BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BBY • US0865161014
65.1 USD
-0.05 (-0.08%)
At close: Jan 30, 2026
65.04 USD
-0.06 (-0.09%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to BBY. BBY was compared to 122 industry peers in the Specialty Retail industry. While BBY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BBY is cheap, but on the other hand it scores bad on growth. 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
- 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.
1.2 Ratios
- BBY has a better Return On Assets (3.84%) than 63.11% of its industry peers.
- BBY has a better Return On Equity (24.31%) than 82.79% of its industry peers.
- The Return On Invested Capital of BBY (19.52%) is better than 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 12.19%.
- The last Return On Invested Capital (19.52%) for BBY is above the 3 year average (19.35%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- BBY has a Profit Margin (1.54%) which 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 4.22% is fine compared to the rest of the industry. BBY outperforms 60.66% of its industry peers.
- In the last couple of years the Operating Margin of BBY has declined.
- With a Gross Margin value of 22.50%, BBY is not doing good in the industry: 77.87% of the companies in the same industry are doing better.
- BBY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBY is creating value.
- Compared to 1 year ago, BBY has less shares outstanding
- The number of shares outstanding for BBY has been reduced compared to 5 years ago.
- Compared to 1 year ago, BBY has a worse debt to assets ratio.
2.2 Solvency
- BBY has an Altman-Z score of 3.64. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.64, BBY belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
- 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 has a better Debt to FCF ratio (0.77) than 81.15% 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 | 3.64 |
ROIC/WACC2.06
WACC9.48%
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.
- Looking at the Current ratio, with a value of 1.05, BBY is doing worse than 72.13% of the companies in the same industry.
- 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 82.79% 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.
- 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
- The Earnings Per Share is expected to grow by 9.95% 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 2.25% on average per year.
EPS Next Y0.05%
EPS Next 2Y3.23%
EPS Next 3Y5.19%
EPS Next 5Y9.95%
Revenue Next Year1.35%
Revenue Next 2Y1.36%
Revenue Next 3Y1.53%
Revenue Next 5Y2.25%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.16 indicates a reasonable valuation of BBY.
- Based on the Price/Earnings ratio, BBY is valued cheaper than 85.25% 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 28.32.
- The Price/Forward Earnings ratio is 9.57, which indicates a very decent valuation of BBY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 86.07% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of BBY to the average of the S&P500 Index (25.57), we can say BBY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
- BBY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBY is cheaper than 87.70% of the companies in the same industry.
- BBY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBY is cheaper than 86.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.03 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- BBY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)207.73
PEG (5Y)12.65
EPS Next 2Y3.23%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.83%, BBY is a good candidate for dividend investing.
- In the last 3 months the price of BBY has falen by -20.75%. 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 2.22, BBY pays a better dividend. On top of this BBY pays more dividend than 93.44% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, BBY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
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
- 124.34% 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.
DP124.34%
EPS Next 2Y3.23%
EPS Next 3Y5.19%
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.
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 6 / 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 0.05% 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%.