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BBY

Best Buy NYSE:BBY Stock Report

Last Price

US$67.44

Market Cap

US$15.2b

7D

-3.6%

1Y

-38.4%

Updated

28 Sep, 2022

Data

Company Financials +
BBY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends5/6

BBY Stock Overview

Best Buy Co., Inc. retails technology products in the United States and Canada.

Best Buy Co., Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Best Buy
Historical stock prices
Current Share PriceUS$67.44
52 Week HighUS$141.97
52 Week LowUS$64.29
Beta1.52
1 Month Change-8.49%
3 Month Change3.45%
1 Year Change-38.37%
3 Year Change3.72%
5 Year Change18.01%
Change since IPO29,034.27%

Recent News & Updates

Sep 25

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.

Sep 05
Best Buy Co., Inc. (NYSE:BBY) is a Value Investors' Dividend Opportunity

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%.

Shareholder Returns

BBYUS Specialty RetailUS Market
7D-3.6%-0.4%-2.0%
1Y-38.4%-35.6%-20.3%

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.

Price Volatility

Is BBY's price volatile compared to industry and market?
BBY volatility
BBY Average Weekly Movement5.8%
Specialty Retail Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
196676,125Corie Barryhttps://investors.bestbuy.com/investor-relations/overview/default.aspx

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

How do Best Buy's earnings and revenue compare to its market cap?
BBY fundamental statistics
Market CapUS$15.18b
Earnings (TTM)US$1.77b
Revenue (TTM)US$49.25b

8.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBY income statement (TTM)
RevenueUS$49.25b
Cost of RevenueUS$38.50b
Gross ProfitUS$10.76b
Other ExpensesUS$8.98b
EarningsUS$1.77b

Last Reported Earnings

Jul 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.87
Gross Margin21.84%
Net Profit Margin3.60%
Debt/Equity Ratio40.1%

How did BBY perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

44%

Payout Ratio