BEST BUY CO INC (BBY) Stock Fundamental Analysis

NYSE:BBY • US0865161014

61.18 USD
-1.68 (-2.67%)
Last: Feb 27, 2026, 02:38 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

BBY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. BBY scores excellent on profitability, but 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. This makes BBY very considerable 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.
  • BBY had a positive operating cash flow in each of the past 5 years.
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 65.85% of its industry peers.
  • BBY's Return On Equity of 24.31% is amongst the best of the industry. BBY outperforms 83.74% of its industry peers.
  • With an excellent Return On Invested Capital value of 19.52%, BBY belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 11.89%.
  • 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

  • Looking at the Profit Margin, with a value of 1.54%, BBY is in line with its industry, outperforming 57.72% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BBY has declined.
  • BBY has a Operating Margin of 4.22%. This is in the better half of the industry: BBY outperforms 62.60% 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: 75.61% 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBY 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 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 3.62 indicates that BBY is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of BBY (3.62) is better than 79.67% 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's Debt to FCF ratio of 0.77 is amongst the best of the industry. BBY outperforms 81.30% 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 53.66% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 0.77
Altman-Z 3.62
ROIC/WACC2.11
WACC9.27%
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.
  • BBY's Current ratio of 1.05 is on the low side compared to the rest of the industry. BBY is outperformed by 69.92% of its industry peers.
  • 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.
  • BBY's Quick ratio of 0.26 is on the low side compared to the rest of the industry. BBY is outperformed by 80.49% 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

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

3

3. Growth

3.1 Past

  • The earnings per share for BBY have decreased by -1.69% in the last year.
  • Measured over the past 5 years, BBY shows a small growth in Earnings Per Share. The EPS has been growing by 0.80% on average per year.
  • BBY shows a decrease in Revenue. In the last year, the revenue decreased by -0.95%.
  • 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)-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 small growth in Earnings Per Share. The EPS will grow by 7.44% on average per year.
  • The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y3%
EPS Next 3Y4.93%
EPS Next 5Y7.44%
Revenue Next Year1.27%
Revenue Next 2Y1.26%
Revenue Next 3Y1.43%
Revenue Next 5Y2.11%

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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • BBY is valuated reasonably with a Price/Earnings ratio of 9.54.
  • Compared to the rest of the industry, the Price/Earnings ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 87.80% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.11, BBY is valued rather cheaply.
  • The Price/Forward Earnings ratio is 9.04, which indicates a very decent valuation of BBY.
  • BBY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 90.24% of the companies in the same industry.
  • BBY is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.54
Fwd PE 9.04
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

  • Based on the Enterprise Value to EBITDA ratio, BBY is valued cheaply inside the industry as 91.06% of the companies are valued more expensively.
  • BBY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBY is cheaper than 86.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.47
EV/EBITDA 5.15
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)11.89
EPS Next 2Y3%
EPS Next 3Y4.93%

More info and screens

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

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 5.73%, BBY is a good candidate for dividend investing.
  • In the last 3 months the price of BBY has falen by -20.71%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 2.30, 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 1.80, BBY pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.73%

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 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

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Find the best dividend stocksShow peers with best dividend

BEST BUY CO INC

NYSE:BBY (2/27/2026, 2:38:03 PM)

61.18

-1.68 (-2.67%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-25
Earnings (Next)03-03
Inst Owners90.4%
Inst Owner Change9.95%
Ins Owners0.33%
Ins Owner Change0.21%
Market Cap12.82B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target83.01 (35.68%)
Short Float %11.71%
Short Ratio5.11
Dividend
Industry RankSector Rank
Dividend Yield 5.73%
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)-1.59%
PT rev (3m)-0.37%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-2.09%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 9.54
Fwd PE 9.04
P/S 0.31
P/FCF 8.47
P/OCF 5.77
P/B 4.83
P/tB 7.04
EV/EBITDA 5.15
EPS(TTM)6.41
EY10.48%
EPS(NY)6.77
Fwd EY11.06%
FCF(TTM)7.23
FCFY11.81%
OCF(TTM)10.6
OCFY17.32%
SpS199.6
BVpS12.66
TBVpS8.7
PEG (NY)N/A
PEG (5Y)11.89
Graham Number42.73
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 3.62
F-Score7
WACC9.27%
ROIC/WACC2.11
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 5Y7.44%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%2.4%
Revenue Next Year1.27%
Revenue Next 2Y1.26%
Revenue Next 3Y1.43%
Revenue Next 5Y2.11%
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 5Y13.45%
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%.