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Best Buy

NYSE:BBY
Snowflake Description

Outstanding track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BBY
NYSE
$18B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The last earnings update was 49 days ago. More info.


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BBY Share Price and Events
7 Day Returns
-6.1%
NYSE:BBY
-5.5%
US Specialty Retail
-3.9%
US Market
1 Year Returns
-13.9%
NYSE:BBY
11.1%
US Specialty Retail
1.4%
US Market
BBY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Best Buy (BBY) -6.1% -7.2% 12.8% -13.9% 115.2% 158.8%
US Specialty Retail -5.5% -6.2% 3.9% 11.1% 29.2% 40.8%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • BBY underperformed the Specialty Retail industry which returned 11.1% over the past year.
  • BBY underperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
BBY
Industry
5yr Volatility vs Market
Related Companies

BBY Value

 Is Best Buy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Best Buy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Best Buy.

NYSE:BBY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BBY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.898 (1 + (1- 21%) (7.64%))
0.968
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.968 * 5.96%)
8.5%

Discounted Cash Flow Calculation for NYSE:BBY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Best Buy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:BBY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.5%)
2019 1,574.40 Analyst x5 1,451.06
2020 1,580.56 Analyst x9 1,342.60
2021 1,496.00 Analyst x7 1,171.22
2022 1,494.50 Analyst x2 1,078.38
2023 1,505.69 Est @ 0.75% 1,001.34
2024 1,525.91 Est @ 1.34% 935.28
2025 1,552.76 Est @ 1.76% 877.18
2026 1,584.59 Est @ 2.05% 825.03
2027 1,620.32 Est @ 2.25% 777.54
2028 1,659.16 Est @ 2.4% 733.80
Present value of next 10 years cash flows $10,193.43
NYSE:BBY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,659.16 × (1 + 2.73%) ÷ (8.5% – 2.73%)
$29,538.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $29,538.29 ÷ (1 + 8.5%)10
$13,063.99
NYSE:BBY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,193.43 + $13,063.99
$23,257.41
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $23,257.41 / 267.92
$86.81
NYSE:BBY Discount to Share Price
Calculation Result
Value per share (USD) From above. $86.81
Current discount Discount to share price of $67.86
= -1 x ($67.86 - $86.81) / $86.81
21.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Best Buy is available for.
Intrinsic value
22%
Share price is $67.86 vs Future cash flow value of $86.81
Current Discount Checks
For Best Buy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Best Buy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Best Buy's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Best Buy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Best Buy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BBY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-02) in USD $5.30
NYSE:BBY Share Price ** NYSE (2019-05-15) in USD $67.86
United States of America Specialty Retail Industry PE Ratio Median Figure of 65 Publicly-Listed Specialty Retail Companies 15.9x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Best Buy.

NYSE:BBY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BBY Share Price ÷ EPS (both in USD)

= 67.86 ÷ 5.30

12.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Best Buy is good value based on earnings compared to the US Specialty Retail industry average.
  • Best Buy is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Best Buy's expected growth come at a high price?
Raw Data
NYSE:BBY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
0.7%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 56 Publicly-Listed Specialty Retail Companies 1.53x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:BBY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.81x ÷ 0.7%

19.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Best Buy is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Best Buy's assets?
Raw Data
NYSE:BBY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-02) in USD $12.44
NYSE:BBY Share Price * NYSE (2019-05-15) in USD $67.86
United States of America Specialty Retail Industry PB Ratio Median Figure of 99 Publicly-Listed Specialty Retail Companies 1.43x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:BBY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BBY Share Price ÷ Book Value per Share (both in USD)

= 67.86 ÷ 12.44

5.45x

* Primary Listing of Best Buy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Best Buy is overvalued based on assets compared to the US Specialty Retail industry average.
X
Value checks
We assess Best Buy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Best Buy has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BBY Future Performance

