BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BBY • US0865161014
65.1 USD
-0.05 (-0.08%)
At close: Jan 30, 2026
65.04 USD
-0.06 (-0.09%)
After Hours: 1/30/2026, 8:04:00 PM
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. 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.
- In the past 5 years BBY has always been profitable.
- Each year in the past 5 years BBY had a positive operating cash flow.
1.2 Ratios
- BBY has a Return On Assets of 3.84%. This is in the better half of the industry: BBY outperforms 63.11% of its industry peers.
- BBY has a better Return On Equity (24.31%) than 82.79% of its industry peers.
- BBY has a Return On Invested Capital of 19.29%. This is amongst the best in the industry. BBY outperforms 87.70% 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 12.24%.
| 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
- Looking at the Profit Margin, with a value of 1.54%, BBY is in line with its industry, outperforming 56.56% of the companies in the same industry.
- In the last couple of years the Profit Margin of BBY has declined.
- With a decent Operating Margin value of 4.16%, BBY is doing good in the industry, outperforming 60.66% of the companies in the same industry.
- In the last couple of years the Operating Margin of BBY has declined.
- The Gross Margin of BBY (22.50%) is worse than 77.87% 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.
- The number of shares outstanding for BBY has been reduced compared to 1 year ago.
- The number of shares outstanding for BBY has been reduced compared to 5 years ago.
- The debt/assets ratio for BBY is higher compared to a year ago.
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.
- BBY's Debt to FCF ratio of 0.77 is amongst the best of the industry. BBY outperforms 81.15% of its industry peers.
- A Debt/Equity ratio of 0.44 indicates that BBY is not too dependend on debt financing.
- BBY has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: BBY outperforms 56.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.03
WACC9.48%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that BBY should not have too much problems paying its short term obligations.
- BBY's Current ratio of 1.05 is on the low side compared to the rest of the industry. BBY is outperformed by 72.13% of its industry peers.
- BBY has a Quick Ratio of 1.05. This is a bad value and indicates that BBY is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.26, BBY is doing worse than 82.79% of the companies in the same industry.
| 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 9.95% on average per year.
- Based on estimates for the next years, BBY will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y0.05%
EPS Next 2Y3.23%
EPS Next 3Y5.19%
EPS Next 5Y9.95%
Revenue Next Year1.35%
Revenue Next 2Y1.36%
Revenue Next 3Y1.53%
Revenue Next 5Y2.25%
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.
- 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
- BBY is valuated reasonably with a Price/Earnings ratio of 10.16.
- Compared to the rest of the industry, the Price/Earnings ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 85.25% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (28.30), we can say BBY is valued rather cheaply.
- BBY is valuated reasonably with a Price/Forward Earnings ratio of 9.57.
- Based on the Price/Forward Earnings ratio, BBY is valued cheaply inside the industry as 86.07% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. BBY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 87.70% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BBY is valued cheaper than 86.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.03 | ||
| EV/EBITDA | 5.39 |
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.
- The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)207.73
PEG (5Y)12.65
EPS Next 2Y3.23%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
- BBY has a Yearly Dividend Yield of 5.67%, which is a nice return.
- The stock price of BBY dropped by -20.75% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- BBY's Dividend Yield is rather good when compared to the industry average which is at 2.15. BBY pays more dividend than 95.08% of the companies in the same industry.
- BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
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
- 124.34% of the earnings are spent on dividend by BBY. This is not a sustainable payout ratio.
- BBY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP124.34%
EPS Next 2Y3.23%
EPS Next 3Y5.19%
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.
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 6 / 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 0.05% 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 7 / 10 and the dividend payout ratio is 124.34%.