%
ROICexgc(5y)46.4%
ROCE(3y)25.04%
ROCE(5y)29.53%
ROICexgc growth 3Y-11.97%
ROICexgc growth 5Y-22.25%
ROICexc growth 3Y-5.3%
ROICexc growth 5Y-16.45%
OM growth 3Y0.02%
OM growth 5Y-5.17%
PM growth 3Y-5.77%
PM growth 5Y-7.59%
GM growth 3Y1.64%
GM growth 5Y0.06%
F-Score7
Asset Turnover2.84
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.93
Debt/EBITDA 0.45
Cap/Depr 84.72%
Cap/Sales 1.69%
Interest Coverage 250
Cash Conversion 75.4%
Profit Quality 117.68%
Current Ratio 1.11
Quick Ratio 0.43
Altman-Z N/A
F-Score7
WACC8.54%
ROIC/WACC2.18
Cap/Depr(3y)84.12%
Cap/Depr(5y)87.7%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.73%
Profit Quality(3y)107.41%
Profit Quality(5y)97.54%
High Growth Momentum
Growth
EPS 1Y (TTM)0.94%
EPS 3Y-3.2%
EPS 5Y-4.05%
EPS Q2Q%1.16%
EPS Next Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
EPS Next 5Y10.97%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y-3.43%
Revenue growth 5Y-2.48%
Sales Q2Q%-0.96%
Revenue Next Year0%
Revenue Next 2Y0.69%
Revenue Next 3Y1.05%
Revenue Next 5Y1.98%
EBIT growth 1Y2.13%
EBIT growth 3Y-3.41%
EBIT growth 5Y-7.52%
EBIT Next Year51.61%
EBIT Next 3Y20.35%
EBIT Next 5Y13.23%
FCF growth 1Y-9.63%
FCF growth 3Y12.06%
FCF growth 5Y-21.48%
OCF growth 1Y-6.48%
OCF growth 3Y2.46%
OCF growth 5Y-16.82%

BEST BUY CO INC / BBY Fundamental Analysis FAQ

What is the ChartMill fundamental rating of BEST BUY CO INC (BBY) stock?

ChartMill assigns a fundamental rating of 6 / 10 to BBY.


What is the valuation status of BEST BUY CO INC (BBY) stock?

ChartMill assigns a valuation rating of 7 / 10 to BEST BUY CO INC (BBY). This can be considered as Undervalued.


How profitable is BEST BUY CO INC (BBY) stock?

BEST BUY CO INC (BBY) has a profitability rating of 7 / 10.


What is the expected EPS growth for BEST BUY CO INC (BBY) stock?

The Earnings per Share (EPS) of BEST BUY CO INC (BBY) is expected to grow by 4.5% in the next year.


How sustainable is the dividend of BEST BUY CO INC (BBY) stock?

The dividend rating of BEST BUY CO INC (BBY) is 8 / 10 and the dividend payout ratio is 74.93%.