BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - NYSE:BBY - US0865161014 - Common Stock
76.86 USD
+0.24 (+0.31%)
76.86 USD
0 (0%)
Overall BBY gets a fundamental rating of 5 out of 10. We evaluated BBY against 122 industry peers in the Specialty Retail industry. BBY has only an average score on both its financial health and profitability. BBY is cheap, but on the other hand it scores bad on growth. Finally BBY also has an excellent dividend rating. This makes BBY very considerable 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.
Each year in the past 5 years BBY has been profitable.
In the past 5 years BBY always reported a positive cash flow from operatings.
1.2 Ratios
BBY has a better Return On Assets (5.10%) than 71.31% of its industry peers.
The Return On Equity of BBY (28.65%) is better than 86.07% of its industry peers.
BBY has a better Return On Invested Capital (19.01%) than 88.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BBY is significantly above the industry average of 11.64%.
| 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
BBY has a Profit Margin (1.87%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BBY has declined.
BBY's Operating Margin of 4.14% is fine compared to the rest of the industry. BBY outperforms 62.30% of its industry peers.
BBY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 22.54%, BBY is doing worse than 77.05% of the companies in the same industry.
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.
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
The Debt to FCF ratio of BBY is 0.87, which is an excellent value as it means it would take BBY, only 0.87 years of fcf income to pay off all of its debts.
BBY has a better Debt to FCF ratio (0.87) than 81.97% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that BBY is not too dependend on debt financing.
BBY has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | N/A |
ROIC/WACC2
WACC9.5%
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 72.13% of its industry peers.
BBY has a Quick Ratio of 1.04. This is a bad value and indicates that BBY is not financially healthy enough and could expect problems in meeting its short term obligations.
BBY has a worse Quick ratio (0.36) than 64.75% 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%.
The Earnings Per Share has been growing slightly by 0.80% on average over the past years.
The Revenue has decreased by -2.21% in the past year.
BBY shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.99% yearly.
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
The Earnings Per Share is expected to grow by 9.82% 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 2.16% on average per year.
EPS Next Y-1.19%
EPS Next 2Y2.77%
EPS Next 3Y5.17%
EPS Next 5Y9.82%
Revenue Next Year1.22%
Revenue Next 2Y1.3%
Revenue Next 3Y1.7%
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.
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
A Price/Earnings ratio of 12.26 indicates a correct valuation of BBY.
BBY's Price/Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 81.15% of the companies in the same industry.
BBY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 11.41, the valuation of BBY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 81.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, BBY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
BBY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBY is cheaper than 80.33% 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 83.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)15.27
EPS Next 2Y2.77%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
BBY has a Yearly Dividend Yield of 4.96%, which is a nice return.
BBY's Dividend Yield is rather good when compared to the industry average which is at 5.68. BBY pays more dividend than 90.98% of the companies in the same industry.
BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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 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 103.47% 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.
DP103.47%
EPS Next 2Y2.77%
EPS Next 3Y5.17%
76.86
+0.24 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.62%
Inst Owner Change0%
Ins Owners0.32%
Ins Owner Change1.15%
Market Cap16.15B
Analysts68.13
Price Target80.09 (4.2%)
Short Float %8.3%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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)-0.3%
PT rev (3m)0.53%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)1.18%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.39 | ||
| P/FCF | 11.94 | ||
| P/OCF | 7.82 | ||
| P/B | 5.95 | ||
| P/tB | 8.93 | ||
| EV/EBITDA | 6.16 |
EPS(TTM)6.27
EY8.16%
EPS(NY)6.74
Fwd EY8.77%
FCF(TTM)6.44
FCFY8.37%
OCF(TTM)9.82
OCFY12.78%
SpS197.99
BVpS12.93
TBVpS8.61
PEG (NY)N/A
PEG (5Y)15.27
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%
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 Turnover2.73
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
WACC9.5%
ROIC/WACC2
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-1.19%
EPS Next 2Y2.77%
EPS Next 3Y5.17%
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 Year1.22%
Revenue Next 2Y1.3%
Revenue Next 3Y1.7%
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%