(BBY) Best Buy Co. - Overview
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 11.858m USD | Total Return: -9.5% in 12m
Industry Rotation: -3.9
Avg Turnover: 190M
EPS Trend: 0.7%
Qual. Beats: 2
Rev. Trend: -3.7%
Qual. Beats: 0
Warnings
Overextended 3d Below Avwap Earnings
Tailwinds
No distinct edge detected
Best Buy Co., Inc. is a multinational retailer specializing in consumer electronics, computing, appliances, and mobile communications. The company utilizes an omni-channel business model, integrating physical storefronts with e-commerce platforms across the United States and Canada to distribute third-party brands and private labels like Insignia.
Beyond hardware sales, the company generates revenue through a comprehensive service ecosystem including the Geek Squad for technical support, delivery, and installation. This service-oriented approach is a common strategy in the electronics retail sector to offset lower margins on hardware and drive customer retention through membership programs.
The company also operates specialized divisions such as Best Buy Health and Best Buy Business to address professional and medical technology needs. For a deeper look into these segments, you can explore the detailed metrics on ValueRay.
Headquartered in Richfield, Minnesota, the firm has evolved from its 1966 origins as Sound of Music, Inc. into a diversified provider of smart home products, entertainment software, and digital imaging solutions.
- Paid membership growth drives recurring revenue and higher customer lifetime value
- Computing product refresh cycles accelerate revenue growth through 2025
- Services margin expansion offsets hardware price competition and promotional pressure
- High interest rates dampen consumer demand for large appliance and home theater categories
- Retail media network scaling improves enterprise operating margins via high-margin ad revenue
| Net Income: 1.07b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -0.84 > 1.0 |
| NWC/Revenue: 1.98% < 20% (prev 0.50%; Δ 1.48% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.96b > Net Income 1.07b |
| Net Debt (2.40b) to EBITDA (2.09b): 1.15 < 3 |
| Current Ratio: 1.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (212.1m) vs 12m ago -1.53% < -2% |
| Gross Margin: 22.47% > 18% (prev 0.23%; Δ 2.22k% > 0.5%) |
| Asset Turnover: 283.1% > 50% (prev 280.9%; Δ 2.18% > 0%) |
| Interest Coverage Ratio: 16.93 > 6 (EBITDA TTM 2.09b / Interest Expense TTM 73.0m) |
| A: 0.06 (Total Current Assets 8.50b - Total Current Liabilities 7.68b) / Total Assets 14.67b |
| B: 0.18 (Retained Earnings 2.61b / Total Assets 14.67b) |
| C: 0.08 (EBIT TTM 1.24b / Avg Total Assets 14.73b) |
| D: 0.25 (Book Value of Equity 2.95b / Total Liabilities 11.71b) |
| Altman-Z'' Score: 1.78 = BBB |
| DSRI: 1.00 (Receivables 1.04b/1.04b, Revenue 41.69b/41.53b) |
| GMI: 1.01 (GM 22.47% / 22.60%) |
| AQI: 0.82 (AQ_t 0.09 / AQ_t-1 0.11) |
| SGI: 1.00 (Revenue 41.69b / 41.53b) |
| TATA: -0.06 (NI 1.07b - CFO 1.96b) / TA 14.67b) |
| Beneish M-Score: -3.19 (Cap -4..+1) = AA |
Over the past week, the price has changed by +9.83%, over one month by -8.90%, over three months by -3.99% and over the past year by -9.46%.
- StrongBuy: 7
- Buy: 4
- Hold: 17
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 71.6 | 17.3% |
P/E Forward = 9.1324
P/S = 0.2844
P/B = 4.2224
P/EG = 1.1414
Revenue TTM = 41.69b USD
EBIT TTM = 1.24b USD
EBITDA TTM = 2.09b USD
Long Term Debt = 1.17b USD (from longTermDebt, last quarter)
Short Term Debt = 634.0m USD (from shortTermDebt, last quarter)
Debt = 4.13b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.40b USD (from netDebt column, last quarter)
Enterprise Value = 14.25b USD (11.86b + Debt 4.13b - CCE 1.74b)
Interest Coverage Ratio = 16.93 (Ebit TTM 1.24b / Interest Expense TTM 73.0m)
EV/FCF = 11.33x (Enterprise Value 14.25b / FCF TTM 1.26b)
FCF Yield = 8.83% (FCF TTM 1.26b / Enterprise Value 14.25b)
FCF Margin = 3.02% (FCF TTM 1.26b / Revenue TTM 41.69b)
Net Margin = 2.56% (Net Income TTM 1.07b / Revenue TTM 41.69b)
Gross Margin = 22.47% ((Revenue TTM 41.69b - Cost of Revenue TTM 32.32b) / Revenue TTM)
Gross Margin QoQ = 20.86% (prev 23.24%)
Tobins Q-Ratio = 0.97 (Enterprise Value 14.25b / Total Assets 14.67b)
Interest Expense / Debt = 0.31% (Interest Expense 13.0m / Debt 4.13b)
Taxrate = 25.28% (183.0m / 724.0m)
NOPAT = 923.6m (EBIT 1.24b * (1 - 25.28%))
Current Ratio = 1.11 (Total Current Assets 8.50b / Total Current Liabilities 7.68b)
Debt / Equity = 1.39 (Debt 4.13b / totalStockholderEquity, last quarter 2.96b)
Debt / EBITDA = 1.15 (Net Debt 2.40b / EBITDA 2.09b)
Debt / FCF = 1.90 (Net Debt 2.40b / FCF TTM 1.26b)
Total Stockholder Equity = 2.77b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.26% (Net Income 1.07b / Total Assets 14.67b)
RoE = 38.54% (Net Income TTM 1.07b / Total Stockholder Equity 2.77b)
RoCE = 31.38% (EBIT 1.24b / Capital Employed (Equity 2.77b + L.T.Debt 1.17b))
RoIC = 23.44% (NOPAT 923.6m / Invested Capital 3.94b)
WACC = 7.28% (E(11.86b)/V(15.99b) * Re(9.73%) + D(4.13b)/V(15.99b) * Rd(0.31%) * (1-Tc(0.25)))
Discount Rate = 9.73% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -1.27%
[DCF] Terminal Value 81.39% ; FCFF base≈1.31b ; Y1≈1.33b ; Y5≈1.45b
[DCF] Fair Price = 131.9 (EV 30.19b - Net Debt 2.40b = Equity 27.79b / Shares 210.7m; r=7.28% [WACC]; 5y FCF grow 1.04% → 3.0% )
EPS Correlation: 0.69 | EPS CAGR: 14.52% | SUE: 1.70 | # QB: 2
Revenue Correlation: -3.65 | Revenue CAGR: 7.19% | SUE: -0.54 | # QB: 0
EPS current Quarter (2026-07-31): EPS=1.32 | Chg30d=-0.34% | Revisions=-33% | Analysts=20
EPS current Year (2027-01-31): EPS=6.49 | Chg30d=-0.04% | Revisions=-33% | GrowthEPS=+0.9% | GrowthRev=+0.2%
EPS next Year (2028-01-31): EPS=7.00 | Chg30d=-0.54% | Revisions=-33% | GrowthEPS=+7.9% | GrowthRev=+1.4%
[Analyst] Revisions Ratio: -33%