BEST BUY CO INC (BBY) Fundamental Analysis & Valuation

NYSE:BBY • US0865161014

Current stock price

59.27 USD
-1.18 (-1.95%)
At close:
59.4999 USD
+0.23 (+0.39%)
After Hours:

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

  • In the past year BBY was profitable.
  • BBY had a positive operating cash flow in the past year.
  • Each year in the past 5 years BBY has been profitable.
  • Each year in the past 5 years BBY had a positive operating cash flow.
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

  • With an excellent Return On Assets value of 7.29%, BBY belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
  • The Return On Equity of BBY (36.07%) is better than 87.80% of its industry peers.
  • With an excellent Return On Invested Capital value of 18.65%, BBY belongs to the best of the industry, outperforming 86.18% of the companies in the same industry.
  • BBY had an Average Return On Invested Capital over the past 3 years of 18.51%. This is significantly above the industry average of 13.24%.
  • 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 63.41% 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 64.23% of the companies in the same industry.
  • In the last couple of years the Operating Margin of BBY has declined.
  • Looking at the Gross Margin, with a value of 22.48%, BBY is doing worse than 75.61% of the companies in the same industry.
  • 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.
  • 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.
  • The debt/assets ratio for BBY is higher compared to a year ago.
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 4.19 indicates that BBY is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 4.19, BBY belongs to the best of the industry, outperforming 83.74% 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.
  • The Debt to FCF ratio of BBY (0.93) is better than 78.05% of its industry peers.
  • A Debt/Equity ratio of 0.39 indicates that BBY is not too dependend on debt financing.
  • The Debt to Equity ratio of BBY (0.39) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.93
Altman-Z 4.19
ROIC/WACC2.22
WACC8.42%
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.
  • BBY has a Current ratio of 1.11. This is in the lower half of the industry: BBY underperforms 67.48% 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 65.85% of its industry peers.
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%.
  • The Earnings Per Share has been decreasing by -4.05% on average over the past years.
  • 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 8.19% on average per year.
  • The Revenue is expected to grow by 1.25% on average over the next years.
EPS Next Y2.03%
EPS Next 2Y4.82%
EPS Next 3Y6.36%
EPS Next 5Y8.19%
Revenue Next Year-0.07%
Revenue Next 2Y0.65%
Revenue Next 3Y1.06%
Revenue Next 5Y1.25%

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.
  • 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

  • With a Price/Earnings ratio of 9.20, the valuation of BBY can be described as very reasonable.
  • Based on the Price/Earnings ratio, BBY is valued cheaper than 90.24% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.15, BBY is valued rather cheaply.
  • BBY is valuated reasonably with a Price/Forward Earnings ratio of 9.02.
  • Based on the Price/Forward Earnings ratio, BBY is valued cheaply inside the industry as 88.62% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of BBY to the average of the S&P500 Index (22.12), we can say BBY is valued rather cheaply.
Industry RankSector Rank
PE 9.2
Fwd PE 9.02
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

  • Based on the Enterprise Value to EBITDA ratio, BBY is valued cheaper than 88.62% of the companies in the same industry.
  • 80.49% of the companies in the same industry are more expensive than BBY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.85
EV/EBITDA 4.55
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)4.54
PEG (5Y)N/A
EPS Next 2Y4.82%
EPS Next 3Y6.36%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. BBY Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.24%, BBY is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.79, BBY pays a better dividend. On top of this BBY pays more dividend than 93.50% 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 6.24%

5.2 History

  • The dividend of BBY is nicely growing with an annual growth rate of 11.48%!
  • 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)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

  • 74.93% of the earnings are spent on dividend by BBY. 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 3Y6.36%
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 (4/27/2026, 8:04:00 PM)

After market: 59.4999 +0.23 (+0.39%)

59.27

-1.18 (-1.95%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-27
Inst Owners100.2%
Inst Owner Change-0.05%
Ins Owners0.39%
Ins Owner Change4.23%
Market Cap12.39B
Revenue(TTM)41.69B
Net Income(TTM)1.07B
Analysts68
Price Target74.52 (25.73%)
Short Float %9.63%
Short Ratio4
Dividend
Industry RankSector Rank
Dividend Yield 6.24%
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)-11.66%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-2.36%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.57%
Valuation
Industry RankSector Rank
PE 9.2
Fwd PE 9.02
P/S 0.3
P/FCF 9.85
P/OCF 6.32
P/B 4.18
P/tB 5.81
EV/EBITDA 4.55
EPS(TTM)6.44
EY10.87%
EPS(NY)6.57
Fwd EY11.09%
FCF(TTM)6.02
FCFY10.15%
OCF(TTM)9.38
OCFY15.83%
SpS199.37
BVpS14.17
TBVpS10.21
PEG (NY)4.54
PEG (5Y)N/A
Graham Number45.3196 (-23.54%)
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 4.19
F-Score7
WACC8.42%
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 3Y6.36%
EPS Next 5Y8.19%
Revenue 1Y (TTM)0.39%
Revenue growth 3Y-3.43%
Revenue growth 5Y-2.48%
Sales Q2Q%-0.96%
Revenue Next Year-0.07%
Revenue Next 2Y0.65%
Revenue Next 3Y1.06%
Revenue Next 5Y1.25%
EBIT growth 1Y2.13%
EBIT growth 3Y-3.03%
EBIT growth 5Y-7.3%
EBIT Next Year51.67%
EBIT Next 3Y17.79%
EBIT Next 5Y11.34%
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 9.2 and the Price/Book (PB) ratio is 4.18.


How financially healthy is BEST BUY CO INC?

The financial health rating of BEST BUY CO INC (BBY) is 6 / 10.