 How is Best Buy expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Best Buy expected to grow at an attractive rate?
  • Best Buy's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Best Buy's earnings growth is positive but not above the United States of America market average.
  • Best Buy's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BBY Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BBY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 0.7%
NYSE:BBY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 1.4%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BBY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BBY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-01-31 44,765 2,233 1,481 6
2021-01-31 44,164 2,358 1,511 22
2020-01-31 43,545 2,429 1,501 24
NYSE:BBY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-02 42,879 2,408 1,464
2018-11-03 43,441 2,045 1,093
2018-08-04 43,171 2,557 1,054
2018-05-05 42,732 2,102 1,019
2018-02-03 42,151 2,141 999
2017-10-28 40,270 2,353 1,242
2017-07-29 39,895 1,952 1,196
2017-04-29 39,488 2,308 1,169
2017-01-28 39,403 2,557 1,207
2016-10-29 39,544 2,266 1,077
2016-07-30 39,418 2,311 1,014
2016-04-30 39,413 1,824 996

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Best Buy's earnings are expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
  • Best Buy's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BBY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from Best Buy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BBY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-01-31 6.12 6.65 5.73 4.00
2021-01-31 5.98 6.26 5.53 13.00
2020-01-31 5.66 5.80 5.49 13.00
NYSE:BBY Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-02 5.30
2018-11-03 3.89
2018-08-04 3.67
2018-05-05 3.47
2018-02-03 3.33
2017-10-28 4.05
2017-07-29 3.85
2017-04-29 3.71
2017-01-28 3.79
2016-10-29 3.31
2016-07-30 3.05
2016-04-30 2.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Best Buy is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Best Buy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Best Buy has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BBY Past Performance

  How has Best Buy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Best Buy's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Best Buy's year on year earnings growth rate has been positive over the past 5 years.
  • Best Buy's 1-year earnings growth exceeds its 5-year average (46.2% vs 6.2%)
  • Best Buy's earnings growth has exceeded the US Specialty Retail industry average in the past year (46.2% vs 16.4%).
Earnings and Revenue History
Best Buy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Best Buy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BBY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-02 42,879.00 1,464.00 7,990.00
2018-11-03 43,441.00 1,093.00 8,123.00
2018-08-04 43,171.00 1,054.00 8,068.00
2018-05-05 42,732.00 1,019.00 8,022.00
2018-02-03 42,151.00 999.00 7,911.00
2017-10-28 40,270.00 1,242.00 7,601.00
2017-07-29 39,895.00 1,196.00 7,556.00
2017-04-29 39,488.00 1,169.00 7,488.00
2017-01-28 39,403.00 1,207.00 7,524.00
2016-10-29 39,544.00 1,077.00 7,512.00
2016-07-30 39,418.00 1,014.00 7,492.00
2016-04-30 39,413.00 996.00 7,528.00
2016-01-30 39,528.00 807.00 7,612.00
2015-10-31 40,114.00 854.00 7,610.00
2015-08-01 40,327.00 841.00 7,611.00
2015-05-02 40,258.00 814.00 7,562.00
2015-01-31 40,339.00 1,246.00 7,550.00
2014-11-01 38,801.00 1,040.00 7,321.00
2014-08-02 39,096.00 967.00 7,485.00
2014-05-03 39,903.00 1,067.00 7,781.00
2014-02-01 40,611.00 695.00 8,007.00
2013-11-02 42,294.63 -325.64 8,452.45
2013-08-03 42,348.63 -377.64 8,614.45
2013-05-04 42,421.63 -583.64 8,652.45
2013-02-02 41,729.45 -282.55 8,570.18
2012-11-03 40,536.00 985.00 7,711.00
2012-08-04 42,300.00 1,167.00 7,991.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Best Buy made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Best Buy used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • Best Buy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Best Buy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Best Buy has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BBY Health

 How is Best Buy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Best Buy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Best Buy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Best Buy's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Best Buy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Best Buy Company Filings, last reported 3 months ago.

