BEST BUY CO INC (BBY) Fundamental Analysis & Valuation
NYSE:BBY • US0865161014
Current stock price
64.5 USD
+0.19 (+0.3%)
At close:
64.5 USD
0 (0%)
After Hours:
This BBY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. BBY Profitability Analysis
1.1 Basic Checks
- BBY had positive earnings in the past year.
- BBY had a positive operating cash flow in the past year.
- BBY had positive earnings in each of the past 5 years.
- Each year in the past 5 years BBY had a positive operating cash flow.
1.2 Ratios
- BBY has a better Return On Assets (7.29%) than 79.67% of its industry peers.
- BBY has a Return On Equity of 36.07%. This is amongst the best in the industry. BBY outperforms 88.62% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 18.65%, BBY belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BBY is significantly above the industry average of 13.27%.
- The last Return On Invested Capital (18.65%) for BBY is above the 3 year average (18.44%), which is a sign of increasing profitability.
| Industry Rank | Sector 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)18.44%
ROIC(5y)21.75%
1.3 Margins
- BBY has a better Profit Margin (2.56%) than 64.23% of its industry peers.
- In the last couple of years the Profit Margin of BBY has declined.
- BBY has a Operating Margin of 4.25%. This is in the better half of the industry: BBY outperforms 65.85% of its industry peers.
- BBY's Operating Margin has declined in the last couple of years.
- BBY has a Gross Margin of 22.48%. This is in the lower half of the industry: BBY underperforms 74.80% of its industry peers.
- BBY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.25% | ||
| PM (TTM) | 2.56% | ||
| GM | 22.48% |
OM growth 3Y0.02%
OM growth 5Y-5.17%
PM growth 3Y-5.77%
PM growth 5Y-7.59%
GM growth 3Y1.64%
GM growth 5Y0.06%
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.
- 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.
- BBY has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of BBY is 0.93, which is an excellent value as it means it would take BBY, only 0.93 years of fcf income to pay off all of its debts.
- BBY's Debt to FCF ratio of 0.93 is amongst the best of the industry. BBY outperforms 81.30% of its industry peers.
- BBY has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
- BBY has a Debt to Equity ratio (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | N/A |
ROIC/WACC2.18
WACC8.57%
2.3 Liquidity
- BBY has a Current Ratio of 1.11. 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 1.11, BBY is doing worse than 64.23% of the companies in the same industry.
- A Quick Ratio of 0.43 indicates that BBY may have some problems paying its short term obligations.
- BBY's Quick ratio of 0.43 is in line compared to the rest of the industry. BBY outperforms 40.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.43 |
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%.
- BBY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.05% yearly.
- The Revenue has been growing slightly by 0.39% in the past year.
- BBY shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.48% yearly.
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
- Based on estimates for the next years, BBY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
- The Revenue is expected to grow by 1.98% on average over the next years.
EPS Next Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. BBY Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.02, the valuation of BBY can be described as very reasonable.
- BBY's Price/Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 85.37% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.60, BBY is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.58 indicates a reasonable valuation of BBY.
- BBY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 85.37% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BBY to the average of the S&P500 Index (22.84), we can say BBY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.58 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 86.18% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BBY is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.74 | ||
| EV/EBITDA | 4.98 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BBY does not grow enough to justify the current Price/Earnings ratio.
- BBY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y6.26%
EPS Next 3Y11.82%
5. BBY Dividend Analysis
5.1 Amount
- BBY has a Yearly Dividend Yield of 6.10%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.77, BBY pays a better dividend. On top of this BBY pays more dividend than 92.68% of the companies listed in the same industry.
- BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
5.2 History
- The dividend of BBY is nicely growing with an annual growth rate of 11.46%!
- BBY has paid a dividend for at least 10 years, which is a reliable track record.
- BBY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.46%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
- BBY pays out 74.93% 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.
DP74.93%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
BBY Fundamentals: All Metrics, Ratios and Statistics
64.5
+0.19 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03 2026-03-03/bmo
Earnings (Next)05-27 2026-05-27
Inst Owners99.32%
Inst Owner Change11.64%
Ins Owners0.33%
Ins Owner Change4.52%
Market Cap13.52B
Revenue(TTM)41.69B
Net Income(TTM)1.07B
Analysts68
Price Target74.79 (15.95%)
Short Float %11.92%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
Yearly Dividend3.81
Dividend Growth(5Y)11.46%
DP74.93%
Div Incr Years15
Div Non Decr Years15
Ex-Date03-24 2026-03-24 (0.96)
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)-7.64%
PT rev (3m)-12.3%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.58 | ||
| P/S | 0.32 | ||
| P/FCF | 10.74 | ||
| P/OCF | 6.89 | ||
| P/B | 4.56 | ||
| P/tB | 6.22 | ||
| EV/EBITDA | 4.98 |
EPS(TTM)6.44
EY9.98%
EPS(NY)6.73
Fwd EY10.43%
FCF(TTM)6
FCFY9.31%
OCF(TTM)9.36
OCFY14.52%
SpS198.96
BVpS14.15
TBVpS10.38
PEG (NY)2.23
PEG (5Y)N/A
Graham Number45.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 36.07% | ||
| ROCE | 25.33% | ||
| ROIC | 18.65% | ||
| ROICexc | 24.83% | ||
| ROICexgc | 29.22% | ||
| 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)18.44%
ROIC(5y)21.75%
ROICexc(3y)23.94%
ROICexc(5y)31.53%
ROICexgc(3y)30.16%
ROICexgc(5y)46.4%
ROCE(3y)25.04%
ROCE(5y)29.53%
ROICexgc growth 3Y-11.97%
ROICexgc growth 5Y-22.25%
ROICexc growth 3Y-5.3%
ROICexc growth 5Y-16.45%
OM growth 3Y0.02%
OM growth 5Y-5.17%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.93 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 84.72% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.4% | ||
| Profit Quality | 117.68% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | N/A |
F-Score7
WACC8.57%
ROIC/WACC2.18
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 Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
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-3.41%
EBIT growth 5Y-7.52%
EBIT Next Year51.61%
EBIT Next 3Y20.35%
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 10.02 and the Price/Book (PB) ratio is 4.56.
How financially healthy is BEST BUY CO INC?
The financial health rating of BEST BUY CO INC (BBY) is 5 / 10.