(BBY) Best Buy Co. - NYSE
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 15.751m USD | Total Return: 19.1% in 12m
Avg Turnover: 357M
EPS Trend: -71.5%
Qual. Beats: 0
Rev. Trend: -87.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader, Confidence
Best Buy Co., Inc. is a large-cap specialty retailer (NYSE: BBY) operating in the Consumer Discretionary sector, specifically the Computer & Electronics Retail sub-industry, with a presence in the United States, Canada, and select international markets. The company sells a wide range of technology and consumer products, including computing devices, mobile phones, networking equipment, tablets, smartwatches, consumer electronics, home theater products, appliances, and gaming/entertainment items. Beyond merchandise, Best Buy generates revenue from service offerings such as delivery, installation, repair, technical support, warranty programs, and its membership and marketplace platforms, operating under multiple brands including Best Buy, Geek Squad, Insignia, Lively, and Jitterbug. Headquartered in Richfield, Minnesota, and incorporated in 1966 (originally as Sound of Music, Inc.), the company runs an omnichannel model combining physical stores with branded websites such as bestbuy.com and bestbuy.ca, and it went public in 1985.
- Discretionary consumer spending weakens amid macroeconomic headwinds
- Margin pressure intensifies from Amazon and Walmart competition
- AI PC refresh cycle and new gaming hardware boost demand
| Net Income: 1.14b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 1.89 > 1.0 |
| NWC/Revenue: 2.25% < 20% (prev 0.42%; Δ 1.84% < -1%) |
| CFO/TA 0.15 > 3% & CFO 2.30b > Net Income 1.14b |
| Net Debt (5.33b) to EBITDA (2.43b): 2.20 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (211.3m) vs 12m ago -0.80% < -2% |
| Gross Margin: 22.50% > 18% (prev 22.61%; Δ -0.10% > 0.5%) |
| Asset Turnover: 288.5% > 50% (prev 293.4%; Δ -4.86% > 0%) |
| Interest Coverage Ratio: 22.33 > 6 (EBIT TTM 1.61b / Interest Expense TTM 72.0m) |
| A: 0.06 (Total Current Assets 8.74b - Total Current Liabilities 7.80b) / Total Assets 14.9b |
| B: 0.18 (Retained Earnings 2.68b / Total Assets 14.9b) |
| C: 0.11 (EBIT TTM 1.61b / Avg Total Assets 14.5b) |
| D: 0.26 (Book Value of Equity 3.08b / Total Liabilities 11.8b) |
| Altman-Z'' = 2.02 = BBB |
| DSRI: 1.21 (Receivables 906.0m/744.0m, Revenue 41.9b/41.4b) |
| GMI: 1.00 (GM 22.61% / 22.50%) |
| AQI: 0.75 (AQ_t 0.09 / AQ_t-1 0.12) |
| SGI: 1.01 (Revenue 41.9b / 41.4b) |
| TATA: -0.08 (NI 1.14b - CFO 2.30b) / TA 14.9b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of June 25, 2026, the stock is trading at USD 77.63 with a total of 2,360,736 shares traded. Over the past week, the price has changed by +4.08%, over one month by +24.43%, over three months by +27.47% and over the past year by +19.06%.
Current recommended Stop Loss: 70.60 (which is 9.1% or 2.5 ATR below the current price).
Best Buy Co. has received a consensus analysts rating of 3.59. Therefore, it is recommended to hold BBY.
- StrongBuy: 7
- Buy: 4
- Hold: 17
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 78.7 | 1.3% |
P/E Trailing = 13.8389
P/E Forward = 11.4025
P/S = 0.3763
P/B = 5.1089
P/EG = 1.4251
Revenue TTM = 41.9b USD
EBIT TTM = 1.61b USD
EBITDA TTM = 2.43b USD
Long Term Debt = 1.16b USD (from longTermDebt, last quarter)
Short Term Debt = 625.0m USD (from shortTermDebt, last quarter)
Debt = 7.08b USD (from shortLongTermDebtTotal, last quarter) + Leases 2.96b
Net Debt = 5.33b USD (calculated: Debt 7.08b - CCE 1.75b)
Enterprise Value = 21.1b USD (15.8b + Debt 7.08b - CCE 1.75b)
Interest Coverage Ratio = 22.33 (Ebit TTM 1.61b / Interest Expense TTM 72.0m)
EV/FCF = 13.14x (Enterprise Value 21.1b / FCF TTM 1.60b)
FCF Yield = 7.61% (FCF TTM 1.60b / Enterprise Value 21.1b)
FCF Margin = 3.83% (FCF TTM 1.60b / Revenue TTM 41.9b)
Net Margin = 2.73% (Net Income TTM 1.14b / Revenue TTM 41.9b)
Gross Margin = 22.50% ((Revenue TTM 41.9b - Cost of Revenue TTM 32.4b) / Revenue TTM)
Gross Margin QoQ = 23.50% (prev 20.86%)
Tobins Q-Ratio = 1.42 (Enterprise Value 21.1b / Total Assets 14.9b)
Interest Expense / Debt = 1.02% (Interest Expense 72.0m / Debt 7.08b)
Taxrate = 26.73% (417.0m / 1.56b)
NOPAT = 1.18b (EBIT 1.61b * (1 - 26.73%))
Current Ratio = 1.12 (Total Current Assets 8.74b / Total Current Liabilities 7.80b)
Debt / Equity = 2.30 (Debt 7.08b / totalStockholderEquity, last quarter 3.08b)
Debt / EBITDA = 2.20 (Net Debt 5.33b / EBITDA 2.43b)
Debt / FCF = 3.32 (Net Debt 5.33b / FCF TTM 1.60b)
Total Stockholder Equity = 2.85b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.88% (Net Income 1.14b / Total Assets 14.9b)
RoE = 40.05% (Net Income TTM 1.14b / Total Stockholder Equity 2.85b)
RoCE = 40.08% (EBIT 1.61b / Capital Employed (Equity 2.85b + L.T.Debt 1.16b))
RoIC = 19.74% (NOPAT 1.18b / Invested Capital 5.97b)
WACC = 6.38% (E(15.8b)/V(22.8b) * Re(8.91%) + D(7.08b)/V(22.8b) * Rd(1.02%) * (1-Tc(0.27)))
Discount Rate = 8.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -1.14%
[DCF] Terminal Value 77.97% ; FCFF base≈1.47b ; Y1≈1.68b ; Y5≈2.47b
[DCF] Fair Price = 151.2 (EV 37.2b - Net Debt 5.33b = Equity 31.9b / Shares 210.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -71.48 | EPS CAGR: -3.96% | SUE: 0.24 | # QB: 0
Revenue Correlation: -87.20 | Revenue CAGR: -2.13% | SUE: 0.72 | # QB: 0
EPS current Quarter (2026-07-31): EPS=1.34 | Chg30d=+1.41% | Revisions=+27% | Analysts=20
EPS next Quarter (2026-10-31): EPS=1.40 | Chg30d=+0.62% | Revisions=+5% | Analysts=20
EPS current Year (2027-01-31): EPS=6.55 | Chg30d=+1.03% | Revisions=+67% | GrowthEPS=+1.9% | GrowthRev=+0.7%
EPS next Year (2028-01-31): EPS=7.07 | Chg30d=+1.08% | Revisions=+64% | GrowthEPS=+8.0% | GrowthRev=+1.5%
[Analyst] Revisions Ratio: +67%