BEST BUY CO INC (BBY) Fundamental Analysis & Valuation
NYSE:BBY • US0865161014
Current stock price
65.53 USD
+0.86 (+1.33%)
Last:
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.
- In the past year BBY had a positive cash flow from operations.
- BBY had positive earnings in each of the past 5 years.
- BBY had a positive operating cash flow in each of the past 5 years.
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.
- Looking at the Return On Equity, with a value of 36.07%, BBY belongs to the top of the industry, outperforming 87.70% of the companies in the same industry.
- The Return On Invested Capital of BBY (18.65%) is better than 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 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 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)18.51%
ROIC(5y)21.79%
1.3 Margins
- BBY has a better Profit Margin (2.56%) than 64.75% of its industry peers.
- In the last couple of years the Profit Margin of BBY has declined.
- With a decent Operating Margin value of 4.25%, BBY is doing good in the industry, outperforming 65.57% of the companies in the same industry.
- 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 Rank | Sector 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%
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.
- The number of shares outstanding for BBY has been reduced compared to 1 year ago.
- Compared to 5 years ago, BBY has less shares outstanding
- The debt/assets ratio for BBY is higher compared to a year ago.
2.2 Solvency
- BBY has an Altman-Z score of 4.25. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
- BBY has a better Altman-Z score (4.25) than 83.61% 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.
- With a decent Debt to FCF ratio value of 0.93, BBY is doing good in the industry, outperforming 79.51% of the companies in the same industry.
- A Debt/Equity ratio of 0.39 indicates that BBY is not too dependend on debt financing.
- BBY has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 4.25 |
ROIC/WACC2.21
WACC8.44%
2.3 Liquidity
- A Current Ratio of 1.11 indicates that BBY should not have too much problems paying its short term obligations.
- BBY's Current ratio of 1.11 is on the low side compared to the rest of the industry. BBY is outperformed by 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.43 |
3. BBY Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 0.94% over the past year.
- The Earnings Per Share has been decreasing by -4.05% on average over the past years.
- Looking at the last year, BBY shows a small growth in Revenue. The Revenue has grown by 0.39% in the last 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
- 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
- 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. BBY Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.18, the valuation of BBY can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 86.89% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BBY to the average of the S&P500 Index (27.53), we can say BBY is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.97, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 37.95, BBY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 9.97 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.89 | ||
| 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.
- The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)5.02
PEG (5Y)N/A
EPS Next 2Y4.82%
EPS Next 3Y6.29%
5. BBY Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 5.95%, BBY is a good candidate for dividend investing.
- BBY's Dividend Yield is rather good when compared to the industry average which is at 3.39. BBY pays more dividend than 94.26% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BBY pays a better dividend.
| Industry Rank | Sector 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
5.3 Sustainability
- BBY pays out 74.93% of its income as dividend. 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 Fundamentals: All Metrics, Ratios and Statistics
NYSE:BBY (4/17/2026, 10:07:08 AM)
65.53
+0.86 (+1.33%)
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 Owners100.2%
Inst Owner Change0.08%
Ins Owners0.39%
Ins Owner Change4.23%
Market Cap13.70B
Revenue(TTM)41.69B
Net Income(TTM)1.07B
Analysts68
Price Target74.52 (13.72%)
Short Float %9.49%
Short Ratio3.76
Dividend
| Industry Rank | Sector 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 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)-7.97%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 9.97 | ||
| P/S | 0.33 | ||
| P/FCF | 10.89 | ||
| P/OCF | 6.98 | ||
| P/B | 4.62 | ||
| P/tB | 6.42 | ||
| EV/EBITDA | 4.98 |
EPS(TTM)6.44
EY9.83%
EPS(NY)6.57
Fwd EY10.03%
FCF(TTM)6.02
FCFY9.18%
OCF(TTM)9.38
OCFY14.32%
SpS199.37
BVpS14.17
TBVpS10.21
PEG (NY)5.02
PEG (5Y)N/A
Graham Number45.3196 (-30.84%)
Profitability
| Industry Rank | Sector 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 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 | 40.25 | ||
| Cash Conversion | 75.4% | ||
| Profit Quality | 117.68% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 4.25 |
F-Score7
WACC8.44%
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 10.18 and the Price/Book (PB) ratio is 4.62.
How financially healthy is BEST BUY CO INC?
The financial health rating of BEST BUY CO INC (BBY) is 6 / 10.