NYSE:BBY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-02 3,306.00 1,389.00 2,163.00
2018-11-03 3,012.00 1,348.00 1,476.00
2018-08-04 3,186.00 855.00 2,505.00
2018-05-05 3,420.00 1,357.00 2,797.00
2018-02-03 3,612.00 1,360.00 3,297.00
2017-10-28 4,152.00 1,332.00 3,511.00
2017-07-29 4,347.00 1,354.00 3,653.00
2017-04-29 4,499.00 1,348.00 3,762.00
2017-01-28 4,709.00 1,365.00 4,088.00
2016-10-29 4,261.00 1,367.00 3,281.00
2016-07-30 4,319.00 1,384.00 3,590.00
2016-04-30 4,426.00 1,378.00 3,144.00
2016-01-30 4,378.00 1,734.00 3,360.00
2015-10-31 4,650.00 1,639.00 3,347.00
2015-08-01 4,622.00 1,609.00 3,495.00
2015-05-02 4,868.00 1,609.00 3,739.00
2015-01-31 5,000.00 1,613.00 3,971.00
2014-11-01 4,573.00 1,635.00 3,138.00
2014-08-02 4,530.00 1,635.00 3,080.00
2014-05-03 4,424.00 1,648.00 3,066.00
2014-02-01 3,989.00 1,657.00 2,901.00
2013-11-02 3,744.00 1,669.00 2,170.00
2013-08-03 3,605.00 1,678.00 1,910.00
2013-05-04 3,548.00 1,686.00 908.00
2013-02-02 3,715.00 2,296.00 1,826.00
2012-11-03 4,128.00 2,012.00 309.00
2012-08-04 4,111.00 2,226.00 680.00
  • Best Buy's level of debt (42%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (41.4% vs 42% today).
  • Debt is well covered by operating cash flow (173.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 82.1x coverage).
X
Financial health checks
We assess Best Buy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Best Buy has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BBY Dividends

 What is Best Buy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.95%
Current annual income from Best Buy dividends. Estimated to be 3.2% next year.
If you bought $2,000 of Best Buy shares you are expected to receive $59 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Best Buy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Best Buy's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BBY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BBY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-01-31 2.39 5.00
2021-01-31 2.24 9.00
2020-01-31 2.00 10.00
NYSE:BBY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-28 2.000 2.744
2019-02-27 2.000 2.898
2018-04-02 1.800 2.617
2018-03-01 1.800 2.544
2017-11-17 1.360 2.006
2017-08-30 1.360 2.429
2017-05-26 1.360 2.354
2017-03-01 1.360 2.798
2016-11-18 1.120 2.484
2016-08-24 1.120 2.886
2016-05-25 1.120 3.504
2016-02-25 1.120 3.478
2015-11-20 0.920 3.122
2015-08-26 0.920 2.583
2015-05-22 0.920 2.770
2015-03-03 0.920 2.451
2014-11-21 0.760 2.030
2014-06-10 0.760 2.402
2014-02-28 0.680 2.602
2013-05-22 0.680 2.087
2013-03-04 0.680 2.913
2012-12-05 0.680 4.860
2012-11-20 0.680 5.465
2012-09-06 0.680 4.089
2012-08-21 0.680 3.803
2012-06-13 0.640 3.315
2012-05-22 0.640 3.345
2012-05-01 0.640 3.237
2012-03-29 0.640 2.860
2011-12-14 0.640 2.588
2011-06-21 0.640 2.417
2011-06-15 0.600 1.932
2011-03-25 0.600 1.981
2010-12-15 0.600 1.793
2010-06-24 0.600 1.593
2010-06-16 0.560 1.509
2010-03-26 0.560 1.304
2009-12-16 0.560 1.454
2009-09-16 0.560 1.387
2009-06-17 0.560 1.551

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Best Buy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Best Buy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Best Buy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Best Buy has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BBY Management

 What is the CEO of Best Buy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hubert Joly
COMPENSATION $16,760,454
AGE 59
TENURE AS CEO 6.7 years
CEO Bio

