BBY Stock Overview
Best Buy Co., Inc. retails technology products in the United States and Canada.
Best Buy Co., Inc. Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$67.44|
|52 Week High||US$141.97|
|52 Week Low||US$64.29|
|1 Month Change||-8.49%|
|3 Month Change||3.45%|
|1 Year Change||-38.37%|
|3 Year Change||3.72%|
|5 Year Change||18.01%|
|Change since IPO||29,034.27%|
Recent News & Updates
An Updated View On Best Buy
Summary The challenging macroeconomic environment, including low consumer confidence, inflation, supply chain disruption, keep negative influencing BBY. Sharp decline in sales and substantial margin contraction, but the full year guidance provided by the firm in July has not been revised downwards. Best Buy keeps paying dividends to its shareholders, while it paused its share repurchase program. From a valuation perspective, the stock remains attractive, in our opinion. We maintain our "hold" rating on the stock. This year, we have published already two articles on Best Buy (BBY), titled: The Pros And Cons Of Investing In Best Buy Now in June Best Buy: The Headwinds Are Temporary in July Both times we have rated Best Buy's stock as a "hold". The main reasons for our rating were: + According to the traditional price multiples, BBY appears to be undervalued. + The firm has a strong track record of returning value to its shareholders through dividend payments and through share buybacks. - Macroeconomic headwinds are likely to put downward pressure on sales and margins in the near term. - Best Buy's enterprise comparable sales have been declining. In today's article, we will revisit Best Buy and provided and updated view on the stock, taking the recent macro- and microeconomic developments into account. Let us start with the firm's latest quarterly earnings report. Quarterly earnings report Just like in the first quarter, in the second quarter the comparable sales figures have kept falling. Financial results (Best Buy) Sales have been trending lower across all segments, together with contracting margins. While these results are not particularly pleasing for the shareholders, they do not come as a surprise. We have highlighted in our previous article that the low levels of consumer confidence are likely to lead to declining demand for durable, non-essential goods. This trend is clearly apparent now in the firm's results. In the press release, the management has also elaborated on the softer than expected demand, compared to the prior years: Our comparable sales were down 12.1% as we lapped strong comparable sales growth last year of 19.6%. [...] As we entered the year, we expected the consumer electronics industry to be softer than last year following two years of elevated growth driven by unusually strong demand for technology products and services and fueled partly by stimulus dollars. The macro environment has been more challenged due to several factors and that has put additional pressure on our industry. On the other hand, the company has kept its latest guidance (released in July) unchanged, which foresees a comparable sales decline in a range around 11% and a non-GAAP operating income rate of approximately 4%. On a segment basis, there has been more information provided on the driving factors of decline sales and contracting margins: Domestic From a merchandising perspective, the company had comparable sales declines across almost all categories, with the largest drivers on a weighted basis being computing and home theatre. Domestic gross profit rate was 22.0% versus 23.7% last year. The lower gross profit rate was primarily due to: (1) lower services margin rates, including pressure associated with the Best Buy Totaltech membership offering; (2) lower product margin rates, including increased promotions; and (3) higher supply chain costs. All of the reasons mentioned here have been to some extent anticipated in our first two articles. International International revenue of $760 million decreased 9.3% versus last year. This decrease was primarily driven by a comparable sales decline of 4.2% in Canada and the negative impact of approximately 420 basis points from foreign currency exchange rates. International gross profit rate was 23.4% versus 24.3% last year. The lower gross profit rate was primarily driven by lower product margin rates.
Best Buy Co., Inc. (NYSE:BBY) is a Value Investors' Dividend Opportunity
Despite positive earnings results, Best Buy Co., Inc. (NYSE: BBY) seems to struggle to reverse the negative trend, as it looks to underperform the broad market. While trading in a single-digit price-to-earnings zone, it looks like a better value compared to its peers – especially given its noteworthy dividend of almost 5%.
|BBY||US Specialty Retail||US Market|
Return vs Industry: BBY underperformed the US Specialty Retail industry which returned -37.3% over the past year.
Return vs Market: BBY underperformed the US Market which returned -22.1% over the past year.
|BBY Average Weekly Movement||5.8%|
|Specialty Retail Industry Average Movement||7.9%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: BBY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: BBY's weekly volatility (6%) has been stable over the past year.
About the Company
Best Buy Co., Inc. retails technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness, home theater, portable audio comprising headphones and portable speakers, and smart home products.
Best Buy Co., Inc. Fundamentals Summary
|BBY fundamental statistics|
Is BBY overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BBY income statement (TTM)|
|Cost of Revenue||US$38.50b|
Last Reported Earnings
Jul 30, 2022
Next Earnings Date
|Earnings per share (EPS)||7.87|
|Net Profit Margin||3.60%|
How did BBY perform over the long term?See historical performance and comparison