BEST BUY CO INC (BBY) Fundamental Analysis & Valuation

NYSE:BBY • US0865161014

Current stock price

62.8 USD
-1.39 (-2.17%)
At close:
63.78 USD
+0.98 (+1.56%)
Pre-Market:

This BBY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. BBY Profitability Analysis

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.
  • 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 2026 1B 2B 3B 4B

1.2 Ratios

  • BBY has a Return On Assets of 7.29%. This is amongst the best in the industry. BBY outperforms 80.49% of its industry peers.
  • Looking at the Return On Equity, with a value of 36.07%, BBY belongs to the top of the industry, outperforming 88.62% of the companies in the same industry.
  • BBY has a better Return On Invested Capital (18.65%) than 87.80% of its industry peers.
  • BBY had an Average Return On Invested Capital over the past 3 years of 18.44%. This is above the industry average of 13.47%.
  • The 3 year average ROIC (18.44%) for BBY is below the current ROIC(18.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.29%
ROE 36.07%
ROIC 18.65%
ROA(3y)7.28%
ROA(5y)8.97%
ROE(3y)36.58%
ROE(5y)48.35%
ROIC(3y)18.44%
ROIC(5y)21.75%
BBY Yearly ROA, ROE, ROICBBY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60 80

1.3 Margins

  • With a decent Profit Margin value of 2.56%, BBY is doing good in the industry, outperforming 65.04% of the companies in the same industry.
  • BBY's Profit Margin has declined in the last couple of years.
  • BBY has a better Operating Margin (4.25%) than 65.04% of its industry peers.
  • In the last couple of years the Operating Margin of BBY has declined.
  • Looking at the Gross Margin, with a value of 22.48%, BBY is doing worse than 75.61% of the companies in the same industry.
  • BBY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.25%
PM (TTM) 2.56%
GM 22.48%
OM growth 3Y0.02%
OM growth 5Y-5.17%
PM growth 3Y-5.77%
PM growth 5Y-7.59%
GM growth 3Y1.64%
GM growth 5Y0.06%
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 2026 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. BBY Health Analysis

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.
BBY Yearly Shares OutstandingBBY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2026 5B 10B 15B

2.2 Solvency

  • The Debt to FCF ratio of BBY is 0.93, which is an excellent value as it means it would take BBY, only 0.93 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.93, BBY belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
  • A Debt/Equity ratio of 0.39 indicates that BBY is not too dependend on debt financing.
  • The Debt to Equity ratio of BBY (0.39) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.93
Altman-Z N/A
ROIC/WACC2.17
WACC8.6%
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 2026 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 1.11 indicates that BBY should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.11, BBY is doing worse than 65.04% of the companies in the same industry.
  • A Quick Ratio of 0.43 indicates that BBY may have some problems paying its short term obligations.
  • BBY has a Quick ratio (0.43) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.43
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 2026 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. BBY Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 0.94% over the past year.
  • Measured over the past years, BBY shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.05% on average per year.
  • The Revenue has been growing slightly by 0.39% in the past year.
  • Measured over the past years, BBY shows a decrease in Revenue. The Revenue has been decreasing by -2.48% on average per year.
EPS 1Y (TTM)0.94%
EPS 3Y-3.2%
EPS 5Y-4.05%
EPS Q2Q%1.16%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y-3.43%
Revenue growth 5Y-2.48%
Sales Q2Q%-0.96%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.97% 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 1.98% on average per year.
EPS Next Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
EPS Next 5Y10.97%
Revenue Next Year0%
Revenue Next 2Y0.69%
Revenue Next 3Y1.05%
Revenue Next 5Y1.98%

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

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7

4. BBY Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.75, the valuation of BBY can be described as reasonable.
  • BBY's Price/Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 86.18% 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 25.23.
  • With a Price/Forward Earnings ratio of 9.33, the valuation of BBY can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, BBY is valued cheaper than 85.37% of the companies in the same industry.
  • BBY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.42.
Industry RankSector Rank
PE 9.75
Fwd PE 9.33
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 87.80% of the companies listed in the same industry.
  • 80.49% 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 10.46
EV/EBITDA 4.84
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 an expensive valuation of the company.
  • The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)N/A
EPS Next 2Y6.26%
EPS Next 3Y11.82%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. BBY Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.98%, BBY is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.79, BBY pays a better dividend. On top of this BBY pays more dividend than 91.06% 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 1.89.
Industry RankSector Rank
Dividend Yield 5.98%

5.2 History

  • The dividend of BBY is nicely growing with an annual growth rate of 11.46%!
  • 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)11.46%
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 2026 1 2 3

5.3 Sustainability

  • BBY pays out 74.93% 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.
DP74.93%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
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 2026 1B 2B 3B 4B
BBY Dividend Payout.BBY Dividend Payout, showing the Payout Ratio.BBY Dividend Payout.PayoutRetained Earnings