Mr. Hubert Joly serves as the Chief Executive Officer and Director at Best Buy Co., Inc. since September 2012 and as its Chairman since June 2015. Mr. Joly has been a Director at Ralph Lauren Corp. since June 2009. He served as President at Best Buy Co., Inc. Mr. Joly has extensive management and leadership experience. He was President and Chief Executive Officer of Carlson from 2008 until 2012. Prior to his appointment in 2008, he served as President and Chief Executive Officer of Carlson Wagonlit Travel (“CWT”) from 2004 to 2008. Mr. Joly previously served as a director of Carlson, Inc. and the World Travel and Tourism Council and chair of the board of directors of the Rezidor Hotel Group and Carlson Wagonlit Travel. He held several senior executive positions with Vivendi S.A., a French multinational media and telecommunications company, from 1999 to 2004, including as its Executive Vice President, American Assets from 2002 to 2004. Prior to that time, Mr. Joly worked in the technology sector at Electronic Data Systems (now part of Hewlett-Packard Co.) from 1996 to 1999 and at McKinsey & Company, Inc. from 1983 to 1996. He serves on the U.S. Secretary of Commerce Travel and Tourism Advisory Board and the Board of Trustees of the Minneapolis Institute of Arts and the Minnesota Orchestra. Mr. Hubert is a graduate of Business Administration from HEC Paris, and a Public Administration graduate of the Institut d'Etudes Politiques de Paris.

CEO Compensation
  • Hubert's compensation has been consistent with company performance over the past year.
  • Hubert's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Best Buy management team in years:

0.8
Average Tenure
47
Average Age
  • The average tenure for the Best Buy management team is less than 2 years, this suggests a new team.
Management Team

Hubert Joly

TITLE
Chairman & CEO
COMPENSATION
$17M
AGE
59
TENURE
6.7 yrs

Corie Barry

TITLE
CFO & Chief Strategic Transformation Officer
COMPENSATION
$5M
AGE
43
TENURE
2.9 yrs

Keith Nelsen

TITLE
COMPENSATION
$4M
AGE
54
TENURE
0.1 yrs

Mike Mohan

TITLE
Chief Operating Officer of Best Buy U.S.
COMPENSATION
$6M
AGE
50
TENURE
0.7 yrs

Mathew Watson

TITLE
Senior VP of Finance
AGE
47
TENURE
4.1 yrs

Brian Tilzer

TITLE
Chief Digital & Technology Officer
AGE
47
TENURE
1 yrs

Mollie O'Brien

TITLE
Vice President of Investor Relations

Todd Hartman

TITLE
Executive VP
TENURE
0.1 yrs

Matt Furman

TITLE
Chief Communications & Public Affairs Officer
AGE
47

Allison Peterson

TITLE
Chief Customer & Marketing Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Best Buy board of directors in years:

4.3
Average Tenure
57.5
Average Age
  • The tenure for the Best Buy board of directors is about average.
Board of Directors

