BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBY - US0865161014 - Common Stock
66.56 USD
+0.73 (+1.11%)
66.33 USD
-0.23 (-0.35%)
Overall BBY gets a fundamental rating of 5 out of 10. We evaluated BBY against 121 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
- In the past year BBY was profitable.
- In the past year BBY had a positive cash flow from operations.
- BBY had positive earnings in each of the past 5 years.
- Each year in the past 5 years BBY had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.84%, BBY is doing good in the industry, outperforming 62.81% of the companies in the same industry.
- With an excellent Return On Equity value of 24.31%, BBY belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 19.29%, BBY belongs to the top of the industry, outperforming 87.60% 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 12.37%.
| 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.
- With a decent Operating Margin value of 4.16%, BBY is doing good in the industry, outperforming 60.33% 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 77.69% of its industry peers.
- In the last couple of years the Gross Margin of BBY has remained more or less at the same level.
| 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
- 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.
- Compared to 5 years ago, BBY has less shares outstanding
- 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 81.82% 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.
- BBY has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.02
WACC9.57%
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.
- The Current ratio of BBY (1.05) is worse than 71.90% 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 82.64% 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.
- The Revenue has decreased by -0.95% 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)-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
- BBY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.95% yearly.
- 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 Y0.1%
EPS Next 2Y3.28%
EPS Next 3Y5.26%
EPS Next 5Y9.95%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.56%
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.
- 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
- Based on the Price/Earnings ratio of 10.38, the valuation of BBY can be described as reasonable.
- 84.30% of the companies in the same industry are more expensive than BBY, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. BBY is valued rather cheaply when compared to this.
- BBY is valuated reasonably with a Price/Forward Earnings ratio of 9.78.
- BBY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 86.78% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, BBY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
- 87.60% of the companies in the same industry are more expensive than BBY, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 86.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 5.5 |
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)100.01
PEG (5Y)12.94
EPS Next 2Y3.28%
EPS Next 3Y5.26%
5. Dividend
5.1 Amount
- BBY has a Yearly Dividend Yield of 5.58%, which is a nice return.
- The stock price of BBY dropped by -20.06% 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.
- Compared to an average industry Dividend Yield of 2.08, BBY pays a better dividend. On top of this BBY pays more dividend than 93.39% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.86, BBY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
5.2 History
- On average, the dividend of BBY grows each year by 13.38%, 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)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 2Y3.28%
EPS Next 3Y5.26%
66.56
+0.73 (+1.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-25 2025-11-25/bmo
Earnings (Next)03-02 2026-03-02/amc
Inst Owners90.4%
Inst Owner Change0.28%
Ins Owners0.33%
Ins Owner Change0.21%
Market Cap13.98B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target84.35 (26.73%)
Short Float %9.87%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP124.34%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
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)-1.48%
PT rev (3m)5.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0.21%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.33 | ||
| P/FCF | 9.24 | ||
| P/OCF | 6.3 | ||
| P/B | 5.27 | ||
| P/tB | 7.51 | ||
| EV/EBITDA | 5.5 |
EPS(TTM)6.41
EY9.63%
EPS(NY)6.81
Fwd EY10.22%
FCF(TTM)7.21
FCFY10.83%
OCF(TTM)10.57
OCFY15.88%
SpS199.07
BVpS12.63
TBVpS8.87
PEG (NY)100.01
PEG (5Y)12.94
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
WACC9.57%
ROIC/WACC2.02
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 Y0.1%
EPS Next 2Y3.28%
EPS Next 3Y5.26%
EPS Next 5Y9.95%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%2.4%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.56%
Revenue Next 5Y2.25%
EBIT growth 1Y-2.08%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year53.62%
EBIT Next 3Y18.23%
EBIT Next 5Y13.3%
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.
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 0.1% 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%.