BEST BUY CO INC (BBY) Stock Fundamental Analysis

USA New York Stock Exchange NYSE:BBY • US0865161014

67.08 USD
-0.96 (-1.41%)
At close: Feb 11, 2026
66.99 USD
-0.09 (-0.13%)
Pre-Market: 2/12/2026, 6:50:23 AM
Fundamental Rating

6

Overall BBY gets a fundamental rating of 6 out of 10. We evaluated BBY against 120 industry peers in the Specialty Retail industry. While BBY has a great profitability rating, there are some minor concerns on its financial health. 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!.


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years BBY has always been profitable.
  • 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

  • BBY has a better Return On Assets (3.84%) than 63.33% of its industry peers.
  • Looking at the Return On Equity, with a value of 24.31%, BBY belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • The Return On Invested Capital of BBY (19.52%) is better than 87.50% 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 12.31%.
  • The 3 year average ROIC (19.35%) for BBY is below the current ROIC(19.52%), indicating increased profibility in the last year.
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

  • The Profit Margin of BBY (1.54%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of BBY has declined.
  • With a decent Operating Margin value of 4.22%, BBY is doing good in the industry, outperforming 61.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of BBY has declined.
  • BBY's Gross Margin of 22.50% is on the low side compared to the rest of the industry. BBY is outperformed by 77.50% 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

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.
  • BBY has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, BBY has less shares outstanding
  • Compared to 1 year ago, BBY has a worse debt to assets ratio.
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

  • BBY has an Altman-Z score of 3.66. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.66, BBY belongs to the best of the industry, outperforming 80.83% of the companies in the same industry.
  • 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.
  • With an excellent Debt to FCF ratio value of 0.77, BBY belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
  • 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 55.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 0.77
Altman-Z 3.66
ROIC/WACC2.06
WACC9.47%
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

  • 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.
  • With a Current ratio value of 1.05, BBY is not doing good in the industry: 71.67% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.26 indicates that BBY may have some problems paying its short term obligations.
  • BBY has a worse Quick ratio (0.26) than 82.50% of its industry peers.
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

3

3. Growth

3.1 Past

  • The earnings per share for BBY have decreased by -1.69% in the last year.
  • 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

  • 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 Y-0.1%
EPS Next 2Y3%
EPS Next 3Y4.93%
EPS Next 5Y9.95%
Revenue Next Year1.29%
Revenue Next 2Y1.28%
Revenue Next 3Y1.45%
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.
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

7

4. Valuation

4.1 Price/Earnings Ratio

  • BBY is valuated reasonably with a Price/Earnings ratio of 10.46.
  • 84.17% 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 28.18. BBY is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 9.91, the valuation of BBY can be described as very reasonable.
  • 87.50% of the companies in the same industry are more expensive than BBY, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of BBY to the average of the S&P500 Index (28.01), we can say BBY is valued rather cheaply.
Industry RankSector Rank
PE 10.46
Fwd PE 9.91
BBY Price Earnings VS Forward Price EarningsBBY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 88.33% of the companies in the same industry are more expensive than BBY, based on the Enterprise Value to EBITDA ratio.
  • 85.00% of the companies in the same industry are more expensive than BBY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.31
EV/EBITDA 5.5
BBY Per share dataBBY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

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)13.04
EPS Next 2Y3%
EPS Next 3Y4.93%

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 5.57%, BBY is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.26, BBY pays a better dividend. On top of this BBY pays more dividend than 93.33% of the companies listed in the same industry.
  • BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 5.57%

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 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
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

  • 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%
EPS Next 3Y4.93%
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

BEST BUY CO INC

NYSE:BBY (2/11/2026, 8:07:43 PM)

Premarket: 66.99 -0.09 (-0.13%)

67.08

-0.96 (-1.41%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-25
Earnings (Next)02-26
Inst Owners90.4%
Inst Owner Change0.81%
Ins Owners0.33%
Ins Owner Change0.21%
Market Cap14.09B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target83.01 (23.75%)
Short Float %11%
Short Ratio4.6
Dividend
Industry RankSector Rank
Dividend Yield 5.57%
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)-2.66%
PT rev (3m)1.9%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 10.46
Fwd PE 9.91
P/S 0.34
P/FCF 9.31
P/OCF 6.35
P/B 5.31
P/tB 7.74
EV/EBITDA 5.5
EPS(TTM)6.41
EY9.56%
EPS(NY)6.77
Fwd EY10.09%
FCF(TTM)7.21
FCFY10.74%
OCF(TTM)10.57
OCFY15.76%
SpS199.07
BVpS12.63
TBVpS8.67
PEG (NY)N/A
PEG (5Y)13.04
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 3.66
F-Score7
WACC9.47%
ROIC/WACC2.06
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%
EPS Next 3Y4.93%
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 Year1.29%
Revenue Next 2Y1.28%
Revenue Next 3Y1.45%
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 decline 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%.