BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - NYSE:BBY - US0865161014 - Common Stock
74.25 USD
-0.15 (-0.2%)
BBY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 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 is valued correctly, but it does not seem to be growing. Finally BBY also has an excellent dividend rating. These ratings could make BBY a good candidate for 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 5.10%. This is in the better half of the industry: BBY outperforms 70.49% of its industry peers.
BBY has a Return On Equity of 28.65%. This is amongst the best in the industry. BBY outperforms 86.07% of its industry peers.
BBY has a Return On Invested Capital of 19.01%. This is amongst the best in the industry. BBY outperforms 87.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 11.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 28.65% | ||
| ROIC | 19.01% |
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
With a Profit Margin value of 1.87%, BBY perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
BBY's Profit Margin has declined in the last couple of years.
The Operating Margin of BBY (4.14%) is better than 60.66% of its industry peers.
In the last couple of years the Operating Margin of BBY has declined.
The Gross Margin of BBY (22.54%) 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 | 4.14% | ||
| PM (TTM) | 1.87% | ||
| GM | 22.54% |
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
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.
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 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
BBY has a Debt to FCF ratio of 0.87. This is amongst the best in the industry. BBY outperforms 81.97% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that BBY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, BBY perfoms like the industry average, outperforming 56.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | N/A |
ROIC/WACC2.1
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.04 indicates that BBY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, BBY is doing worse than 72.13% of the companies in the same industry.
BBY has a Quick Ratio of 1.04. This is a bad value and indicates that BBY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BBY (0.36) is worse than 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for BBY have decreased by -4.27% 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.
BBY shows a decrease in Revenue. In the last year, the revenue decreased by -2.21%.
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)-4.27%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.48%
Revenue 1Y (TTM)-2.21%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%1.61%
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 9.82% yearly.
Based on estimates for the next years, BBY will show a small growth in Revenue. The Revenue will grow by 2.16% on average per year.
EPS Next Y-1.16%
EPS Next 2Y2.87%
EPS Next 3Y5.56%
EPS Next 5Y9.82%
Revenue Next Year1.21%
Revenue Next 2Y1.27%
Revenue Next 3Y1.69%
Revenue Next 5Y2.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 11.84, the valuation of BBY can be described as reasonable.
79.51% of the companies in the same industry are more expensive than BBY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (25.46), we can say BBY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.00, the valuation of BBY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBY indicates a somewhat cheap valuation: BBY is cheaper than 72.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.39. BBY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBY indicates a somewhat cheap valuation: BBY is cheaper than 74.59% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 81.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)14.75
EPS Next 2Y2.87%
EPS Next 3Y5.56%
5. Dividend
5.1 Amount
BBY has a Yearly Dividend Yield of 4.99%, which is a nice return.
BBY's Dividend Yield is rather good when compared to the industry average which is at 5.59. BBY pays more dividend than 91.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, BBY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
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
5.3 Sustainability
BBY pays out 103.47% 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.
DP103.47%
EPS Next 2Y2.87%
EPS Next 3Y5.56%
NYSE:BBY (11/19/2025, 2:58:31 PM)
74.25
-0.15 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.62%
Inst Owner Change-2.66%
Ins Owners0.32%
Ins Owner Change2.43%
Market Cap15.60B
Revenue(TTM)41.60B
Net Income(TTM)778.00M
Analysts68.13
Price Target81.46 (9.71%)
Short Float %6.8%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP103.47%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)4.41%
Max EPS beat(2)4.59%
EPS beat(4)3
Avg EPS beat(4)2.96%
Min EPS beat(4)-3.62%
Max EPS beat(4)6.45%
EPS beat(8)7
Avg EPS beat(8)6.44%
EPS beat(12)11
Avg EPS beat(12)10.23%
EPS beat(16)13
Avg EPS beat(16)9.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)3
Avg Revenue beat(12)-0.75%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)1.72%
PT rev (3m)2.72%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)1.54%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11 | ||
| P/S | 0.38 | ||
| P/FCF | 11.54 | ||
| P/OCF | 7.56 | ||
| P/B | 5.74 | ||
| P/tB | 8.63 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)6.27
EY8.44%
EPS(NY)6.75
Fwd EY9.09%
FCF(TTM)6.44
FCFY8.67%
OCF(TTM)9.82
OCFY13.23%
SpS197.99
BVpS12.93
TBVpS8.61
PEG (NY)N/A
PEG (5Y)14.75
Graham Number42.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 28.65% | ||
| ROCE | 25.73% | ||
| ROIC | 19.01% | ||
| ROICexc | 24.29% | ||
| ROICexgc | 29.38% | ||
| OM | 4.14% | ||
| PM (TTM) | 1.87% | ||
| GM | 22.54% | ||
| FCFM | 3.25% |
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 Turnover2.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 83.67% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.16% | ||
| Profit Quality | 173.78% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | N/A |
F-Score7
WACC9.04%
ROIC/WACC2.1
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)-4.27%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.48%
EPS Next Y-1.16%
EPS Next 2Y2.87%
EPS Next 3Y5.56%
EPS Next 5Y9.82%
Revenue 1Y (TTM)-2.21%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%1.61%
Revenue Next Year1.21%
Revenue Next 2Y1.27%
Revenue Next 3Y1.69%
Revenue Next 5Y2.16%
EBIT growth 1Y-3.53%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year52.35%
EBIT Next 3Y18.09%
EBIT Next 5Y11.74%
FCF growth 1Y-26.12%
FCF growth 3Y-17.9%
FCF growth 5Y-5.24%
OCF growth 1Y-23.95%
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.
Can you provide the valuation status for BEST BUY CO INC?
ChartMill assigns a valuation rating of 6 / 10 to BEST BUY CO INC (BBY). This can be considered as Fairly Valued.
How profitable is BEST BUY CO INC (BBY) stock?
BEST BUY CO INC (BBY) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for BBY stock?
The Price/Earnings (PE) ratio for BEST BUY CO INC (BBY) is 11.84 and the Price/Book (PB) ratio is 5.74.
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 103.47%.