BEST BUY CO INC (BBY) Fundamental Analysis & Valuation

NYSE:BBY • US0865161014

Current stock price

64.685 USD
+1.3 (+2.04%)
Last:

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

  • BBY had positive earnings in the past year.
  • 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 2026 1B 2B 3B 4B

1.2 Ratios

  • BBY has a Return On Assets of 7.29%. This is amongst the best in the industry. BBY outperforms 80.33% of its industry peers.
  • BBY has a Return On Equity of 36.07%. This is amongst the best in the industry. BBY outperforms 87.70% of its industry peers.
  • BBY has a better Return On Invested Capital (18.65%) than 86.07% of its industry peers.
  • BBY had an Average Return On Invested Capital over the past 3 years of 18.51%. This is above the industry average of 13.64%.
  • The last Return On Invested Capital (18.65%) for BBY is above the 3 year average (18.51%), which is a sign of increasing profitability.
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 Profit Margin of 2.56%. This is in the better half of the industry: BBY outperforms 64.75% of its industry peers.
  • BBY's Profit Margin has declined in the last couple of years.
  • BBY's Operating Margin of 4.25% is fine compared to the rest of the industry. BBY outperforms 65.57% of its industry peers.
  • In the last couple of years the Operating Margin of BBY has declined.
  • BBY has a Gross Margin of 22.48%. This is in the lower half of the industry: BBY underperforms 74.59% of its industry peers.
  • BBY's Gross Margin has been stable in the last couple of years.
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

  • BBY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • BBY has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, BBY has less shares outstanding
  • Compared to 1 year ago, BBY has a worse debt to assets ratio.
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

  • An Altman-Z score of 4.24 indicates that BBY is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 4.24, BBY belongs to the best of the industry, outperforming 83.61% of the companies in the same industry.
  • 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.
  • BBY's Debt to FCF ratio of 0.93 is fine compared to the rest of the industry. BBY outperforms 79.51% 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.
  • With a Debt to Equity ratio value of 0.39, BBY perfoms like the industry average, outperforming 54.92% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.93
Altman-Z 4.24
ROIC/WACC2.22
WACC8.41%
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

  • 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.
  • With a Current ratio value of 1.11, BBY is not doing good in the industry: 65.57% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.43 indicates that BBY may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.43, BBY is doing worse than 63.11% of the companies in the same industry.
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%.
  • BBY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.05% yearly.
  • 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

  • The Earnings Per Share is expected to grow by 10.97% 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 1.98% on average per year.
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

  • 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.
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

  • Based on the Price/Earnings ratio of 10.04, the valuation of BBY can be described as reasonable.
  • Based on the Price/Earnings ratio, BBY is valued cheaper than 87.70% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (27.38), we can say BBY is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.84, the valuation of BBY can be described as very reasonable.
  • BBY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBY is cheaper than 86.89% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 38.20. BBY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.04
Fwd PE 9.84
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

  • BBY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBY is cheaper than 88.52% of the companies in the same industry.
  • BBY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BBY is cheaper than 78.69% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.75
EV/EBITDA 4.88
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 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)4.96
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 their dividend for at least 10 years, which is a reliable track record.
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

  • 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 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 (4/16/2026, 3:58:56 PM)

64.685

+1.3 (+2.04%)

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 Cap13.53B
Revenue(TTM)41.69B
Net Income(TTM)1.07B
Analysts68
Price Target74.52 (15.2%)
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 10.04
Fwd PE 9.84
P/S 0.32
P/FCF 10.75
P/OCF 6.89
P/B 4.56
P/tB 6.34
EV/EBITDA 4.88
EPS(TTM)6.44
EY9.96%
EPS(NY)6.57
Fwd EY10.16%
FCF(TTM)6.02
FCFY9.3%
OCF(TTM)9.38
OCFY14.51%
SpS199.37
BVpS14.17
TBVpS10.21
PEG (NY)4.96
PEG (5Y)N/A
Graham Number45.3196 (-29.94%)
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 4.24
F-Score7
WACC8.41%
ROIC/WACC2.22
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 10.04 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 6 / 10.