BEST BUY CO INC (BBY) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:BBY • US0865161014

65.9 USD
+0.8 (+1.23%)
At close: Feb 2, 2026
65.7603 USD
-0.14 (-0.21%)
After Hours: 2/2/2026, 8:04:00 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to BBY. BBY was compared to 121 industry peers in the Specialty Retail industry. While BBY has a great profitability rating, there are some minor concerns on its financial health. BBY is cheap, but on the other hand it scores bad on growth. BBY also has an excellent dividend rating. With these ratings, BBY could be worth investigating further for value and dividend investing!.


Dividend Valuation Growth Profitability Health

7

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.
  • Each year in the past 5 years BBY had a positive operating cash flow.
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 1B 2B 3B 4B

1.2 Ratios

  • The Return On Assets of BBY (3.84%) is better than 62.81% of its industry peers.
  • BBY has a better Return On Equity (24.31%) than 82.64% of its industry peers.
  • The Return On Invested Capital of BBY (19.52%) is better than 87.60% of its industry peers.
  • BBY had an Average Return On Invested Capital over the past 3 years of 19.35%. This is significantly above the industry average of 12.11%.
  • The last Return On Invested Capital (19.52%) for BBY is above the 3 year average (19.35%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.84%
ROE 24.31%
ROIC 19.52%
ROA(3y)7.85%
ROA(5y)9.4%
ROE(3y)41.48%
ROE(5y)48.98%
ROIC(3y)19.35%
ROIC(5y)22.54%
BBY Yearly ROA, ROE, ROICBBY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • BBY's Profit Margin of 1.54% is in line compared to the rest of the industry. BBY outperforms 56.20% of its industry peers.
  • BBY's Profit Margin has declined in the last couple of years.
  • BBY has a better Operating Margin (4.22%) than 61.16% of its industry peers.
  • BBY's Operating Margin has declined in the last couple of years.
  • BBY's Gross Margin of 22.50% is on the low side compared to the rest of the industry. BBY is outperformed by 77.69% of its industry peers.
  • BBY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.22%
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%
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 5 10 15 20

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6

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.
  • The number of shares outstanding for BBY has been reduced compared to 1 year ago.
  • BBY has less shares outstanding than it did 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 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 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.64 indicates that BBY is not in any danger for bankruptcy at the moment.
  • BBY has a better Altman-Z score (3.64) than 80.17% of its industry peers.
  • The Debt to FCF ratio of BBY is 0.77, which is an excellent value as it means it would take BBY, only 0.77 years of fcf income to pay off all of its debts.
  • BBY has a Debt to FCF ratio of 0.77. This is amongst the best in the industry. BBY outperforms 80.99% of its industry peers.
  • A Debt/Equity ratio of 0.44 indicates that BBY is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.44, BBY is in line with its industry, outperforming 54.55% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 0.77
Altman-Z 3.64
ROIC/WACC2.04
WACC9.55%
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 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 1.05 indicates that BBY should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.05, BBY is doing worse than 71.90% of the companies in the same industry.
  • 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.
  • With a Quick ratio value of 0.26, BBY is not doing good in the industry: 82.64% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 0.26
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 2B 4B 6B 8B 10B

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3

3. Growth

3.1 Past

  • The earnings per share for BBY have decreased by -1.69% in the last year.
  • The Earnings Per Share has been growing slightly by 0.80% on average over the past years.
  • Looking at the last year, BBY shows a decrease in Revenue. The Revenue has decreased by -0.95% in the last year.
  • The Revenue has been decreasing by -0.99% on average over the past years.
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.
  • The Revenue is expected to grow by 2.25% on average over the next years.
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.
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. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.28, the valuation of BBY can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 85.12% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.41, BBY is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.69, the valuation of BBY can be described as very reasonable.
  • BBY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 85.95% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of BBY to the average of the S&P500 Index (25.64), we can say BBY is valued rather cheaply.
Industry RankSector Rank
PE 10.28
Fwd PE 9.69
BBY Price Earnings VS Forward Price EarningsBBY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 87.60% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, BBY is valued cheaper than 86.78% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.15
EV/EBITDA 5.34
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)210.28
PEG (5Y)12.81
EPS Next 2Y3.23%
EPS Next 3Y5.19%

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7

5. Dividend

5.1 Amount

  • BBY has a Yearly Dividend Yield of 5.83%, which is a nice return.
  • BBY's Dividend Yield is rather good when compared to the industry average which is at 2.20. BBY pays more dividend than 93.39% of the companies in the same industry.
  • BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 5.83%

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
BBY Yearly Dividends per shareBBY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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%
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 1B 2B 3B 4B
BBY Dividend Payout.BBY Dividend Payout, showing the Payout Ratio.BBY Dividend Payout.PayoutRetained Earnings

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BEST BUY CO INC

NYSE:BBY (2/2/2026, 8:04:00 PM)

After market: 65.7603 -0.14 (-0.21%)

65.9

+0.8 (+1.23%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-25
Earnings (Next)02-26
Inst Owners90.4%
Inst Owner Change1%
Ins Owners0.33%
Ins Owner Change0.21%
Market Cap13.85B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target84.35 (28%)
Short Float %9.87%
Short Ratio4.38
Dividend
Industry RankSector Rank
Dividend Yield 5.83%
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)-1.08%
PT rev (3m)3.55%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 10.28
Fwd PE 9.69
P/S 0.33
P/FCF 9.15
P/OCF 6.23
P/B 5.22
P/tB 7.6
EV/EBITDA 5.34
EPS(TTM)6.41
EY9.73%
EPS(NY)6.8
Fwd EY10.32%
FCF(TTM)7.21
FCFY10.93%
OCF(TTM)10.57
OCFY16.04%
SpS199.07
BVpS12.63
TBVpS8.67
PEG (NY)210.28
PEG (5Y)12.81
Graham Number42.68
Profitability
Industry RankSector Rank
ROA 3.84%
ROE 24.31%
ROCE 26.42%
ROIC 19.52%
ROICexc 22.65%
ROICexgc 26.48%
OM 4.22%
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 RankSector Rank
Debt/Equity 0.44
Debt/FCF 0.77
Debt/EBITDA 0.44
Cap/Depr 83.77%
Cap/Sales 1.69%
Interest Coverage 250
Cash Conversion 85.19%
Profit Quality 234.73%
Current Ratio 1.05
Quick Ratio 0.26
Altman-Z 3.64
F-Score7
WACC9.55%
ROIC/WACC2.04
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 Y0.05%
EPS Next 2Y3.23%
EPS Next 3Y5.19%
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 Year1.35%
Revenue Next 2Y1.36%
Revenue Next 3Y1.53%
Revenue Next 5Y2.25%
EBIT growth 1Y-0.9%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year52.7%
EBIT Next 3Y18.05%
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 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 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%.