Hubert Joly

TITLE
Chairman & CEO
COMPENSATION
$17M
AGE
59
TENURE
3.9 yrs

Kathy Higgins Victor

TITLE
Independent Director
COMPENSATION
$295K
AGE
61
TENURE
19.5 yrs

Russ Fradin

TITLE
Lead Independent Director
COMPENSATION
$400K
AGE
62
TENURE
3.9 yrs

Tommy Millner

TITLE
Independent Director
COMPENSATION
$305K
AGE
64
TENURE
5.3 yrs

J. Doyle

TITLE
Independent Director
COMPENSATION
$280K
AGE
55
TENURE
4.6 yrs

Lisa Caputo

TITLE
Independent Director
COMPENSATION
$280K
AGE
54
TENURE
9.4 yrs

David Kenny

TITLE
Independent Director
COMPENSATION
$280K
AGE
56
TENURE
5.7 yrs

Karen McLoughlin

TITLE
Independent Director
COMPENSATION
$280K
AGE
53
TENURE
3.7 yrs

Claudia Munce

TITLE
Independent Director
COMPENSATION
$280K
AGE
59
TENURE
3.2 yrs

Richelle Parham

TITLE
Independent Director
AGE
50
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • Best Buy insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. May 19 Sell Brian Tilzer Individual 08. May 19 08. May 19 -2,739 $72.88 $-199,624
18. Apr 19 Sell R. Mohan Individual 17. Apr 19 17. Apr 19 -30,000 $73.92 $-2,217,450
18. Apr 19 Sell Hubert Joly Individual 17. Apr 19 17. Apr 19 -171,711 $73.68 $-12,651,512
18. Mar 19 Sell Mathew Watson Individual 14. Mar 19 15. Mar 19 -1,990 $68.88 $-136,484
18. Mar 19 Sell Kamy Scarlett Individual 14. Mar 19 15. Mar 19 -4,703 $68.88 $-322,539
18. Mar 19 Sell Keith Nelsen Individual 14. Mar 19 15. Mar 19 -24,374 $68.88 $-1,670,942
18. Mar 19 Sell R. Mohan Individual 14. Mar 19 15. Mar 19 -44,619 $68.88 $-3,057,824
18. Mar 19 Sell Hubert Joly Individual 14. Mar 19 15. Mar 19 -139,133 $68.88 $-9,534,812
18. Mar 19 Sell Corie Barry Individual 14. Mar 19 15. Mar 19 -27,788 $68.88 $-1,904,858
14. Mar 19 Sell Mathew Watson Individual 13. Mar 19 13. Mar 19 -380 $68.79 $-26,139
13. Mar 19 Sell Richard M. Schulze Family Foundation, Endowment Arm Company 11. Mar 19 11. Mar 19 -241,377 $68.87 $-16,623,900
13. Mar 19 Sell Richard Schulze Individual 11. Mar 19 11. Mar 19 -241,180 $68.89 $-16,615,011
05. Mar 19 Sell Richard M. Schulze Family Foundation, Endowment Arm Company 01. Mar 19 04. Mar 19 -258,623 $69.55 $-17,713,341
05. Mar 19 Sell Richard Schulze Individual 01. Mar 19 04. Mar 19 -258,820 $69.53 $-17,723,999
01. Mar 19 Sell Mathew Watson Individual 28. Feb 19 28. Feb 19 -1,000 $69.99 $-69,994
22. Oct 18 Sell Corie Barry Individual 19. Oct 18 19. Oct 18 -6,783 $72.80 $-493,823
03. Oct 18 Sell Corie Barry Individual 02. Oct 18 02. Oct 18 -2,982 $78.35 $-233,649
01. Oct 18 Sell Mathew Watson Individual 28. Sep 18 28. Sep 18 -33 $78.80 $-2,600
13. Sep 18 Sell Mathew Watson Individual 12. Sep 18 12. Sep 18 -2,131 $77.88 $-165,969
06. Sep 18 Sell Keith Nelsen Individual 04. Sep 18 04. Sep 18 -18,949 $80.37 $-1,523,015
06. Sep 18 Sell Asheesh Saksena Individual 05. Sep 18 05. Sep 18 -26,309 $80.62 $-2,106,595
31. Aug 18 Sell Patricia Walker Individual 29. Aug 18 29. Aug 18 -5,000 $77.66 $-388,309
15. Jun 18 Sell Asheesh Saksena Individual 14. Jun 18 14. Jun 18 -18,570 $73.69 $-1,368,442
13. Jun 18 Sell Mathew Watson Individual 11. Jun 18 11. Jun 18 -457 $72.54 $-33,153
05. Jun 18 Sell Kamy Scarlett Individual 04. Jun 18 04. Jun 18 -1,225 $68.85 $-84,338
29. May 18 Sell R. Mohan Individual 25. May 18 25. May 18 -2,617 $70.98 $-185,763
25. May 18 Sell Mathew Watson Individual 23. May 18 23. May 18 -276 $75.78 $-20,916
X
Management checks
We assess Best Buy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Best Buy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BBY News

Simply Wall St News

Is Best Buy Co., Inc.'s (NYSE:BBY) CEO Pay Justified?

Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. … Thus we can conclude that Hubert Joly receives more in total compensation than the median of a group of large companies in the same market as Best Buy Co., Inc..

Simply Wall St -

Do Best Buy's (NYSE:BBY) Earnings Warrant Your Attention?

Best Buy's Earnings Per Share Are Growing. … If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. … One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing.