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BBY Fundamentals: All Metrics, Ratios and Statistics

BEST BUY CO INC

NYSE:BBY (3/20/2026, 8:04:00 PM)

Premarket: 63.78 +0.98 (+1.56%)

62.8

-1.39 (-2.17%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-27
Inst Owners99.32%
Inst Owner Change11.64%
Ins Owners0.33%
Ins Owner Change0.4%
Market Cap13.16B
Revenue(TTM)41.69B
Net Income(TTM)1.07B
Analysts67.74
Price Target80.97 (28.93%)
Short Float %12.56%
Short Ratio4.85
Dividend
Industry RankSector Rank
Dividend Yield 5.98%
Yearly Dividend3.81
Dividend Growth(5Y)11.46%
DP74.93%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-24
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.39%
Min EPS beat(2)4.81%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)4.94%
Min EPS beat(4)4.41%
Max EPS beat(4)5.96%
EPS beat(8)7
Avg EPS beat(8)5.96%
EPS beat(12)11
Avg EPS beat(12)6.54%
EPS beat(16)14
Avg EPS beat(16)9.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-0.14%
Revenue beat(4)1
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.85%
Revenue beat(12)2
Avg Revenue beat(12)-0.95%
Revenue beat(16)4
Avg Revenue beat(16)-0.59%
PT rev (1m)-2.46%
PT rev (3m)-5.42%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.45%
Valuation
Industry RankSector Rank
PE 9.75
Fwd PE 9.33
P/S 0.32
P/FCF 10.46
P/OCF 6.71
P/B 4.44
P/tB 6.05
EV/EBITDA 4.84
EPS(TTM)6.44
EY10.25%
EPS(NY)6.73
Fwd EY10.72%
FCF(TTM)6
FCFY9.56%
OCF(TTM)9.36
OCFY14.91%
SpS198.96
BVpS14.15
TBVpS10.38
PEG (NY)2.17
PEG (5Y)N/A
Graham Number45.27
Profitability
Industry RankSector Rank
ROA 7.29%
ROE 36.07%
ROCE 25.33%
ROIC 18.65%
ROICexc 24.83%
ROICexgc 29.22%
OM 4.25%
PM (TTM) 2.56%
GM 22.48%
FCFM 3.02%
ROA(3y)7.28%
ROA(5y)8.97%
ROE(3y)36.58%
ROE(5y)48.35%
ROIC(3y)18.44%
ROIC(5y)21.75%
ROICexc(3y)23.94%
ROICexc(5y)31.53%
ROICexgc(3y)30.16%
ROICexgc(5y)46.4%
ROCE(3y)25.04%
ROCE(5y)29.53%
ROICexgc growth 3Y-11.97%
ROICexgc growth 5Y-22.25%
ROICexc growth 3Y-5.3%
ROICexc growth 5Y-16.45%
OM growth 3Y0.02%
OM growth 5Y-5.17%
PM growth 3Y-5.77%
PM growth 5Y-7.59%
GM growth 3Y1.64%
GM growth 5Y0.06%
F-Score7
Asset Turnover2.84
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.93
Debt/EBITDA 0.45
Cap/Depr 84.72%
Cap/Sales 1.69%
Interest Coverage 250
Cash Conversion 75.4%
Profit Quality 117.68%
Current Ratio 1.11
Quick Ratio 0.43
Altman-Z N/A
F-Score7
WACC8.6%
ROIC/WACC2.17
Cap/Depr(3y)84.12%
Cap/Depr(5y)87.7%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.73%
Profit Quality(3y)107.41%
Profit Quality(5y)97.54%
High Growth Momentum
Growth
EPS 1Y (TTM)0.94%
EPS 3Y-3.2%
EPS 5Y-4.05%
EPS Q2Q%1.16%
EPS Next Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
EPS Next 5Y10.97%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y-3.43%
Revenue growth 5Y-2.48%
Sales Q2Q%-0.96%
Revenue Next Year0%
Revenue Next 2Y0.69%
Revenue Next 3Y1.05%
Revenue Next 5Y1.98%
EBIT growth 1Y2.13%
EBIT growth 3Y-3.41%
EBIT growth 5Y-7.52%
EBIT Next Year51.61%
EBIT Next 3Y20.35%
EBIT Next 5Y13.23%
FCF growth 1Y-9.63%
FCF growth 3Y12.06%
FCF growth 5Y-21.48%
OCF growth 1Y-6.48%
OCF growth 3Y2.46%
OCF growth 5Y-16.82%

BEST BUY CO INC / BBY Fundamental Analysis 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 4.5% 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 8 / 10 and the dividend payout ratio is 74.93%.