BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBY - US0865161014 - Common Stock
74.06 USD
-0.32 (-0.43%)
74.09 USD
+0.03 (+0.04%)
Taking everything into account, BBY scores 5 out of 10 in our fundamental rating. BBY was compared to 122 industry peers in the Specialty Retail industry. BBY has only an average score on both its financial health and profitability. BBY has a bad growth rate and is valued cheaply. Finally BBY also has an excellent dividend rating. These ratings would make BBY suitable 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.
BBY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.84%, BBY is doing good in the industry, outperforming 64.75% of the companies in the same industry.
BBY has a better Return On Equity (24.31%) than 84.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.29%, BBY belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
BBY had an Average Return On Invested Capital over the past 3 years of 19.35%. This is significantly above the industry average of 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 24.31% | ||
| ROIC | 19.29% |
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 has a Profit Margin (1.54%) which is comparable to the rest of the industry.
BBY's Profit Margin has declined in the last couple of years.
BBY's Operating Margin of 4.16% is fine compared to the rest of the industry. BBY outperforms 60.66% of its industry peers.
In the last couple of years the Operating Margin of BBY has declined.
BBY has a worse Gross Margin (22.50%) than 77.05% of its industry peers.
BBY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.16% | ||
| PM (TTM) | 1.54% | ||
| GM | 22.5% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
The Debt to FCF ratio of BBY (0.77) is better than 82.79% of its industry peers.
BBY has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, BBY perfoms like the industry average, outperforming 55.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.11
WACC9.15%
2.3 Liquidity
BBY has a Current Ratio of 1.05. 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 worse Current ratio (1.05) than 70.49% of its industry peers.
A Quick Ratio of 0.26 indicates that BBY may have some problems paying its short term obligations.
The Quick ratio of BBY (0.26) is worse than 83.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
BBY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.69%.
BBY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.80% yearly.
BBY shows a decrease in Revenue. In the last year, the revenue decreased by -0.95%.
Measured over the past years, BBY shows a decrease in Revenue. The Revenue has been decreasing by -0.99% on average per year.
EPS 1Y (TTM)-1.69%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%11.11%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%2.4%
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 9.76% on average per year.
Based on estimates for the next years, BBY will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-0.1%
EPS Next 2Y3.25%
EPS Next 3Y5.28%
EPS Next 5Y9.76%
Revenue Next Year1.35%
Revenue Next 2Y1.33%
Revenue Next 3Y1.55%
Revenue Next 5Y2.13%
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
Based on the Price/Earnings ratio of 11.55, the valuation of BBY can be described as reasonable.
Based on the Price/Earnings ratio, BBY is valued cheaper than 81.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (26.41), we can say BBY is valued rather cheaply.
A Price/Forward Earnings ratio of 10.89 indicates a reasonable valuation of BBY.
BBY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 80.33% of the companies in the same industry.
BBY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
BBY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BBY is cheaper than 77.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 87.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 6.14 |
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)14.39
EPS Next 2Y3.25%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
BBY has a Yearly Dividend Yield of 5.07%, which is a nice return.
BBY's Dividend Yield is rather good when compared to the industry average which is at 5.65. BBY pays more dividend than 93.44% of the companies in the same industry.
BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
5.2 History
On average, the dividend of BBY grows each year by 13.38%, which is quite nice.
BBY has been paying a dividend for at least 10 years, so it has 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)13.38%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
BBY pays out 124.34% of its income as dividend. 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.
DP124.34%
EPS Next 2Y3.25%
EPS Next 3Y5.28%
74.06
-0.32 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.62%
Inst Owner Change-2.24%
Ins Owners0.32%
Ins Owner Change1.15%
Market Cap15.56B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target83.32 (12.5%)
Short Float %6.47%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP124.34%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.27%
Min EPS beat(2)4.59%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)5.35%
Min EPS beat(4)4.41%
Max EPS beat(4)6.45%
EPS beat(8)7
Avg EPS beat(8)6.21%
EPS beat(12)11
Avg EPS beat(12)8.03%
EPS beat(16)13
Avg EPS beat(16)9.05%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.72%
Revenue beat(12)2
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)4.03%
PT rev (3m)5.05%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.89 | ||
| P/S | 0.37 | ||
| P/FCF | 10.28 | ||
| P/OCF | 7.01 | ||
| P/B | 5.87 | ||
| P/tB | 8.35 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)6.41
EY8.66%
EPS(NY)6.8
Fwd EY9.18%
FCF(TTM)7.21
FCFY9.73%
OCF(TTM)10.57
OCFY14.27%
SpS199.07
BVpS12.63
TBVpS8.87
PEG (NY)N/A
PEG (5Y)14.39
Graham Number42.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 24.31% | ||
| ROCE | 26.11% | ||
| ROIC | 19.29% | ||
| ROICexc | 22.38% | ||
| ROICexgc | 25.95% | ||
| OM | 4.16% | ||
| PM (TTM) | 1.54% | ||
| GM | 22.5% | ||
| FCFM | 3.62% |
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 Turnover2.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 83.77% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.89% | ||
| Profit Quality | 234.73% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | N/A |
F-Score7
WACC9.15%
ROIC/WACC2.11
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)-1.69%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%11.11%
EPS Next Y-0.1%
EPS Next 2Y3.25%
EPS Next 3Y5.28%
EPS Next 5Y9.76%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%2.4%
Revenue Next Year1.35%
Revenue Next 2Y1.33%
Revenue Next 3Y1.55%
Revenue Next 5Y2.13%
EBIT growth 1Y-2.08%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year52.35%
EBIT Next 3Y18.45%
EBIT Next 5Y12.62%
FCF growth 1Y10.03%
FCF growth 3Y-17.9%
FCF growth 5Y-5.24%
OCF growth 1Y-0.05%
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 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 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 11.55 and the Price/Book (PB) ratio is 5.87.
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 124.34%.