BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBY - US0865161014 - Common Stock
71.83 USD
+0.07 (+0.1%)
71.83 USD
0 (0%)
Taking everything into account, BBY scores 5 out of 10 in our fundamental rating. BBY was compared to 123 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. These ratings could make BBY a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year BBY was profitable.
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.
1.2 Ratios
With a decent Return On Assets value of 3.84%, BBY is doing good in the industry, outperforming 64.23% 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 82.93% of the companies in the same industry.
BBY's Return On Invested Capital of 19.29% is amongst the best of the industry. BBY outperforms 87.80% 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 12.18%.
| 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
The Profit Margin of BBY (1.54%) is comparable to the rest of the industry.
BBY's Profit Margin has declined in the last couple of years.
BBY's Operating Margin of 4.16% is fine compared to the rest of the industry. BBY outperforms 60.98% of its industry peers.
BBY's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 22.50%, BBY is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBY 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.
Compared to 1 year ago, BBY has a worse debt to assets ratio.
2.2 Solvency
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.
The Debt to FCF ratio of BBY (0.77) is better than 81.30% 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.
The Debt to Equity ratio of BBY (0.44) 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/WACC2.05
WACC9.39%
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 73.17% of its industry peers.
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 84.55% 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%.
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.
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 9.76% yearly.
The Revenue is expected to grow by 2.13% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y3.25%
EPS Next 3Y5.28%
EPS Next 5Y9.76%
Revenue Next Year1.35%
Revenue Next 2Y1.33%
Revenue Next 3Y1.55%
Revenue Next 5Y2.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 11.21, which indicates a very decent valuation of BBY.
BBY's Price/Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 84.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (26.39), we can say BBY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.56, the valuation of BBY can be described as reasonable.
84.55% of the companies in the same industry are more expensive than BBY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, BBY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
82.11% 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 87.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)13.96
EPS Next 2Y3.25%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
BBY has a Yearly Dividend Yield of 5.30%, which is a nice return.
Compared to an average industry Dividend Yield of 1.98, BBY pays a better dividend. On top of this BBY pays more dividend than 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, BBY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
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 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
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 2Y3.25%
EPS Next 3Y5.28%
71.83
+0.07 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.22%
Inst Owner Change-2.08%
Ins Owners0.33%
Ins Owner Change0.21%
Market Cap15.09B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target85.62 (19.2%)
Short Float %6.15%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP124.34%
Div Incr Years14
Div Non Decr Years14
Ex-Date
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)5.1%
PT rev (3m)6.44%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)1.07%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.56 | ||
| P/S | 0.36 | ||
| P/FCF | 9.97 | ||
| P/OCF | 6.79 | ||
| P/B | 5.69 | ||
| P/tB | 8.1 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)6.41
EY8.92%
EPS(NY)6.8
Fwd EY9.47%
FCF(TTM)7.21
FCFY10.03%
OCF(TTM)10.57
OCFY14.72%
SpS199.07
BVpS12.63
TBVpS8.87
PEG (NY)N/A
PEG (5Y)13.96
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
WACC9.39%
ROIC/WACC2.05
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 2Y3.25%
EPS Next 3Y5.28%
EPS Next 5Y9.76%
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 2Y1.33%
Revenue Next 3Y1.55%
Revenue Next 5Y2.13%
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 5Y12.62%
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.
Can you provide the valuation status for BEST BUY CO INC?
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.
Can you provide the PE and PB ratios for BBY stock?
The Price/Earnings (PE) ratio for BEST BUY CO INC (BBY) is 11.21 and the Price/Book (PB) ratio is 5.69.
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%.