BEST BUY CO INC (BBY) Fundamental Analysis & Valuation

NYSE:BBY • US0865161014

Current stock price

60.85 USD
-1.52 (-2.44%)
At close:
61.06 USD
+0.21 (+0.35%)
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

  • In the past year BBY was profitable.
  • BBY had a positive operating cash flow in the past year.
  • In the past 5 years BBY has always been profitable.
  • In the past 5 years BBY always reported a positive cash flow from operatings.
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 better Return On Assets (7.29%) than 80.33% of its industry peers.
  • BBY's Return On Equity of 36.07% is amongst the best of the industry. BBY outperforms 87.70% of its industry peers.
  • BBY's Return On Invested Capital of 18.65% is amongst the best of the industry. BBY outperforms 86.07% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for BBY is above the industry average of 13.64%.
  • The 3 year average ROIC (18.51%) 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)18.51%
ROIC(5y)21.79%
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

  • BBY has a better Profit Margin (2.56%) than 64.75% of its industry peers.
  • BBY's Profit Margin has declined in the last couple of years.
  • The Operating Margin of BBY (4.25%) is better than 65.57% of its industry peers.
  • BBY's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 22.48%, BBY is not doing good in the industry: 74.59% 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 4.25%
PM (TTM) 2.56%
GM 22.48%
OM growth 3Y0.42%
OM growth 5Y-4.94%
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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6

2. BBY Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBY is creating value.
  • BBY has less shares outstanding than it did 1 year ago.
  • 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

  • BBY has an Altman-Z score of 4.21. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of BBY (4.21) is better than 82.79% of its industry peers.
  • BBY has a debt to FCF ratio of 0.93. This is a very positive value and a sign of high solvency as it would only need 0.93 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.93, BBY is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
  • BBY has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
  • BBY's Debt to Equity ratio of 0.39 is in line compared to the rest of the industry. BBY outperforms 54.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.93
Altman-Z 4.21
ROIC/WACC2.21
WACC8.43%
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.
  • The Current ratio of BBY (1.11) is worse than 65.57% of its industry peers.
  • BBY has a Quick Ratio of 1.11. 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 (0.43) is worse than 63.11% of 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

  • BBY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.94%.
  • The Earnings Per Share has been decreasing by -4.05% on average over the past years.
  • BBY shows a small growth in Revenue. In the last year, the Revenue has grown by 0.39%.
  • The Revenue has been decreasing by -2.48% on average over the past years.
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

  • BBY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.97% yearly.
  • BBY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.98% yearly.
EPS Next Y2.03%
EPS Next 2Y4.82%
EPS Next 3Y6.29%
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

  • BBY is valuated reasonably with a Price/Earnings ratio of 9.45.
  • Based on the Price/Earnings ratio, BBY is valued cheaply inside the industry as 89.34% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.18. BBY is valued rather cheaply when compared to this.
  • BBY is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
  • Based on the Price/Forward Earnings ratio, BBY is valued cheaply inside the industry as 88.52% of the companies are valued more expensively.
  • BBY is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.45
Fwd PE 9.26
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

  • 89.34% 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 somewhat cheap valuation: BBY is cheaper than 79.51% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.11
EV/EBITDA 4.67
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)4.66
PEG (5Y)N/A
EPS Next 2Y4.82%
EPS Next 3Y6.29%

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

8

5. BBY Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.95%, BBY is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.39, BBY pays a better dividend. On top of this BBY pays more dividend than 94.26% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, BBY pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.95%

5.2 History

  • On average, the dividend of BBY grows each year by 11.48%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.48%
Div Incr Years15
Div Non Decr Years15
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

  • 74.93% of the earnings are spent on dividend by BBY. 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.
DP74.93%
EPS Next 2Y4.82%
EPS Next 3Y6.29%
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 (4/13/2026, 8:10:13 PM)

Premarket: 61.06 +0.21 (+0.35%)

60.85

-1.52 (-2.44%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-27
Inst Owners100.2%
Inst Owner Change0.08%
Ins Owners0.39%
Ins Owner Change4.23%
Market Cap12.72B
Revenue(TTM)41.69B
Net Income(TTM)1.07B
Analysts68
Price Target74.52 (22.47%)
Short Float %9.49%
Short Ratio3.76
Dividend
Industry RankSector Rank
Dividend Yield 5.95%
Yearly Dividend3.81
Dividend Growth(5Y)11.48%
DP74.93%
Div Incr Years15
Div Non Decr Years15
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)-7.97%
PT rev (3m)-12.61%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)-2.36%
EPS NY rev (3m)-3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-1.56%
Valuation
Industry RankSector Rank
PE 9.45
Fwd PE 9.26
P/S 0.31
P/FCF 10.11
P/OCF 6.49
P/B 4.29
P/tB 5.96
EV/EBITDA 4.67
EPS(TTM)6.44
EY10.58%
EPS(NY)6.57
Fwd EY10.8%
FCF(TTM)6.02
FCFY9.89%
OCF(TTM)9.38
OCFY15.42%
SpS199.37
BVpS14.17
TBVpS10.21
PEG (NY)4.66
PEG (5Y)N/A
Graham Number45.32
Profitability
Industry RankSector Rank
ROA 7.29%
ROE 36.07%
ROCE 25.33%
ROIC 18.65%
ROICexc 24.83%
ROICexgc 29.48%
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)18.51%
ROIC(5y)21.79%
ROICexc(3y)24.03%
ROICexc(5y)31.59%
ROICexgc(3y)30.36%
ROICexgc(5y)46.53%
ROCE(3y)25.14%
ROCE(5y)29.59%
ROICexgc growth 3Y-11.37%
ROICexgc growth 5Y-21.92%
ROICexc growth 3Y-4.93%
ROICexc growth 5Y-16.25%
OM growth 3Y0.42%
OM growth 5Y-4.94%
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 40.25
Cash Conversion 75.4%
Profit Quality 117.68%
Current Ratio 1.11
Quick Ratio 0.43
Altman-Z 4.21
F-Score7
WACC8.43%
ROIC/WACC2.21
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 Y2.03%
EPS Next 2Y4.82%
EPS Next 3Y6.29%
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-3.03%
EBIT growth 5Y-7.3%
EBIT Next Year51.67%
EBIT Next 3Y17.92%
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.


Can you provide the profitability details for BEST BUY CO INC?

BEST BUY CO INC (BBY) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for BBY stock?

The Price/Earnings (PE) ratio for BEST BUY CO INC (BBY) is 9.45 and the Price/Book (PB) ratio is 4.29.


How financially healthy is BEST BUY CO INC?

The financial health rating of BEST BUY CO INC (BBY) is 6 / 10.