Simply Wall St -

Have Insiders Been Selling Best Buy Co., Inc. (NYSE:BBY) Shares?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.

Simply Wall St -

A Look At The Fair Value Of Best Buy Co., Inc. (NYSE:BBY)

In this article we are going to estimate the intrinsic value of Best Buy Co., Inc. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Read This Before You Buy Best Buy Co., Inc. (NYSE:BBY) Because Of Its P/E Ratio

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Looking at earnings over the last twelve months, Best Buy has a P/E ratio of 14.11. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does Best Buy Co., Inc.'s (NYSE:BBY) Debt Level Pose A Problem?

There are a number of reasons that attract investors towards large-cap companies such as Best Buy Co., Inc. … I will provide an overview of Best Buy’s financial liquidity and leverage to give you an idea of Best Buy’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Why Best Buy Co., Inc.’s (NYSE:BBY) Return On Capital Employed Is Impressive

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Best Buy Co., Inc. (NYSE:BBY): 4 Days To Buy Before The Ex-Dividend Date

(NYSE:BBY) will be distributing its dividend of US$0.50 per share on the 10 April 2019, and will start trading ex-dividend in 4 days time on the 19 March 2019. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

Simply Wall St -

Will Best Buy Co., Inc.'s (NYSE:BBY) Earnings Grow In The Year Ahead?

(NYSE:BBY) released its earnings update. … as a 2.2% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 6.2%.

Simply Wall St -

Did Business Growth Power Best Buy's Share Price Gain of 131%?

During the five years of share price growth, Best Buy moved from a loss to profitability. … We can see that the Best Buy share price is up 87% in the last three years. … Notably, the EPS growth has been slower than the annualised share price gain of 23% over three years.

Simply Wall St -

BBY Company Info

Description

Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide Computing and Mobile Phones, such as computing and peripherals, e-readers, networking products, tablets, and wearables, as well as mobile phones comprising related mobile network carrier commissions; consumer electronics, including digital imaging, health and fitness, home theater, portable audio, and smart home products; and entertainment products consisting of drones, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products. The company’s stores also offer appliances, such as dishwashers, laundry appliances, ovens, refrigerators, blenders, coffee makers, and vacuums; and other products, such as beverages, snacks, and sundry items, as well as baby products, luggage, and sporting goods. In addition, it provides services comprising consultation, design, delivery, installation, memberships, protection plans, repair, set-up, and technical support services, as well as connected health services for aging consumers. The company offers its products through stores and Websites under the Best Buy, bestbuy.com, Best Buy Direct, Best Buy Express, Best Buy Mobile, Geek Squad, GreatCall, Magnolia, Pacific Kitchen and Home, bestbuy.ca, and bestbuy.com.mx brand names, as well as through mobile applications and call centers. As of February 2, 2019, it had approximately 1,187 large-format and 51 small-format stores. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota.

Details
Name: Best Buy Co., Inc.
BBY
Exchange: NYSE
Founded: 1966
$18,180,800,728
267,916,309
Website: http://www.bestbuy.com
Address: Best Buy Co., Inc.
7601 Penn Avenue South,
Richfield,
Minnesota, 55423,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BBY Common Stock New York Stock Exchange US USD 18. Apr 1985
DB BUY Common Stock Deutsche Boerse AG DE EUR 18. Apr 1985
LSE 0R18 Common Stock London Stock Exchange GB USD 18. Apr 1985
SWX BBY Common Stock SIX Swiss Exchange CH CHF 18. Apr 1985
BMV BBY * Common Stock Bolsa Mexicana de Valores MX MXN 18. Apr 1985
BOVESPA BBYY34 BDR EA REP 1 COM SHS USD0.10 Bolsa de Valores de Sao Paulo BR BRL 27. Jul 2016
Number of employees
Current staff
Staff numbers
125,000
Best Buy employees.
Industry
Computer and Electronics Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:19
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/08
Last earnings filing: 2019/03/28
Last earnings reported: 2019/02/02
Last annual earnings reported: 2019/02/02


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.