BEST BUY CO INC (BBY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBY - US0865161014 - Common Stock
66.68 USD
-0.8 (-1.19%)
66.6793 USD
0 (0%)
BBY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. BBY has only an average score on both its financial health and profitability. BBY is valued quite cheap, but it does not seem to be growing. 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.
- In the past year BBY had a positive cash flow from operations.
- BBY had positive earnings in each of the past 5 years.
- In the past 5 years BBY always reported a positive cash flow from operatings.
1.2 Ratios
- BBY's Return On Assets of 3.84% is fine compared to the rest of the industry. BBY outperforms 63.11% of its industry peers.
- BBY's Return On Equity of 24.31% is amongst the best of the industry. BBY outperforms 82.79% of its industry peers.
- The Return On Invested Capital of BBY (19.29%) is better than 87.70% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BBY is significantly above the industry average of 12.24%.
| 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
- BBY's Profit Margin of 1.54% is in line compared to the rest of the industry. BBY outperforms 56.56% of its industry peers.
- 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 60.66% of its industry peers.
- BBY's Operating Margin has declined in the last couple of years.
- BBY has a Gross Margin of 22.50%. This is in the lower half of the industry: BBY underperforms 77.87% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BBY is creating value.
- Compared to 1 year ago, BBY has less shares outstanding
- BBY has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BBY has a worse debt to assets ratio.
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.
- Looking at the Debt to FCF ratio, with a value of 0.77, BBY belongs to the top of the industry, outperforming 81.15% of the companies in the same industry.
- A Debt/Equity ratio of 0.44 indicates that BBY is not too dependend on debt financing.
- BBY's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. BBY outperforms 56.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.03
WACC9.51%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that BBY should not have too much problems paying its short term obligations.
- BBY's Current ratio of 1.05 is on the low side compared to the rest of the industry. BBY is outperformed by 72.13% of its industry peers.
- A Quick Ratio of 0.26 indicates that BBY may have some problems paying its short term obligations.
- With a Quick ratio value of 0.26, BBY is not doing good in the industry: 82.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- BBY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.69%.
- 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 -0.95%.
- BBY shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.99% yearly.
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
- The Earnings Per Share is expected to grow by 9.95% 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 2.25% on average per year.
EPS Next Y0.1%
EPS Next 2Y3.28%
EPS Next 3Y5.26%
EPS Next 5Y9.95%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.56%
Revenue Next 5Y2.25%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.40 indicates a reasonable valuation of BBY.
- Based on the Price/Earnings ratio, BBY is valued cheaper than 84.43% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.33. BBY is valued rather cheaply when compared to this.
- BBY is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
- Based on the Price/Forward Earnings ratio, BBY is valued cheaper than 86.07% of the companies in the same industry.
- BBY is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BBY is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, BBY is valued cheaper than 86.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.25 | ||
| EV/EBITDA | 5.58 |
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)100.19
PEG (5Y)12.96
EPS Next 2Y3.28%
EPS Next 3Y5.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.29%, BBY is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.13, BBY pays a better dividend. On top of this BBY pays more dividend than 91.80% 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 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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 2Y3.28%
EPS Next 3Y5.26%
66.68
-0.8 (-1.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-25 2025-11-25/bmo
Earnings (Next)03-02 2026-03-02/amc
Inst Owners90.4%
Inst Owner Change0.2%
Ins Owners0.33%
Ins Owner Change0.21%
Market Cap14.01B
Revenue(TTM)41.83B
Net Income(TTM)645.00M
Analysts68.39
Price Target85.28 (27.89%)
Short Float %8.2%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP124.34%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
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)-0.4%
PT rev (3m)6.48%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)0.21%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.33 | ||
| P/FCF | 9.25 | ||
| P/OCF | 6.31 | ||
| P/B | 5.28 | ||
| P/tB | 7.52 | ||
| EV/EBITDA | 5.58 |
EPS(TTM)6.41
EY9.61%
EPS(NY)6.81
Fwd EY10.21%
FCF(TTM)7.21
FCFY10.81%
OCF(TTM)10.57
OCFY15.85%
SpS199.07
BVpS12.63
TBVpS8.87
PEG (NY)100.19
PEG (5Y)12.96
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
WACC9.51%
ROIC/WACC2.03
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 Y0.1%
EPS Next 2Y3.28%
EPS Next 3Y5.26%
EPS Next 5Y9.95%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-7.08%
Revenue growth 5Y-0.99%
Sales Q2Q%2.4%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.56%
Revenue Next 5Y2.25%
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 5Y13.3%
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.
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.
How profitable is BEST BUY CO INC (BBY) stock?
BEST BUY CO INC (BBY) has a profitability rating of 6 / 10.
What is the expected EPS growth for BEST BUY CO INC (BBY) stock?
The Earnings per Share (EPS) of BEST BUY CO INC (BBY) is expected to grow by 0.1% in the next year.
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%.