BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - NYSE:BBY - US0865161014 - Common Stock
80.745 USD
+1.04 (+1.3%)
Taking everything into account, BBY scores 5 out of 10 in our fundamental rating. BBY was compared to 119 industry peers in the Specialty Retail industry. BBY has an average financial health and profitability rating. BBY has a valuation in line with the averages, 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 dividend investing.
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.
Each year in the past 5 years BBY had a positive operating cash flow.
1.2 Ratios
BBY has a better Return On Assets (5.10%) than 69.75% of its industry peers.
BBY has a Return On Equity of 28.65%. This is amongst the best in the industry. BBY outperforms 84.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.01%, BBY belongs to the top of the industry, outperforming 87.39% of the companies in the same industry.
BBY had an Average Return On Invested Capital over the past 3 years of 19.35%. This is significantly above the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 28.65% | ||
| ROIC | 19.01% |
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
With a Profit Margin value of 1.87%, BBY perfoms like the industry average, outperforming 57.98% of the companies in the same industry.
BBY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 4.14%, BBY is doing good in the industry, outperforming 60.50% of the companies in the same industry.
BBY's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 22.54%, BBY is not doing good in the industry: 77.31% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.14% | ||
| PM (TTM) | 1.87% | ||
| GM | 22.54% |
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
Compared to 5 years ago, BBY has less shares outstanding
BBY has a worse debt/assets ratio than last year.
2.2 Solvency
BBY has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
BBY's Debt to FCF ratio of 0.87 is amongst the best of the industry. BBY outperforms 82.35% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that BBY is not too dependend on debt financing.
BBY has a Debt to Equity ratio (0.43) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | N/A |
ROIC/WACC2.05
WACC9.28%
2.3 Liquidity
BBY has a Current Ratio of 1.04. This is a normal value and indicates that BBY is financially healthy and should not expect problems in meeting its short term obligations.
BBY has a Current ratio of 1.04. This is in the lower half of the industry: BBY underperforms 72.27% of its industry peers.
BBY has a Quick Ratio of 1.04. 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 has a worse Quick ratio (0.36) than 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
BBY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.27%.
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 -2.21%.
The Revenue has been decreasing by -0.99% on average over the past years.
EPS 1Y (TTM)-4.27%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.48%
Revenue 1Y (TTM)-2.21%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%1.61%
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 9.82% on average per year.
BBY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.16% yearly.
EPS Next Y-1.19%
EPS Next 2Y2.77%
EPS Next 3Y5.17%
EPS Next 5Y9.82%
Revenue Next Year1.22%
Revenue Next 2Y1.3%
Revenue Next 3Y1.7%
Revenue Next 5Y2.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.88 indicates a correct valuation of BBY.
Compared to the rest of the industry, the Price/Earnings ratio of BBY indicates a somewhat cheap valuation: BBY is cheaper than 78.15% of the companies listed in the same industry.
BBY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
With a Price/Forward Earnings ratio of 11.98, the valuation of BBY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBY indicates a somewhat cheap valuation: BBY is cheaper than 76.47% of the companies listed in the same industry.
BBY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
BBY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BBY is cheaper than 73.95% 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 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.55 | ||
| EV/EBITDA | 6.39 |
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)16.04
EPS Next 2Y2.77%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.84%, BBY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.51, BBY pays a better dividend. On top of this BBY pays more dividend than 92.44% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
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
103.47% 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.
DP103.47%
EPS Next 2Y2.77%
EPS Next 3Y5.17%
NYSE:BBY (10/20/2025, 3:26:03 PM)
80.745
+1.04 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.62%
Inst Owner Change0.43%
Ins Owners0.32%
Ins Owner Change1.15%
Market Cap16.96B
Analysts68.13
Price Target80.09 (-0.81%)
Short Float %8.3%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP103.47%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)4.41%
Max EPS beat(2)4.59%
EPS beat(4)3
Avg EPS beat(4)2.96%
Min EPS beat(4)-3.62%
Max EPS beat(4)6.45%
EPS beat(8)7
Avg EPS beat(8)6.44%
EPS beat(12)11
Avg EPS beat(12)10.23%
EPS beat(16)13
Avg EPS beat(16)9.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)3
Avg Revenue beat(12)-0.75%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)-0.43%
PT rev (3m)0.98%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)1.09%
EPS NY rev (1m)1.18%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 11.98 | ||
| P/S | 0.41 | ||
| P/FCF | 12.55 | ||
| P/OCF | 8.22 | ||
| P/B | 6.25 | ||
| P/tB | 9.38 | ||
| EV/EBITDA | 6.39 |
EPS(TTM)6.27
EY7.77%
EPS(NY)6.74
Fwd EY8.35%
FCF(TTM)6.44
FCFY7.97%
OCF(TTM)9.82
OCFY12.17%
SpS197.99
BVpS12.93
TBVpS8.61
PEG (NY)N/A
PEG (5Y)16.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 28.65% | ||
| ROCE | 25.73% | ||
| ROIC | 19.01% | ||
| ROICexc | 24.29% | ||
| ROICexgc | 29.38% | ||
| OM | 4.14% | ||
| PM (TTM) | 1.87% | ||
| GM | 22.54% | ||
| FCFM | 3.25% |
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%
ROICexcg growth 3Y-32.43%
ROICexcg 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 Turnover2.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 83.67% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.16% | ||
| Profit Quality | 173.78% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | N/A |
F-Score7
WACC9.28%
ROIC/WACC2.05
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)-4.27%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%-4.48%
EPS Next Y-1.19%
EPS Next 2Y2.77%
EPS Next 3Y5.17%
EPS Next 5Y9.82%
Revenue 1Y (TTM)-2.21%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%1.61%
Revenue Next Year1.22%
Revenue Next 2Y1.3%
Revenue Next 3Y1.7%
Revenue Next 5Y2.16%
EBIT growth 1Y-3.53%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year52.35%
EBIT Next 3Y18.09%
EBIT Next 5Y11.74%
FCF growth 1Y-26.12%
FCF growth 3Y-17.9%
FCF growth 5Y-5.24%
OCF growth 1Y-23.95%
OCF growth 3Y-13.59%
OCF growth 5Y-3.94%