BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBY - US0865161014 - Common Stock
74.12 USD
+0.95 (+1.3%)
74.12 USD
0 (0%)
Overall BBY gets a fundamental rating of 5 out of 10. We evaluated BBY against 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of BBY get a neutral evaluation. Nothing too spectacular is happening here. BBY has a bad growth rate and is valued cheaply. Finally BBY also has an excellent dividend rating. These ratings would make BBY suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year BBY was profitable.
BBY had a positive operating cash flow in the past year.
In the past 5 years BBY has always been profitable.
BBY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BBY (3.84%) is better than 64.46% of its industry peers.
Looking at the Return On Equity, with a value of 24.31%, BBY belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.29%, BBY belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 12.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 24.31% | ||
| ROIC | 19.29% |
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 1.54%, BBY perfoms like the industry average, outperforming 57.85% of the companies in the same industry.
In the last couple of years the Profit Margin of BBY has declined.
BBY's Operating Margin of 4.16% is fine compared to the rest of the industry. BBY outperforms 60.33% of its industry peers.
In the last couple of years the Operating Margin of BBY has declined.
BBY has a worse Gross Margin (22.50%) than 76.86% of its industry peers.
BBY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.16% | ||
| 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
BBY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BBY has less shares outstanding
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
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.
With an excellent Debt to FCF ratio value of 0.77, BBY belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that BBY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, BBY is in line with its industry, outperforming 57.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.04
WACC9.45%
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.
BBY has a Current ratio of 1.05. This is in the lower half of the industry: BBY underperforms 71.07% of its industry peers.
A Quick Ratio of 0.26 indicates that BBY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.26, BBY is doing worse than 83.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The earnings per share for BBY have decreased by -1.69% in the last year.
The Earnings Per Share has been growing slightly by 0.80% on average over the past years.
The Revenue has decreased by -0.95% in the past year.
The Revenue has been decreasing by -0.99% on average over the past years.
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
Based on estimates for the next years, BBY will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.76% on average per year.
Based on estimates for the next years, BBY will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-0.1%
EPS Next 2Y3.25%
EPS Next 3Y5.28%
EPS Next 5Y9.76%
Revenue Next Year1.35%
Revenue Next 2Y1.33%
Revenue Next 3Y1.55%
Revenue Next 5Y2.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.56 indicates a reasonable valuation of BBY.
Based on the Price/Earnings ratio, BBY is valued cheaper than 81.82% of the companies in the same industry.
BBY is valuated cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.90, the valuation of BBY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BBY is valued cheaply inside the industry as 83.47% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.51, BBY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBY indicates a somewhat cheap valuation: BBY is cheaper than 79.34% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BBY is valued cheaply inside the industry as 86.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.29 | ||
| EV/EBITDA | 6.04 |
4.3 Compensation for Growth
The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)14.41
EPS Next 2Y3.25%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.13%, BBY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.67, BBY pays a better dividend. On top of this BBY pays more dividend than 92.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, BBY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
5.2 History
On average, the dividend of BBY grows each year by 13.38%, which is quite nice.
BBY has paid a dividend for at least 10 years, which is 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
BBY pays out 124.34% 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.
DP124.34%
EPS Next 2Y3.25%
EPS Next 3Y5.28%
74.12
+0.95 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.22%
Inst Owner Change-2.08%
Ins Owners0.33%
Ins Owner Change1.15%
Market Cap15.57B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target85.62 (15.52%)
Short Float %6.47%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP124.34%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.27%
Min EPS beat(2)4.59%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)5.35%
Min EPS beat(4)4.41%
Max EPS beat(4)6.45%
EPS beat(8)7
Avg EPS beat(8)6.21%
EPS beat(12)11
Avg EPS beat(12)8.03%
EPS beat(16)13
Avg EPS beat(16)9.05%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.72%
Revenue beat(12)2
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)5.1%
PT rev (3m)6.58%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)1.07%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.9 | ||
| P/S | 0.37 | ||
| P/FCF | 10.29 | ||
| P/OCF | 7.01 | ||
| P/B | 5.87 | ||
| P/tB | 8.36 | ||
| EV/EBITDA | 6.04 |
EPS(TTM)6.41
EY8.65%
EPS(NY)6.8
Fwd EY9.18%
FCF(TTM)7.21
FCFY9.72%
OCF(TTM)10.57
OCFY14.26%
SpS199.07
BVpS12.63
TBVpS8.87
PEG (NY)N/A
PEG (5Y)14.41
Graham Number42.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 24.31% | ||
| ROCE | 26.11% | ||
| ROIC | 19.29% | ||
| ROICexc | 22.38% | ||
| ROICexgc | 25.95% | ||
| OM | 4.16% | ||
| PM (TTM) | 1.54% | ||
| GM | 22.5% | ||
| FCFM | 3.62% |
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%
ROICexgc growth 3Y-32.43%
ROICexgc 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 Turnover2.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 83.77% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.89% | ||
| Profit Quality | 234.73% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | N/A |
F-Score7
WACC9.45%
ROIC/WACC2.04
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)-1.69%
EPS 3Y-13.97%
EPS 5Y0.8%
EPS Q2Q%11.11%
EPS Next Y-0.1%
EPS Next 2Y3.25%
EPS Next 3Y5.28%
EPS Next 5Y9.76%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%2.4%
Revenue Next Year1.35%
Revenue Next 2Y1.33%
Revenue Next 3Y1.55%
Revenue Next 5Y2.13%
EBIT growth 1Y-2.08%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year53.62%
EBIT Next 3Y18.23%
EBIT Next 5Y12.62%
FCF growth 1Y10.03%
FCF growth 3Y-17.9%
FCF growth 5Y-5.24%
OCF growth 1Y-0.05%
OCF growth 3Y-13.59%
OCF growth 5Y-3.94%
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.
Can you provide the valuation status for BEST BUY CO INC?
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.
Can you provide the PE and PB ratios for BBY stock?
The Price/Earnings (PE) ratio for BEST BUY CO INC (BBY) is 11.56 and the Price/Book (PB) ratio is 5.87.
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%.